Latest news with #AmericanEagle
CNBC
21 hours ago
- Business
- CNBC
Jim Cramer on Abercrombie and American Eagle earnings: Limit downside on teen retailers
CNBC's Jim Cramer on Friday reviewed recent earnings from teen-focused apparel makers Abercrombie & Fitch and American Eagle Outfitters. While he was more optimistic about the former, he was generally cautious on the group. "I want you to limit your downside with these teen retailers. You never know when a company like this may go from sink and swim to just plain sink, at least for the next quarter," he said. "But to me, Abercrombie — I think that's worth buying perhaps as soon as next week." According to Cramer, teenage consumers are "notoriously fickle," a dynamic that makes it hard to bet on stocks that rely on them. Retailers and consumer-oriented companies broadly have expressed worries about the economic impact of President Donald Trump's tariffs, as most manufacture abroad. Abercrombie & Fitch is down 47.49% year-to-date while American Eagle is down 34.25%. He was disappointed with American Eagle's quarter — the retailer missed on earnings, recording a $75 million write-down in spring and summer merchandise. The company also reduced its full-year guidance before the report because of macroeconomic uncertainty. Cramer said it was strange that American Eagle announced a $200 million buyback while business is weaker. Retailers need flexibility, he said, and American Eagle's buyback will give the company less flexibility. Abercrombie & Fitch managed to beat the estimates, but it cut guidance as it gears up to weather steep tariffs. However, Cramer expressed confidence in CEO Fran Horowitz, who has managed to overhaul the company and execute a substantial turnaround after the brand struggled for years, having previously garnered a reputation for exclusivity, toxicity and racism. He was impressed with the retailer's efforts to diversify its supply chain. He noted that its offshoot brand, Hollister, grew same stores sales while they declined for the namesake brand, which is targeted at slightly older crowd. If investors believe Hollister can keep up the momentum and the flagship brand can improve, Cramer said the stock could be bought. He also said a Monday JPMorgan event featuring top Abercrombie management could move the stock. "I don't usually recommend options here, but I can tell you that teens are so fickle that if I were to buy Abercrombie ahead of the talk at JP Morgan on Tuesday, I actually might even do it with deep in the money calls," Cramer said. Abercrombie & Fitch and American Eagle did not immediately respond to request for comment. Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
CNBC
a day ago
- Business
- CNBC
Stocks making the biggest moves premarket: Ulta Beauty, Airbnb, Gap, American Eagle
Check out the companies making headlines before the bell. UiPath — Shares surged 12% after the automation software company posted first-quarter operating income and revenue figures that exceeded FactSet estimates. UiPath also raised its full-year revenue guidance and sees its current-quarter revenue coming in between $345 million to $350 million, while analysts polled by FactSet were expecting $331.3 million. Ulta Beauty — The beauty retailer's shares rallied 9% after the firm raised its annual profit forecast and crushed expectations with its quarterly results. Ulta said lower inventory losses as well as new launches — especially celebrity-owned brands — helped drive demand at its stores. American Eagle — Shares slumped 7% after the clothing retailer reported a fiscal first-quarter adjusted loss of 29 cents per share, which was wider than an LSEG estimate for a loss of 22 cents per share. American Eagle's $1.09 billion revenue came in as expected. Gap — The apparel retailer plunged 13% after it forecast sales to be flat for its current quarter, while analysts had expected growth of 0.2%. This lackluster guidance overshadowed Gap's first-quarter earnings and revenue beat. Elastic NV — Shares stumbled 10% after the American-Dutch software company guided for full-year revenue in the range of $1.655 billion to $1.67 billion. This missed the FactSet consensus outlook of $1.68 billion. Marvell Technology — The chip stock slipped 4% after first-quarter results came in roughly in line with expectations. Marvell Technology's shares were up 9% in May ahead of the report. Adjusted earnings per share were 62 cents, just a tick ahead of the 61-cent estimate from analysts, according to LSEG. NetApp — The data infrastructure stock shed 5% after forecasting its fiscal first-quarter adjusted earnings to come in the range of $1.48 to $1.58, while analysts polled by FactSet forecast $1.65 per share. However, NetApp posted an earnings and revenue beat for its last quarter. Regeneron Pharmaceuticals , Sanofi — Biopharma stocks Regeneron Pharmaceuticals and Sanofi respectively tumbled 10% and 4% after reporting mixed results in late-stage trials for a respiratory drug called itepekimab they are developing together. Airbnb — Shares slipped 3% after Truist Securities downgraded the short-term vacation home rental company to a sell rating from hold. Analyst C. Patrick Scholes said that investors haven't fully accounted for soft summer leisure trends, both in the U.S. and Europe. PagerDuty — The cloud computing stock fell 5% after PagerDuty forecast that its second-quarter guidance would come in between 19 cents and 20 cents per share, excluding items. This was lower than the profit guidance of 23 cents per share analysts polled by FactSet had penciled in. Zscaler — Shares rose 6% after the cloud security company topped analysts' expectations for its fiscal third-quarter, and raised its full-year earnings and revenue guidance. Zscaler earned 84 cents on an adjusted basis in the third quarter, better than the FactSet consensus estimate for 76 cents per share. Revenue of $678 million exceeded the $666.5 million estimate. — CNBC's Yun Li, Sarah Min and Jesse Pound contributed reporting.
