ANF - Why American Eagle Outfitters Is Down Nearly 8% Today
Shares of apparel retailer American Eagle Outfitters (NYSE: AEO) are 7.7% lower as of 2:30 p.m. ET Tuesday, according to data from S&P Global Market Intelligence , upended by even more extreme weakness from a rival retailer's stock.
Don't look for a company-specific reason American Eagle Outfitters is being punished today. You won't find it. Rather, look to peer and rival Abercrombie & Fitch (NYSE: ANF) for the cause. Abercrombie shares are down more than 30% on Tuesday in response to a first-quarter loss that fell well short of expectations. Higher costs are a particular problem.
The retailer went on to warn shareholders that the current year will also be disappointing in terms of sales. Abercrombie & Fitch estimates 2022's top line will be flat to only 2% better than last year's revenue, while operating profit margin rates will roll in between 5% and 6%. Both outlooks are lower than the company's previously suggested metrics for both ranges, while the sales growth outlook is below the analyst consensus of 3.5%.
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Why American Eagle Outfitters Is Down Nearly 8% Today