American Eagle Outfitters Shares Slump 3% Premarket After Guidance Falls Short Of Estimates
American Eagle Outfitters Inc. shares fell 3.6% Wednesday, after the company reported weaker-than-expected profit for the first quarter and offered an outlook that lagged estimates. The teen apparel retailer said it net income of $25.2 million, or 14 cents a share, in the first quarter, down from $40.5 million, or 22 cents a share, in the year-earlier period. Adjusted per-share earnings came to 16 cents, a penny below the FactSet consensus of 17 cents. Revenue rose to $761.8 million from $749.4 million, above the FactSet consensus of $742 million. Same-store sales rose 2%, topping the FactSet consensus for a decline of 1.4%. "The first quarter results reflected mall traffic headwinds, especially early in the quarter, with improved trends over Easter and a strong digital business throughout," Chief Executive Jay Schottenstein said in a statement. The company is now expecting same-store sales to range from flat to down in the low single digits. EPS is expected to range from 15 cents to 17 cents. The FactSet consensus is for second-quarter same-store sales to grow 0.5% and for EPS of 23 cents. Shares have fallen 15% in 2017, while the S&P 500 has gained 7%.
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