American Eagle Plunges On Outlook

(MENAFN- American Eagle Plunges on Outlook

Shares of American Eagle Outfitters (NYSE:AEO) dropped Wednesday in after-hours trading, as the company lowered its full-year outlook.

The company cut its forecast, even as it matched Wall Street's quarterly earnings expectations and beat revenue expectations.

The mall retailer said it now expects operating income to range between $250 million and $270 million, below the $270 million to $310 million range it had predicted in March. It said it anticipates full-year revenue to be flat to down low single-digits, lagging the flat to up single-digits it projected before.

Sales trends slowed as the company began the second quarter, a pattern the retailer factored into its guidance. On an earnings call, Jen Foyle, the company's executive creative director, said she hopes shoppers will buy more seasonal merchandise as Memorial Day hits and summer weather takes hold.

Shares plunged about 14% following the company's earnings report after the market close. AEO shares lost $1.89, or 15.6%, to $10.19 at Thursday's open.

Earnings per share were in line with expectations at 17 cents, on revenue of $1.08 billion, topping expectations of $1.07 billion.

American Eagle, which includes its namesake brand and the Aerie brand, diverged significantly from its competitor, Abercrombie & Fitch (NYSE:ANF). Earlier Wednesday, shares of Abercrombie shot up as it posted a surprise profit and raised its outlook, lifting American Eagle's stock with it.


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