American Eagle Outfitters' (NYSE: AEO) stock recently plunged to a 52-week low after the apparel retailer posted its second-quarter earnings. It topped Wall Street's estimates, but its growth was buoyed by a one-time gain, and it offered mediocre guidance for the third quarter.
AEO's revenue rose 8% annually to $1.04 billion, beating expectations by $40 million. But excluding a $40 million boost in licensing royalties from Japan, its revenue would have risen only 4% and matched analysts' expectations. AEO plans to terminate that deal and explore other options for growth in Japan.
Image source: American Eagle.