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NEW YORK – American Eagle Outfitters Inc (NYSE:AEO) reported second quarter revenue that fell short of analyst expectations on Thursday, sending shares down 7%.
The apparel retailer posted revenue of $1.3 billion for the quarter ended August 3, slightly below the consensus estimate of $1.31 billion. Adjusted earnings per share came in at $0.39, in line with analyst forecasts.
American Eagle’s revenue rose 8% year-over-year, helped by a 5% increase in comparable sales at its namesake brand and a 4% comp sales gain at Aerie.
“Our Powering Profitable Growth strategy is off to a great start, locking in a strong first half and setting us on track to achieve the high end of our prior operating profit outlook for 2024,” said CEO Jay Schottenstein in a statement.
For the third quarter, American Eagle expects operating income between $120 million and $125 million. The company raised its full-year operating income guidance to a range of $455 million to $465 million, the high end of its previous outlook.
Following the announcement, analysts at Citi remarked, “With mixed 2Q results/updated guidance, we expect shares to trade lower today, although we believe downside to shares is likely limited by the very negative sentiment on the stock going into 2Q EPS.”
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