American Eagle Outfitters Inc. shares sank 11% in Wednesday premarket trading after the apparel retailer reported third-quarter same-store sales below estimates and offered weak guidance. Net income totaled $75.8 million, or 41 cents per share, up from $74.1 million, or 38 cents per share, for the same period last year. The FactSet consensus was 41 cents per share. Revenue for the quarter was $941 million, up from $919 million last year and beating the $940 million FactSet consensus. Same-store sales increased 2%, falling short of the FactSet consensus for a 2.9% increase. American Eagle sees fourth-quarter EPS of 37 cents to 39 cents, below the 46-cent FactSet consensus. Same-store sales are expected to be flat to a low-single digit increase. The FactSet estimate is for a 3.8% increase. American Eagle shares are up 22% for the year so far while the S&P 500 index is up nearly 8% for the same period.
Copyright © 2016 MarketWatch, Inc.