American Eagle Outfitters drops after missing on guidance

American Eagle Outfitters dropped more than 13% in pre-market trading on Wednesday after the retailer reported a disappointing guidance for the third quarter.

American Eagle said it earned $0.34 a share in second quarter, topping the Wall Street consensus by $0.04, according to Bloomberg data. The retailer said second-quarter sales totaled $965 million, surpassing the $937 million that was anticipated. Comparable sales grow 9%, better than the 6.4% increase that was expected.

“The second quarter results exceeded our expectations, delivering record sales and 79% growth in adjusted earnings,” CEO Jay Schottenstein said in the earnings release.

“This marked our 14th consecutive quarter of comparable sales growth, with the American Eagle and Aerie brands posting positive results across both stores and e-commerce.”

Looking ahead, the company sees its adjusted third-quarter earnings per share between $0.45 and $0.47, worse than $0.49 that analysts polled by Bloomberg were expecting. That forecast excludes any potential asset impairment and restructuring charges..

Shares of American Eagle Outfitters were up 30% this year through Tuesday.

AEO

source
Ethel Jiang/Business Insider