TSN - Why American Eagle Outfitters Tyson Foods and USA Technologies Slumped Today
Wednesday was a good day on Wall Street, as reduced international tensions helped to give market participants new hope that recent conflicts might get resolved favorably. Major indexes rose roughly 1%, indicating widespread gains. Yet some stocks weren't able to join in the rally due to company-specific bad news. American Eagle Outfitters (NYSE: AEO), Tyson Foods (NYSE: TSN), and USA Technologies (NASDAQ: USAT) were among the worst performers. Here's why they did so poorly.
Shares of American Eagle Outfitters dropped 12% after the apparel retailer reported its second-quarter financial results. Revenue climbed 8% to hit a record and rise above the $1 billion mark. However, comparable sales were up a more modest 2% from year-ago levels, and despite comps growth of 16% rise in the Aerie store concept, American Eagle's namesake stores saw comps fall 1% over the same period. The retailer said that seasonal issues related to the back-to-school season played a role in holding American Eagle back. The company's hopeful that the rest of the year will go well, but investors will have to wait to see if consumers help the retailer recover during the key holiday season.
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