American Eagle Outfitters stock drops as Q2 revenue misses analyst estimate

By Steve Gelsi

Retailer expects 2024 operating income of $455 million to $465 million, below the analyst projection of $469 million

American Eagle Outfitters Inc.'s stock fell 3% on Thursday after the retailer's second-quarter revenue missed analyst expectations, and it warned its full-year profit will also fall short of Wall Street projections.

American Eagle Outfitters (AEO) said it expects fiscal 2024 operating income of $465 million, below the FactSet consensus estimate of $469 million.

The Pittsburgh-based clothing-store chain said its second-quarter profit climbed to $77.26 million, or 39 cents a share, from $48.57 million, or 25 cents a share, in the year-ago quarter.

Analysts were expecting earnings of 38 cents a share.

Revenue rose to $1.29 billion from $1.2 billion, below the analyst estimate of $1.31 billion.

American Eagle Outfitters' stock fell $1.78 to $19.92.

CFRA analyst Zachary Warring upgraded American Eagle Outfitters to neutral from sell and reiterated a $20 price target on the stock. Among the data points he cited was the retailer's gross profit margin growth of 0.9% to 38.6% due primarily to favorable product costs, Warring said.

Including Thursday's moves, American Eagle Outfitters stock has fallen about 0.9% in 2024, compared to an 18.2% rise by the S&P 500 SPX.

-Steve Gelsi

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08-29-24 1053ET

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