Shares of apparel retailer American Eagle Outfitters (AEO
) fell over 7% on Friday morning after the company posted Q4 guidance that was well below estimates. The company also reported that its third quarter earnings plunged from last year.
AEO’s Earnings in Brief
-AEO’s Q3 earnings fell to $24.9 million, or 13 cents per share, from $78.61 million, or 39 cents per share, a year ago.
-Adjusted earnings were 19 cents per share, which matched analysts’ estimates.
-Total revenue was $857 million. Analysts expected to see revenue of $844.76 million.
-Looking ahead, the company expects to see fourth quarter earnings between 26 and 30 cents, which would fall below analysts’ estimate of 39 cents per share.
CEO Commentary
Robert Hanson, CEO of AEO, commented: "Our financial performance is clearly unsatisfactory and not consistent with our objectives. As we continue to navigate through an intensely promotional North American retail landscape, we are making improvements in merchandising and marketing, while aggressively pursuing efficiency gains, expense reductions and ensuring disciplined inventory management. We are continuing to invest in important areas of growth including omni-channel, global expansion and factory stores — all high-return segments, which diversify our business and will be key drivers of our future growth and success."
AEO’s Dividend
AEO made no mention of its next quarterly dividend, but the company will likely declare a 13 cent dividend in the near future. The company paid its last dividend on October 16.
Stock Performance
American Eagle shares were down $1.20, or 7.32%, during pre-market trading Friday. The stock is down 20% YTD.
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