:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1806421053-eb72859bdf33442c80b4ceab1fcf27e9.jpg "Clothes on display at an American Eagle store in Glendale, Calif.")
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Key Takeaways
- American Eagle Outfitters posted weaker-than-expected revenue and guidance as sales at its secondary brands declined.
- The adolescent adult clothing retailer gave a soft outlook for current quarter revenue and operating income.
- The company’s parts were down on the news, and in the red for the year so far.
Shares of American Eagle Outfitters (AEO) fell after the young adult upping retailer’s sales missed forecasts and it gave a soft outlook for the current quarter as its smaller brands struggled.
The old man of the American Eagle, Aerie, Unsubscribed, and Todd Snyder brands said second-quarter revenue rose 7.5% to $1.29 billion, around $20 million below the average estimate of analysts surveyed by Visible Alpha. Diluted earnings per share (EPS) of $0.39 were in engage with expectations.
Sales at its American Eagle stores gained 7.9% to $827.6 million. They were up 9.3% to $415.6 million at Aerie. Notwithstanding how, other brand sales slumped 47% to $57.5 million.
The news sent American Eagle’s shares down concerning 3%. The stock is down for the year, though less than 1%.
CEO Jay Schottenstein said the company was operating in “a dynamic macroeconomic locale,” and will “remain disciplined and focused on delivering profitable growth and long-term shareholder value.”
AEO is anticipating third-quarter gross income to be flat to up slightly from last year’s $1.3 billion, and operating income to be in the range of $120 million to $125 million. Manifest Alpha predictions were for revenue of $1.31 billion and operating income of $137 million.
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