Chuyển tới nội dung
Trang chủ » AEO shares nosedive following earnings report for American Eagle Outfitters.

AEO shares nosedive following earnings report for American Eagle Outfitters.

American Eagle Outfitters AEO shares plunge after earnings report

American Eagle Outfitters AEO shares plunge after earnings report

American Eagle Outfitters (AEO) has dropped its full-year outlook, causing shares to plummet by 14% following its earnings report. Although AEO matched Wall Street’s quarterly earnings expectations and beat revenue expectations, it adjusted its forecast projecting operating income to range between $250 million and $270 million, below the $270 million to $310 million predicted in March. The company anticipates full-year revenue to be flat to down low single-digits, compared to the flat to up single-digits it projected before. The company hopes shoppers will buy more seasonal merchandise as Memorial Day hits and summer weather takes hold.

AEO reported net income has fallen roughly 42% to $18.45 million, with digital revenue dropping 4%. Total net revenue has risen about 2%, and store revenue is up 5%. Its brands had mixed results, with Aerie’s comparable sales increasing 2%. However, comparable sales for American Eagle’s namesake brand declined 2% compared with the year-ago period.

CEO Jay Schottenstein stated that AEO will focus on “inventory discipline, cost savings and efficiencies across the business,” particularly due to the tougher economic backdrop. Furthermore, investment opportunities will be a focus area for the company.

FAQs:

What caused the decline in AEO’s full-year outlook?
AEO’s sales trends slowed at the beginning of the second quarter, causing the retailer to adjust its forecast and project that full-year revenue will be flat to down low single-digits.

How did AEO perform in the first quarter of 2023?
While AEO matched Wall Street’s quarterly earnings expectations and beat revenue expectations, it reported falling profits, with net income falling roughly 42% to $18.45 million.

What brands does AEO own?
AEO includes its namesake brand and the Aerie brand.

What is AEO’s CEO Jay Schottenstein’s plan for the company?
Schottenstein stated that AEO will focus on “inventory discipline, cost savings and efficiencies across the business,” particularly due to the tougher economic backdrop. Investment opportunities will be a focus area for the company.

American Eagle Outfitters AEO shares plunge after earnings report
American Eagle Outfitters AEO shares plunge after earnings report

Shares of American Eagle Outfitters (AEO) experience a sharp decline following release of earnings report

American Eagle Outfitters’ shares tumbled in after-hours trading on Wednesday, as the company lowered its full-year outlook. Despite meeting Wall Street’s quarterly earnings expectations and beating revenue expectations, the company has cut its forecast. American Eagle Outfitters expects full-year revenue to be flat to down low single-digits, lagging the flat to up single-digits it projected before. The mall retailer said it now expects operating income to range between $250m and $270m, below the $270m to $310m range it had predicted in March. Sales trends slowed as the company began the second quarter, a trend that the retailer factored into its guidance. Shares fell approximately 14% in response to the earnings report after the market close.

Trả lời

Email của bạn sẽ không được hiển thị công khai. Các trường bắt buộc được đánh dấu *