American Eagle Outfitter’s Q1 Outlook Disappoints the Street (AEO)
NYSE: AEO) slumped on Wednesday as adjusted earnings fell short marginally short of Street’s estimation while guidance on the current quarter also disappointed investors.
For the fiscal fourth quarter ended February 2, American Eagle Outfitters reported net income of $94.8 million, or 47 cents a share, compared to profit of $51.3 million, or 26 cents per share, in the same period of last year. In the year earlier quarter, the Company suffered a loss of $9.1 million from discontinued operations.
Stripping out onetime items such as restructuring costs and tax benefits, earnings climbed to 55 cents a share, falling short of analysts’ forecast by a penny, according to a data compiled by FactSet Research.
Revenue during the period jumped 9% to $1.12 billion from $1.03 billion, which was in-line with analysts’ estimation.
Same-store-sales, a key gauge on retailer’s performance since it excludes sales impact of those stores that were closed down or opened less than 12 month period, climbed 4%.
Total inventories level shrank 10% to $332 million in the recently concluded quarter.
For the full-year, net income came at $232.1 million or $1.16 a share, up from $151.7 million or 77 cents a share, in the same quarter of last year. Full year revenue climbed 12% to $3.48 billion from $3.12 billion. Declining inventories level and lesser number of marked downs helped boosting profits, the Company said.
For the current quarter, American Eagle Outfitters expects earnings to be in the range of 16 cents to 19 cents a share, falling short of analysts’ estimate of 25 cents a share.
Unfavorable economic environment (hike in payroll taxes, delay in tax refunds, and bad weather) all impacted sales in February, the Company said.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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