WASHINGTON (dpa-AFX) - Shares of American Eagle Outfitters Inc. (AEO) slipped 6% on extended session Tuesday after the apparel retailer's holiday season outlook fell short of Wall Street expectations.
American Eagle Outfitters third-quarter profit rose to $85.5 million or $0.48 per share from $63.7 million or $0.36 per share last year.
Analysts had expected the company to earn $0.48 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
Revenues for the quarter rose 5% to $1.00 billion from $960.4 million last year. Analysts had a consensus revenue estimate of $1.02 billion for the quarter.
Comparable sales increased 8% over the comparable period ending November 4, 2017, following a 3% increase last year.
The gross margin increased 80 basis points to 39.8% of revenue, while, as a rate to revenue, SG&A rose 220 basis points to 24.8%.
CEO Jay Schottenstein commented, 'I am proud to announce another outstanding performance this period for AEO, marking record sales and our first $1 billion third quarter. American Eagle and Aerie had extremely well-executed back-to-school and fall seasons, fueling strong sales across stores and double-digit growth in digital, on lower promotional activity across channels.'
Looking forward to the fourth quarter, American Eagle Outfitters expects earnings of $0.40 to $0.42 per share. Analysts currently estimate earnings of $0.46 per share.
AEO closed Tuesday's trading at $19.03, down $0.49 or 2.51%, on the NYSE. The stock further slipped $1.08 or 5.68% in the after-hours trade.
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