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American Eagle Stock Drops After Lower-Than-Expected Revenue

In the quarter ended July 31, AEO revenue surged 35% to $1.19 billion, but that lagged the FactSet analyst consensus of $1.23 billion.
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Shares of American Eagle Outfitters Inc.  (AEO) - Get American Eagle Outfitters, Inc. Report dropped on Thursday after the apparel and accessories retailer posted quarterly revenue that trailed analyst expectations.

In the fiscal 2022 second quarter ended July 31, revenue surged 35% to $1.19 billion, but that lagged the FactSet analyst consensus of $1.23 billion.

American Eagle swung to net income of $121.5 million, or 58 cents a share, from a loss of $13.8 million, or 8 cents a share, in the year-earlier quarter. The FactSet consensus: 54 cents.

The latest adjusted earnings totaled 60 cents per share, topping the analyst consensus of 55 cents.

Store revenue jumped 73% from the year earlier's pandemic-depressed total, while digital revenue slid 5%, as shoppers returned to stores.

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Fly Carefully With American Eagle Outfitters: Real Money

American Eagle stock recently traded at $26.70, down 11%. It had risen 15% in the six months through Wednesday.

In July, Jim Cramer told Action Alerts PLUS Senior Analyst Jeff Marks that retailers including American Eagle and Levi Strauss  (LEVI) - Get Levi Strauss & Co. Class A Report have shaped his current view of the economic recovery.

In his column on Real Money, Cramer said that rather than attributing the shape of the recovery to a letter of the alphabet, he's looking at a check mark.

"The check mark is here and it seems that very few expected it or knew what to do with it, but those who did are crushing it like at no other time in their history," he wrote.

American Eagle Outfitters is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AEO? Learn more now.