by Christopher Freeburn | March 11, 2014 9:30 am
On Tuesday, American Eagle Outfitters posted sharply lower quarterly profits, sending AEO stock slumping more than 5% in pre-market trading.
AEO stock sank after the apparel retailer said it earned just $10.5 million during its fiscal fourth quarter, a drop of 89% compared to the profit of $94.8 million it turned in the year-ago period. Adjusted EPS came in at 27 cents, a penny above the earnings of 26 cents a share that the company had predicted in January, the Wall Street Journal noted.
Same-store sales tumbled 7% during the quarter, though its AEO Direct online division saw sales climb 8%. Overall, AEO reported fourth-quarter revenue of $1.04 billion, which narrowly beat analysts who were looking for $1.03 billion.
AEO interim CEO Jay Shottenstein called AEO’s performance for 2013 “highly disappointing,” conceding that AEO “fell short of expectations” in both customer experience and merchandise.
For the current quarter, anticipates break even adjusted earnings per share. Analysts have estimated earnings of 13 cents per share for the fiscal first quarter.
AEO stock closed at $14.21 a share on Monday. Over the past 12 months, AEO stock has fallen more than 30%.
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