ANF - Why American Eagle Stock Flopped Today
Throw another retailer onto the pile. After Abercrombie & Fitch (NYSE: ANF) reported its disastrous earnings Tuesday, fellow retail clothier American Eagle Outfitters (NYSE: AEO) reported its own earnings last night, and the news isn't much better here.
Expecting profits of $0.25 per share on sales of $1.14 billion, American Eagle disappointed investors when it reported just $0.16 in earnings per share on sales of $1.06 billion -- missing on both the top and bottom lines. And now its stock is down 5% as of 1:20 p.m. ET on Friday.
Give American Eagle credit, though: It fessed up to its sales miss in the second line of its earnings announcement last night, explaining that a shifting macro environment and weak consumer demand for clothing made for a challenging quarter. The company missed its sales targets, and that resulted in lower profit margins than expected, and worse profits on the bottom line.
For further details see:
Why American Eagle Stock Flopped Today