American Eagle Outfitters Profits Fall (AEO)

Pittsburgh, Pennsylvania based apparel and accessories retailer American Eagle Outfitters, Inc. AEO released financial results on Wednesday morning that met Wall Street earnings estimates, while just missing revenue expectations. American Eagle Outfitters, Inc. (AEO) announced that its 2nd quarter net income fell to $9.7 million, or 5 cents per share, down from $28.6 million, or 14 cents per share, a year earlier. The company reported income from continuing operations of 13 cents per share. Revenue rose to $652 million, up from $647 million a year earlier. According to a poll of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of 13 cents per share, on revenue of $653.99 million. The company said that it expects 3rd quarter earnings from continuing operations to be in the range of 23 cents to 26 cents per share. American Eagle Outfitters closed the previous trading day at $12.49 per share. The consensus price target of analysts covering the company's stock is $14.73 per share. Chief executive officer Jim O’Donnell said, “The second quarter was a challenging period, resulting in a miss to our sales and profit plans. Given the inconsistencies in business trends and unpredictable consumer behavior, we have intensified our actions to improve efficiencies, streamline our process and strengthen profitability. We are committed to driving change across the organization and delivering sustainable long-term growth.” Read more from Benzinga's Company news.