A weak sales outlook offset slightly better-than-expected fourth-quarter adjusted profits for American Eagle Outfitters Inc (NYSE:AEO), sending the clothing retailer’s shares lower in early New York trading.
For the quarter to January 28, American Eagle’s earnings fell to US$54.6mln, or 30 US cents a share, down from US$81.7mln, or 42 US cents a share a year earlier, as revenues fell by 1% to US$1.1bn.
Excluding one off items, the stores group’s adjusted earnings per share was 39 US cents, just above the consensus forecast of 38 US cents.
American Eagle said its same-store sales “were up slightly” in the fourth-quarter, following a 4% increase a year earlier, with the consensus estimate for 0.4% growth.
The Pittsburgh-based company added that it expects its same-store sales to be flat to a low single-digit decline in the first quarter of 2017, compared with the consensus forecast 0.8% growth.
The group is forecasting earnings in the range of 15 to 17 US cents per share for the first quarter, compared to 22 US cents a share during the same period a year earlier.
In early Wall Street trading, American Eagle’s shares were down 6.6% at US$14.80.
Story by ProactiveInvestors