American Eagle Shares Drop 11% After Flagging Falling Sales in Core Women's Category
Summary
American Eagle Outfitters reported a 2% decline in same-store sales for its namesake brand, specifically in the women's category, which management called unsatisfactory. This detail emerged during the Q1 earnings call, despite the company beating overall revenue and profit expectations, largely due to strong 25% same-store sales growth at its Aerie brand. The market reacted negatively, sending shares down 11% after-hours. Management is now focused on improving assortments and productivity in the women's category, particularly denim, ahead of the crucial back-to-school season.
At the time of this announcement, AEO was trading at $16.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $3B. The 52-week trading range was $9.27 to $28.46. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.