Yahoo
2 days ago
- Business
- Yahoo
American Eagle (AEO) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended April 2025, American Eagle Outfitters (AEO) reported revenue of $1.09 billion, down 4.7% over the same period last year. EPS came in at -$0.29, compared to $0.34 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.09 billion, representing a surprise of -0.15%. The company delivered an EPS surprise of -16.00%, with the consensus EPS estimate being -$0.25. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how American Eagle performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Number of stores - Total (EOP): 1,176 versus the four-analyst average estimate of 1,175. Number of stores - AE Brand: 828 versus the four-analyst average estimate of 824. Number of stores - Aerie stand-alone (incl. OFFL/NE): 321 compared to the 326 average estimate based on four analysts. Comparable store sales: -3% compared to the -3.7% average estimate based on four analysts. Comparable store sales - Aerie: -4% versus the three-analyst average estimate of -3.2%. Gross square footage - Total: 7.23 Msq ft versus the three-analyst average estimate of 7.27 Msq ft. Comparable store sales- American Eagle Outfitters: -2% versus -4.3% estimated by three analysts on average. Number of stores - Todd Snyder: 20 versus the two-analyst average estimate of 19. Number of stores - Unsubscribed: 7 compared to the 6 average estimate based on two analysts. Total net revenue- American Eagle: $693.87 million versus $680.05 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4.3% change. Total net revenue- Aerie: $359.79 million compared to the $357.42 million average estimate based on four analysts. The reported number represents a change of -3.5% year over year. View all Key Company Metrics for American Eagle here>>>Shares of American Eagle have returned +5.3% over the past month versus the Zacks S&P 500 composite's +6.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
2 days ago
- Business
- Yahoo
American Eagle Outfitters (AEO) Reports Q1 Loss, Misses Revenue Estimates
American Eagle Outfitters (AEO) came out with a quarterly loss of $0.29 per share versus the Zacks Consensus Estimate of a loss of $0.25. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16%. A quarter ago, it was expected that this teen clothing retailer would post earnings of $0.50 per share when it actually produced earnings of $0.54, delivering a surprise of 8%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. American Eagle , which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $1.09 billion for the quarter ended April 2025, missing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $1.14 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. American Eagle shares have lost about 33.5% since the beginning of the year versus the S&P 500's gain of 0.1%. While American Eagle has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for American Eagle: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.25 on $1.24 billion in revenues for the coming quarter and $1.01 on $5.22 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, XCel Brands (XELB), has yet to report results for the quarter ended March 2025. This brand management company is expected to post quarterly loss of $1.12 per share in its upcoming report, which represents a year-over-year change of -24.4%. The consensus EPS estimate for the quarter has been revised 66.7% lower over the last 30 days to the current level. XCel Brands' revenues are expected to be $1.33 million, down 39% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Xcel Brands, Inc (XELB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
American Eagle (NYSE:AEO) Posts Q1 Sales In Line With Estimates But Stock Drops
Young adult apparel retailer American Eagle Outfitters (NYSE:AEO) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 4.7% year on year to $1.09 billion. On the other hand, next quarter's revenue guidance of $1.23 billion was less impressive, coming in 0.8% below analysts' estimates. Its non-GAAP loss of $0.29 per share was 32.6% below analysts' consensus estimates. Is now the time to buy American Eagle? Find out in our full research report. Revenue: $1.09 billion vs analyst estimates of $1.09 billion (4.7% year-on-year decline, in line) Adjusted EPS: -$0.29 vs analyst expectations of -$0.22 (32.6% miss) Revenue Guidance for Q2 CY2025 is $1.23 billion at the midpoint, below analyst estimates of $1.24 billion Operating Margin: -7.8%, down from 6.8% in the same quarter last year Locations: 1,176 at quarter end, up from 1,173 in the same quarter last year Same-Store Sales fell 3% year on year (7% in the same quarter last year) Market Capitalization: $1.91 billion 'As we noted in our preliminary release, the first quarter was a challenging period for our business. While we are disappointed with the results, we are taking actions to better position the company and drive stronger performance in the upcoming quarters. Our brands remain resilient. The team is executing with urgency as we look to strengthen both the topline and profit flow-through,' commented Jay Schottenstein, AEO's Executive Chairman of the Board and Chief Executive Officer. With a heavy focus on denim, American Eagle Outfitters (NYSE:AEO) is a specialty retailer offering an assortment of apparel and accessories to young adults. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $5.27 billion in revenue over the past 12 months, American Eagle is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, American Eagle's sales grew at a sluggish 4.3% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as its store footprint remained unchanged. This quarter, American Eagle reported a rather uninspiring 4.7% year-on-year revenue decline to $1.09 billion of revenue, in line with Wall Street's estimates. Company management is currently guiding for a 5% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 1.1% over the next 12 months, a deceleration versus the last six years. This projection doesn't excite us and suggests its products will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. A retailer's store count influences how much it can sell and how quickly revenue can grow. American Eagle listed 1,176 locations in the latest quarter and has kept its store count flat over the last two years while other consumer retail businesses have opted for growth. When a retailer keeps its store footprint steady, it usually means demand is stable and it's focusing on operational efficiency to increase profitability. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. American Eagle's demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 3.4% per year. Given its flat store base over the same period, this performance stems from not only increased foot traffic at existing locations but also higher e-commerce sales as demand shifts from in-store to online. In the latest quarter, American Eagle's same-store sales fell by 3% year on year. This decline was a reversal from its historical levels. We struggled to find many positives in these results. Its EPS missed and its gross margin fell slightly short of Wall Street's estimates. Overall, this was a softer quarter, and most retailers seem to be feeling some pain from the macro and from tariffs. The stock traded down 7.4% to $10.35 immediately after reporting. American Eagle may have had a tough quarter, but does that actually create an opportunity to invest right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
