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."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.