American Eagle's stock slumps after downbeat same-store sales outlook
Shares of American Eagle Outfitters Inc. dropped 5.4% in premarket trade Wednesday, after the apparel retailer beat fiscal fourth-quarter profit expectations but provided a downbeat same-store sales outlook. For the quarter to Jan. 28, earnings fell to $54.6 million, or 30 cents a share, from $81.7 million, or 42 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 39 cents, above the FactSet consensus of 38 cents. Revenue fell 1% to $1.10 billion from $1.11 billion, just shy of the FactSet consensus of $1.11 billion. The company said same-store sales "were up slightly," following a 4% increase a year ago, while the FactSet consensus was for 0.4% growth. Looking ahead, the company expects same-store sales of flat to a low single-digit decline, compared with the FactSet consensus for 0.8% growth. The stock has lost 5.3% over the past three months through Tuesday, while the S&P 500 has gained 7.9%.
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