Plus   Neg

American Eagle Outfitters Q4 Revenues Miss, Outlook Weak

Shares of American Eagle Outfitters Inc. (AEO) slipped 4% on extended trading session Wednesday after the company's fourth-quarter revenues fell short of estimates and outlook also were below current expectations.

Net income for the fourth quarter dropped to $76.2 million or $0.43 per share from $94.0 million or $0.52 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.42 per share.

Revenues for the quarter grew 1% to $1.24 billion from $1.23 billion a year ago. Analysts had a consensus revenue estimate of $1.26 billion for the quarter.

Revenues were adversely affected by about $60 million of lost revenue due to operating one less week in 2018, which is consistent with the retail calendar.

Comparable sales increased 6% over the comparable period ending February 3, 2018, following an 8% increase last year. This marked the 16th consecutive quarter of positive comparable sales.

By brand, American Eagle comparable sales increased 3%, building on a 5% increase last year. Aerie's comparable sales increased 23%, following a 34% increase last year, marking the 17th consecutive quarter of double-digit comp growth.

Looking forward to the first quarter, the company expects earnings of about $0.19 to $0.21 per share. Analysts currently estimate earnings of $0.24 per share for the quarter.

AEO closed Wednesday's trading at $21.32, up $0.89 or 4.36%, on the NYSE. The stock, however, slipped $0.92 or 4.32% in the after-hours trade.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The Federal Trade Commission (FTC) is in the process of sending out refund checks to consumers who were allegedly misled by Office Depot, Inc. and its software provider Support.com, Inc., into buying computer repair products and services. Out of $34 million, being the total amount of checks, Office Depot paid $25 million and Support.com paid $10 million as part of 2019 settlement. Gap Inc. partnered with fashion resale platform thredUP to facilitate the exchange of secondhand cloths. The retailer in a blog post said its customers can bring secondhand clothes in exchange for shopping credit that can be redeemed at Gap, Banana Republic, Athleta, or Janie and Jack. Customers who redeem their credits at Gap brands will receive an additional 15 percent payout bonus. Coca-Cola Co. (KO) on Friday reaffirmed its guidance for the full-year 2020 and provided an update on the expected impact from COVID-19 on first quarter 2020 results, ahead of its presentation at the Consumer Analyst Group of New York (CAGNY) Conference. For fiscal 2020, the company continues to project...
Follow RTT