American Eagle Goes on Sale

American Eagle Outfitters (AEOS Quote - Cramer on AEOS - Stock Picks) said both second-quarter total revenue and same-store sales rose more than 20%, and the company offered guidance that would meet Wall Street's estimates, but that wasn't enough for investors.

Following its latest financials and forecast Tuesday, shares of American Eagle were getting a 9.4% markdown, trading lower by $2.88 to $27.84.

For the quarter ended July 30, total sales increased 29.8% to $513.3 million from $395.4 million a year ago. Comp sales rose 21.1% from the same quarter in 2004.

The Warrendale, Pa., seller of jeans, plaid shirts and cargo shorts posted earnings for the quarter of $58 million, or 37 cents a share, vs. net income of $29.3 million, or 20 cents a share, last year, which included a 2-cent loss from discontinued operations.

American Eagle projected third-quarter earnings of 45 cents to 46 cents a share, up from EPS of 39 cents in the prior year.

Thomson First Call carries consensus profit estimates of 36 cents for the third quarter and 46 cents for the fourth quarter.