American Eagle Outfitters shares plunge 15% as income falls wanting estimates

NEW YORK – American Eagle Outfitters Inc. (NYSE:AEO) reported third-quarter earnings that barely beat expectations, however income fell wanting estimates, sending shares tumbling in after-hours buying and selling.

The attire retailer posted adjusted earnings per share of $0.48, edging previous the analyst consensus of $0.47. Nevertheless, income of $1.3 billion missed the $1.31 billion estimate.

Whole (EPA:TTEF) comparable gross sales elevated 3% YoY, with Aerie comparable gross sales rising 5% and American Eagle comparable gross sales rising 3%.

Gross revenue declined 3% to $527 million, whereas gross margin contracted to 40.9% from 41.8% final 12 months on account of elevated markdowns and expense deleverage associated to the retail calendar shift.

“Constructing on our optimistic efficiency within the first half of the 12 months, third quarter outcomes present one other proof level of the effectiveness of our Powering Worthwhile Development Plan,” stated Jay Schottenstein, AEO’s Govt Chairman and CEO.

For the fourth quarter, American Eagle expects comparable gross sales to be up roughly 1%, with whole income down 4% together with calendar shift impacts. The corporate forecasts This autumn working earnings of $125-$130 million.

For fiscal 2024, the corporate now tasks adjusted working earnings of $428-$433 million, representing mid-teens progress from $375 million in fiscal 2023.

“We’ve got entered the vacation season nicely positioned, with our main manufacturers providing high-quality merchandise, nice presents and an impressive procuring expertise throughout channels,” Schottenstein added.

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