Teen retailer American Eagle Outfitters Inc. (NYSE: AEO) reported Friday morning that fourth-quarter same-store sales to date are up 4% year over year and that the company continues to forecast the quarter’s earnings at $0.40 to $0.42. That was not good enough for investors.
Shares dropped about 15% in early trading Friday because reported sales came in lower than expectations. Retail Metrics had a consensus analyst estimate for same-store sales to rise 4.7%.
American Eagle CEO Jay Schottenstein said:
Despite a very challenging macro-environment, we had a solid holiday season, driven by positive results in both our brands. The online business was particularly strong, and we leveraged our omni-channel tools to deliver an improved customer experience. I am extremely pleased with the steady progress made in 2015, with expected annual EPS growth of roughly 70%.
In addition to its namesake stores, American Eagle also operates Aerie brand stores.
Retail stores catering to teens have had a tough year or so as more traditional retailers like American Eagle are losing ground to fast-fashion brands like H&M, Forever 21 and Zara. Warm weather during the past few months of 2015 also stunted sales of winter garb.
Shares of American Eagle traded down more than 15% Friday morning and posted a new 52-week low of $13.40. The stock started the year at $15.30, and the 52-week high is $18.49.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.