American Eagle profit soars, but sales grow slower than expected
American Eagle on Wednesday said it’s making gains in boosting profitability as it works to improve its product assortment and tweak operations.
American Eagle on Wednesday said it’s making gains in boosting profitability as it works to improve its product assortment and tweak operations. Still, its fiscal first-quarter sales came in weaker than Wall Street expected.
While revenue came in slightly below estimates, it was 6% higher than the year ago period and marked a new record for the company, it said in a news release.
Shares fell about 5% in extended trading on Wednesday.
Here’s how the apparel company did compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:
The company’s reported net income for the three-month period that ended May 4 nearly quadrupled compared to the year ago period. American Eagle posted net income of $67.8 million, or 34 cents per share, compared with $18.5 million, or 9 cents per share, a year earlier.
Rating: 5