Latest news with #AmericanEagleOutfitters
Time of India
3 days ago
- Business
- Time of India
American Eagle Outfitters reports bigger-than-expected loss, forecasts downbeat revenue
HighlightsAmerican Eagle Outfitters reported a wider-than-expected quarterly loss, leading to an 8% decline in shares, as rising input costs and sluggish demand impact their revenue forecast. The company expects second-quarter revenue to decline by 5%, exceeding analysts' estimates of a 4.04% drop, amid consumer financial constraints affecting non-essential purchases. Despite American Eagle Outfitters' struggles, Abercrombie & Fitch reported positive results, driven by strong demand for its Hollister brand among younger shoppers. American Eagle Outfitters forecast second-quarter revenue below estimates after reporting a wider-than-expected quarterly loss on Thursday, due to rising input costs and sluggish demand. Shares of the company, which withdrew its fiscal 2025 forecasts earlier this month amid tariff uncertainty, fell about 8% after the bell. Consumers grappling with financial constraints are avoiding non-essential purchases, including apparel and accessories, which in turn has hurt demand for clothing brands such as American Eagle Outfitters. Comparable sales in the company's American Eagle brand declined 2%, while those for its Aerie brand dropped 4%, compared to a year ago. Meanwhile, fears of a surge in product prices, sparked by U.S. President Trump's unpredictable tariff shifts, have rattled businesses and consumers worldwide. Peer Abercrombie & Fitch, however, reported an upbeat quarter, driven by robust demand for its Hollister brand among younger shoppers. American Eagle Outfitters now expects second-quarter revenue to decline by 5%, compared with analysts' estimates of a 4.04% drop, according to data compiled by LSEG. Total inventory as of the quarter ended May 3 fell 5% to $645 million, with unit numbers also down 5%. The owner of the Aerie brand, which took a $75 million inventory charge on its spring and summer collection, saw further margin pressure from increased in-season discounts and advertising expenses. Its quarterly gross margin dropped to 29.6% from 40.6% a year ago. The company reported a quarterly adjusted loss of 29 cents per share, versus analysts' estimates of a loss of 22 cents per share.
Yahoo
3 days ago
- Business
- Yahoo
American Eagle's Q1 loss, Unity upgraded to Buy
Yahoo Finance host Josh Lipton tracks today's top moving stocks and biggest market stories in this Market Minute, including a Bloomberg report stating that the Trump administration could broaden its trade restrictions on China's tech sector, American Eagle Outfitters (AEO) reporting a revenue decline on top of a larger-than-expected loss in its first quarter figures, and Jefferies analysts upgrading Unity Software (U) stock to a Buy rating. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. Sign in to access your portfolio
Yahoo
4 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
Reuters
4 days ago
- Business
- Reuters
American Eagle Outfitters reports bigger-than-expected loss, forecasts downbeat revenue
May 29 (Reuters) - American Eagle Outfitters (AEO.N), opens new tab forecast second-quarter revenue below estimates after reporting a wider-than-expected quarterly loss on Thursday, due to rising input costs and sluggish demand. Shares of the company, which withdrew its fiscal 2025 forecasts earlier this month amid tariff uncertainty, fell about 8% after the bell. Consumers grappling with financial constraints are avoiding non-essential purchases, including apparel and accessories, which in turn has hurt demand for clothing brands such as American Eagle Outfitters. Comparable sales in the company's American Eagle brand declined 2%, while those for its Aerie brand dropped 4%, compared to a year ago. Meanwhile, fears of a surge in product prices, sparked by U.S. President Trump's unpredictable tariff shifts, have rattled businesses and consumers worldwide. Peer Abercrombie & Fitch, however, reported an upbeat quarter, driven by robust demand for its Hollister brand among younger shoppers. American Eagle Outfitters now expects second-quarter revenue to decline by 5%, compared with analysts' estimates of a 4.04% drop, according to data compiled by LSEG. Total inventory as of the quarter ended May 3 fell 5% to $645 million, with unit numbers also down 5%. The owner of the Aerie brand, which took a $75 million inventory charge on its spring and summer collection, saw further margin pressure from increased in-season discounts and advertising expenses. Its quarterly gross margin dropped to 29.6% from 40.6% a year ago. The company reported a quarterly adjusted loss of 29 cents per share, versus analysts' estimates of a loss of 22 cents per share. Its quarterly net revenue declined 4.7% to $1.09 billion, from a year ago. Analysts estimated a drop of 4.34% to $1.09 billion.
Yahoo
4 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
