American Eagle Outfitters Inc (NASDAQ:AEO) shares are tumbling after the close Wednesday on the heels of the company’s first-quarter results.
- Q1 Revenue: $1.08 billion beat estimates of $1.07 billion
- Q1 EPS: 17 cents in line with estimates
Store revenue was up 5% year-over-year, while digital revenue declined 4%. Inventories fell 8% year-over-year as the company continued to focus on stock levels.
“With ongoing macro challenges, we are maintaining a clear focus on inventory discipline, cost savings and efficiencies across the business,” said Jay Schottenstein, executive chairman and CEO of American Eagle.
“Looking forward, our priority is to rebuild operating margins, while also seeking opportunities for profitable growth and to deliver more consistent shareholder returns.”
Outlook: American Eagle said it plans to stick to its inventory plans and expects second-quarter sales to be below trend. Revenue is expected to be down low-single digits year-over-year with operating income in the range of $25 million to $35 million.
Full-year revenue is expected to be in the range of flat to down low-single digits. Full-year operating income is expected to be between $250 million and $270 million.
See Also: Abercrombie & Fitch Brand Has More Resilient Customer Base Than Peers: Analyst
AEO Price Action: American Eagle shares were down 15.7% after hours at $10.17 at the time of publication, per Benzinga Pro.
Photo: Mike Mozart from Flickr.
