American Eagle Outfitters (AEO) Cuts Q2 EPS Outlook
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Price: $16.17 +1.06%
EPS Growth %: -51.1%
Financial Fact:
Retained earnings, ending: 1.74B
Today's EPS Names:
BTTX, VAXX, ELYS, More
EPS Growth %: -51.1%
Financial Fact:
Retained earnings, ending: 1.74B
Today's EPS Names:
BTTX, VAXX, ELYS, More
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American Eagle Outfitters, Inc. (NYSE: AEO) is revising its second quarter EPS outlook to approximately $0.10, compared to EPS from continuing operations of $0.21 last year. The revised outlook is due to weaker than expected sales and margin results. Total net revenue decreased approximately 2% in the second quarter, while consolidated comparable sales, including AEO direct, decreased 7%. This compares to an 8% increase last year. Second quarter comparable sales are compared to the 13 weeks ended August 4, 2012.
The Street sees EPS of $0.21.
Robert Hanson, Chief Executive Officer stated, “We are not at all happy with our second quarter results, which were impacted primarily by a disappointing performance of our AEO women’s assortment and weak traffic. Results were exacerbated by a highly promotional retail environment, which intensified over the course of July. Within this context, we increased the depth and breadth of markdowns; these actions have enabled us to achieve a clean inventory position moving into the third quarter.”
“We are encouraged to see strength in our direct business, which posted a low double-digit increase. Other areas of continued performance included AEO men’s business, aerie, factory stores, and international markets, validating our strategic initiatives. Our efforts are keenly focused on strengthening our women’s business and ensuring our assortments are compelling, innovative and balanced across core, core fashion and fashion. The domestic retail environment remains challenging, however, we have a strong sense of urgency and believe we are focused on the right actions to regain traction, deliver strong returns and profitable growth,” continued Hanson.
Management will provide a business update and earnings outlook with the second quarter earnings release on Wednesday, August 21st. The company will host a conference call and real time webcast at 9:00 a.m. Eastern Time on that date. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to www.ae.com to access the webcast and audio replay.
The Street sees EPS of $0.21.
Robert Hanson, Chief Executive Officer stated, “We are not at all happy with our second quarter results, which were impacted primarily by a disappointing performance of our AEO women’s assortment and weak traffic. Results were exacerbated by a highly promotional retail environment, which intensified over the course of July. Within this context, we increased the depth and breadth of markdowns; these actions have enabled us to achieve a clean inventory position moving into the third quarter.”
“We are encouraged to see strength in our direct business, which posted a low double-digit increase. Other areas of continued performance included AEO men’s business, aerie, factory stores, and international markets, validating our strategic initiatives. Our efforts are keenly focused on strengthening our women’s business and ensuring our assortments are compelling, innovative and balanced across core, core fashion and fashion. The domestic retail environment remains challenging, however, we have a strong sense of urgency and believe we are focused on the right actions to regain traction, deliver strong returns and profitable growth,” continued Hanson.
Management will provide a business update and earnings outlook with the second quarter earnings release on Wednesday, August 21st. The company will host a conference call and real time webcast at 9:00 a.m. Eastern Time on that date. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to www.ae.com to access the webcast and audio replay.
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