American Eagle Outfitters, Inc. (NYSE: AEO) reported its third quarter financial results during pre-market hours on Wednesday. The Company reported in-line earnings and surpassed revenue expectations, but fell short of its holiday guidance, causing shares to falter by 7% after the opening bell.
For the quarter, American Eagle reported earnings of USD 0.41 per share on revenue of USD 1.07 Billion. The Company’s earnings fell in-line with Zacks Consensus Estimates, but beat revenue estimates by 0.23%.
American Eagle reported quarterly record revenues during the quarter, increasing by 6% compared to the same quarter a year ago. Consolidated comparable sales increased by 5%, following an 8% comparable sales increase last year.
By brand, American Eagle’s comparable sales increased by 2%, following a 5% increase last year. Aerie’s comparable sales increased by 20%, building on a 32% increase last year and marking the 20th consecutive quarter of double-digit growth.
““Strong top line performance across brands and channels led to our 19th consecutive quarter of comparable sales growth and record third quarter revenue. In a tough environment, we reported EPS in line with our guidance. We continued to deliver on our strategic pillars, with Aerie and American Eagle Jeans demonstrating strong sales and profit growth,” said Jay Schottenstein, American Eagle Chairman and Chief Executive Officer.
Schottenstein continued and said that softer demand in certain AE apparel categories led to higher markdowns and has persisted into the fourth quarter.
“The team has been working hard to quickly course correct, and our focus is squarely on continuing to capitalize on the strength of our brands, accelerating the growth of Aerie, and creating shareholder value,” said Schottenstein.
As for the fourth quarter, American Eagle is forecasting earnings to be in the range of USD 0.34 to USD 0.36 per share, with comparable sales remaining approximately flat. Refinitiv analysts are predicting earnings of USD 0.46 per share.
American Eagle shares have now fallen by 27.2% this year.
Written by Bryan Shin.
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