What's Going On With American Eagle Stock Thursday?

American Eagle Outfitters Inc AEO shares are trading lower Thursday after the company reported first-quarter financial results. Several analysts lowered price targets following the print.

• 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."

See Also: Abercrombie & Fitch Brand Has More Resilient Customer Base Than Peers: Analyst

Guidance: 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.

Analyst Changes:

• Telsey Advisory Group analyst Dana Telsey maintained AEO with a Market Perform and lowered the price target from $17 to $12.
• Barclays analyst Adrienne Yih maintained AEO with an Equal-Weight and lowered the price target from $13 to $11.
• Deutsche Bank analyst Gabriella Carbone maintained AEO with a Buy and lowered the price target from $17 to $14.
• BofA Securities analyst David Buckley maintained AEO with an Underperform and lowered the price target from $14 to $9.

AEO Price Action: American Eagle shares were down 12.9% at $10.51 at the time of publication, per Benzinga Pro.

Photo: Mike Mozart from Flickr.