American Eagle Outfitters Earnings: Here’s Why Investors are Not Excited Now

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American Eagle Outfitters, Inc. (NYSE:AEO) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 9%.

American Eagle Outfitters, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 57.14% to $0.09 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Decreased 1.67% to $727.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Eagle Outfitters, Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company missed the mean analyst estimate of $0.10. It beat the average revenue estimate of $719.46 million.

Quoting Management: Robert Hanson, Chief Executive Officer, stated, “Our second quarter results reflected disappointing product execution in women’s. Additionally, we faced a highly promotional and competitive retail landscape and a decline in traffic, which have continued into the third quarter. We are working hard to strengthen our assortments, marketing efforts and overall execution, while maintaining tight inventories and disciplined expense management. Although extremely disappointed with our results, I’m confident in the strength of our brands, our strategic initiatives including, factory stores, aerie, omni-channel and international, as well as the team’s resolve to regain momentum and improve our bottom line performance.”

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