Less Sales Results To The Drop Of AEO’s Stock

A pedestrian walks past an Old Navy Inc. store in Chicago, Illinois, U.S., on Friday, Feb. 19, 2016. The Gap Inc. is scheduled to release earnings figures on February 24. Photographer: Christopher Dilts/Bloomberg via Getty Images

American Eagle Outfitters (AEO) missed gross sales estimates and similar-retailer gross sales progress slowed. American Eagle inventory fell after hours. Abercrombie & Fitch (ANF) earnings simply beat fourth-quarter views Wednesday, persevering with a turnaround for the youth attire chain. Abercrombie inventory spiked in Wednesday’s session.

American Eagle earnings got here in at 43 cents vs. 52 cents a yr in the past, or adjusted EPS of 44 cents. Income elevated 1% to $1.24 billion.

Analyst had anticipated EPS of 42 cents on income of $1.27 billion, in accordance with Zacks Funding Analysis.

In This fall, American Eagle model identical-retailer gross sales elevated three%, down from 5% a yr in the past. Aerie model similar-retailer gross sales rose 23%, down from 34%.

For Q1 2019, the retailer sees EPS of 19-21 cents, beneath views for 25 cents.

American Eagle inventory fell 4.4% after hours. Shares had closed up 4.4% at 21.25 within the common session, holding above the 50-day line.

Abercrombie earnings fell 2% to $1.35 per share, however that beat views by 22 cents. Gross sales fell three% to $1.16 billion, edging previous estimates for $1.14 billion.

Identical-retailer gross sales jumped three%, double expectations. Digital gross sales topped $1 billion for the total yr.

In This fall, Abercrombie model gross sales declined 9% to $442.7 million. However the a lot-bigger Hollister model noticed gross sales rise 1% to $712.9 million. U.S. gross sales grew 1% to $778.5 million, whereas worldwide gross sales plunged 10% to $377.1 million.

For the total 12 months, Abercrombie earnings leapt to $1.15 a share vs. 65 cents in 2017 and a six-cent loss in 2016.

“Our transformation initiatives are gaining traction,” CEO Fran Horowitz mentioned. The corporate is on monitor to satisfy fiscal 2020 targets, she added.