For the full year, American Eagle reported EPS of $0.74 on revenues of $3.31 billion, compared with EPS of $1.39 on revenues of $3.48 billion in 2012. The 2012 fourth quarter and fiscal year included an extra week, compared with 2013. The consensus estimates called for EPS of $0.73 on revenues of $3.3 billion.
The share price was sinking Tuesday morning because the company’s comments on its first-quarter outlook include a “high single-digit decline” in same-store sales. Earnings are expected to break even, compared with EPS of $0.18 a year ago and a consensus estimate of $0.13. That was all it took to send shares tumbling.
The company’s CEO said:
The Company’s results in 2013 were highly disappointing. While tough macro conditions have persisted in our retail sector, our merchandise and overall customer experience fell short of expectations. We’re taking steps to bring greater focus and excitement to our product offering and better engage our core customers. Our brands remain incredibly strong and I’m confident in our ability to execute the strategic plan and resume long-term profitable growth.
Shares traded down about 6.8% Tuesday morning, at $13.24 in a 52-week range of $12.59 to $21.07. Thomson Reuters had a consensus analyst price target of around $16.20 before the results were announced.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
