Shares of apparel company American Eagle Outfitters (AEO -15.43%) plunged on Thursday after the company reported financial results for its fiscal third quarter of 2024. Sales are slow and management said the one word that investors didn't want to hear. Consequently, American Eagle stock was down 14% as of 1:20 p.m. ET.Why investors got spooked todayIn Q3, which ended Nov. 2, American Eagle had total net revenue of nearly $1.3 billion. This was marginally down year over year even though same-store sales were ...

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Core Insights - American Eagle Outfitters' shares fell sharply after the company reported third-quarter results that missed analyst expectations and provided a fourth-quarter outlook that was also below expectations [1][2][3] Financial Performance - The company reported a year-over-year revenue decline of approximately 1% to $1.29 billion and a net income of $80 million, which is down nearly 20% from the previous year. Analysts had anticipated revenue of $1.3 billion and profits of $92.16 million [3] - After accounting for a nearly $13 million restructuring charge related to severance costs and the sale of its Hong Kong business, the adjusted net income was $93 million, surpassing the analysts' expectation of $91.54 million [4] Sales and Outlook - Comparable store sales grew by 3%, slightly below the expected 3.2% growth [5] - For the fourth quarter, the company guided comparable store sales to increase by 1%, while projecting a 4% decline in revenue, which is larger than the 3.8% drop that analysts had forecasted [6] Market Reaction - Following the earnings report, American Eagle's shares dropped by 13.3% to $17.81, marking a nearly 16% decline since the beginning of the year [7]

American Eagle Outfitters (AEO) reported $1.29 billion in revenue for the quarter ended October 2024, representing a year-over-year decline of 0.9%. EPS of $0.48 for the same period compares to $0.49 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.3 billion, representing a surprise of -1.19%. The company delivered an EPS surprise of +4.35%, with the consensus EPS estimate being $0.46.While investors closely watch year-over-year changes in headline numbers -- revenue and earnin ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2024 was $1.3 billion, down 1% year-over-year, impacted by a $45 million headwind related to the retail calendar [34] - Adjusted operating income was $124 million, at the high end of guidance, with an adjusted operating margin of 9.6%, flat compared to last year [35][41] - SG&A expenses decreased by 3% quarter-over-quarter, leveraging 50 basis points as a rate of sales [37][38] - Ending inventory cost was up 5% year-over-year, indicating healthy positioning for the holiday season [39] Business Line Data and Key Metrics Changes - American Eagle achieved a 3% comparable sales increase, marking its sixth consecutive quarter of growth [26] - Aerie recorded a 5% comp growth, building on a 12% growth last year, with expectations for continued revenue growth [21][22] - Aerie's apparel category saw its seventh consecutive quarter of double-digit growth, particularly in Soft Dressing and Activewear [22][23] Market Data and Key Metrics Changes - The company experienced positive momentum across brands and channels, despite some demand choppiness [8] - The retail calendar shift and adverse weather conditions impacted sales performance, particularly in September and October [68][95] - The strengthening US Dollar has created currency pressure, particularly affecting the business in Mexico [86][88] Company Strategy and Development Direction - The company is focused on its "powering profitable growth" strategy, aiming for long-term growth and operational efficiency [7][8] - Strategic initiatives include amplifying brand presence, optimizing operations, and executing with financial discipline [12][14] - The company plans to open 45 new Aerie stores next year, significantly increasing its footprint compared to only four openings this year [51][140] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding fourth-quarter demand outlook, adjusting guidance to reflect potential challenges [17][43] - Positive customer response was noted during key selling periods, including Thanksgiving and Black Friday, with record store performance [42][112] - The company remains optimistic about its strategic direction and the potential for growth across its brands [30][41] Other Important Information - The company ended the quarter with $160 million in cash and no debt, maintaining a strong balance sheet [15][40] - Capital expenditures for the third quarter totaled $60 million, with full-year spending expected to be between $225 million and $245 million [39] Q&A Session Summary Question: Can you speak to the progression of demand into the fourth quarter at Aerie? - Management noted that Aerie saw record revenues in Q3 and is cautiously optimistic about new categories like sleep and swim for future growth [50][51] Question: What are your expectations for promotions in the fourth quarter? - The company plans to maintain similar promotional levels to last year, with inventory well-positioned across brands and categories [58][59] Question: Can you elaborate on the choppiness in demand? - Management attributed the choppiness to weather conditions and the retail calendar shift, but noted strong performance during peak periods [68][95] Question: How is the Intimates business performing? - The Intimates category is down industry-wide, but the company is holding its share and seeing improvements in demand trends [102][104] Question: What is the impact of the new administration on tariffs? - The company has flexible sourcing capabilities and is prepared to adapt to any changes in tariff policies [148][149] Question: What are the plans for store openings next year? - The company plans to open approximately 45 new Aerie and OFFLINE stores, while American Eagle may see a net closure of around 20 stores [155][161]

American Eagle Outfitters (AEO) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.35%. A quarter ago, it was expected that this teen clothing retailer would post earnings of $0.38 per share when it actually produced earnings of $0.39, delivering a surprise of 2.63%.Over the last four ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 2, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-33338 American Eagle Outfitters, Inc. (Exact name of registrant as specified in its charter) Delaware No. 13-2721761 (State or other jurisdiction of incorporation or organi ...

Exhibit 99.1 AEO Inc. Reports Third Quarter Growth Across Brands Reflecting Strong Execution on Powering Profitable Growth Plan • Aerie achieved all-time high third quarter revenue with comps up 5%, following 12% reported comp growth last year • American Eagle comps increased 3%, following 2% reported comp growth last year • Operating Income was $106 million. Adjusted Operating Income of $124 million reflected an Adjusted Operating Margin of 9.6% • Annual outlook updated; Remain on track to deliver mid-teen ...

American Eagle Outfitters, Inc. (AEO) is expected to register top-line growth when it reports third-quarter fiscal 2024 results on Dec. 4. The Zacks Consensus Estimate for revenues is pegged at $1.30 billion, which indicates a rise of 0.3% from the year-ago figure.The consensus estimate for earnings is pegged at 46 cents per share, indicating a 6.1% drop from the year-ago quarter's number. The Zacks Consensus Estimate for earnings has moved down a penny in the past 30 days.The company’s earnings beat the co ...

Wall Street analysts expect American Eagle Outfitters (AEO) to post quarterly earnings of $0.46 per share in its upcoming report, which indicates a year-over-year decline of 6.1%. Revenues are expected to be $1.3 billion, up 0.3% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a compan ...