A view of the American Eagle Outfitters store in Arlington, Virginia.
Erin Scott | Reuters
shares of american eagle outfitters Shares fell in after-hours trading Wednesday after the company cut its full-year outlook.
The company cut its forecasts even though it matched Wall Street’s quarterly profit forecast and beat its revenue forecast.
The mall retailer now expects operating profit to be in the $250 million to $270 million range, beating its March forecast of a range of $270 million to $310 million. said to fall below. The company expects full-year sales to be flat to low-single-digit declines, lagging the flat to single-digit growth previously expected.
Sales trends slowed as the company’s second quarter began, and retailers factored this pattern into their guidance. The company’s executive creative director, Jen Foyle, said during an earnings call that she expects shoppers to buy more seasonal items as Memorial Day approaches and summer weather takes hold. .
Shares fell about 14% following the company’s earnings announcement after the market closed.
Here’s how the company performed in the three months ended April 29 compared to Wall Street estimates, based on a Refinitiv poll of analysts.
- Earnings per share: 17 cents adjusted, 17 cents expected
- Earnings: $1.08 billion vs. $1.07 billion forecast
American Eagle differed significantly from its competitors, including its eponymous and Airy brands. Abercrombie & Fitch. early Wednesday morning, Abercrombie stock soars American Eagle stock also rose after posting an unexpected gain and raising its outlook.
American Eagle lost its previous profit as it reported its own quarterly results after the bell, including profit declines. Net income was $18.45 million (9 cents per share), down approximately 42% from $31.74 million (0.16 cents per share) in the prior year period.
Total net revenues increased approximately 2% to $1.08 billion from $1.06 billion in the same period last year. Store revenue increased by 5%. Digital revenue fell 4%.
The company’s brands have had mixed results. Aery’s comparable sales increased 2% year-over-year, while American Eagle’s like-named brand comparable sales decreased 2% year-over-year.
American Eagle has made strides in inventory levels.including many retailers the goal, Coles others, I got stuck with too many products That’s because shipments have stalled in the supply chain and consumer tastes have drifted away from popular categories during the COVID-19 pandemic.
Inventory at the end of the quarter was $625 million, down 8% year-over-year.
CEO Jay Schottenstein said in a news release that the company hopes to restore operating margins and pursue profitable growth. He said the focus is on “inventory discipline, cost reduction and efficiency across the business,” especially in the context of challenging economic conditions.
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