American Eagle Outfitters Inc. (AEO)

Shares of American Eagle Outfitters Inc. (AEO) dropped by 15.80% from $19.75 to $16.63 in the trading on Tuesday, November 21. The reason why AEO is down today is due to the release of third-quarter reports by several major apparel retailers and department store chains ahead of the crucial holiday season.

• Mixed results: Despite seemingly strong third-quarter results, saw its stock fall. The company reported a 5% year-over-year growth in quarterly revenue to just over $1.3 billion, with earnings per share at $0.49, a 16.7% increase. Both figures exceeded analyst estimates. American Eagle also projected high-single-digit-percent sales growth for the fourth quarter of 2023. However, the company's guidance for fourth-quarter operating income was slightly below Wall Street's expectations.
• Investor Outlook for Retail Stocks: Many retailers are strategically positioning themselves for improved revenue and earnings growth in the future, given the uncertain macroeconomic environment. However, investors appear cautious and are hesitant to bet on retail turnarounds until tangible signs of improvement become more apparent. The market's reaction suggests concerns about near-term weakness in the critical holiday quarter for this retail company.

AEO's stock fell 11.93% after the company lowered its full-year outlook, even as it matched Wall Street’s quarterly earnings expectations and beat revenue expectations. The company reported quarterly earnings and revenue in line with expectations. Net income fell about 42% to $18.45 million, or 9 cents per share, compared with $31.74 million, or 16 cents a share, in the year-ago period. Total net revenue rose about 2% to $1.08 billion from the $1.06 billion it reported in the year-ago period.

https://www.cnbc.com/2023/05/24/american-eagle-outfitters-aeo-shares-plunge-after-earnings-report.html#:~:text=American%20Eagle%20Outfitters%20shares%20dropped,it%20reported%20a%20surprise%20profit.