American Eagle Outfitters and Aeropostale released their latest earnings reports tonight. All eyes have been on the retail industry this time around as the entire sector has struggled, particularly luxury retailers, most of which are losing out to big box and budget retailers. Nordstrom’s earnings results in particular caused an uproar on Wall Street as the retailer disappointed by a wide margin.
American Eagle shares rise after results
American Eagle reported adjusted earnings of 35 cents per share, which was a penny ahead of consensus, and $919 million in revenue, which missed the expectation of $924.4 million. In last year’s third quarter, adjusted earnings were 22 cents per share, while revenue was $854 million. Comparable store sales increased 9% year over year, compared to last year’s 5% decline for the quarter. Gross profit climbed 17% to $368 million, while total inventory increased 2% to $480 million.
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American Eagle expects fourth quarter earnings to be between 40 cents and 42 cents per share, which is right in line with the consensus at 41 cents per share. The retailer expects comparable store sales to increase by the mid-single digits.
Shares of American Eagle Outfitters moved higher by as much as 2.82% to $16.25 per share in after-hours trades following tonight’s earnings report.
Aeropostale also rises after earnings report
Aeropostale posted adjusted losses of 33 cents per share and revenue of $363.3 million. Analysts had been expecting losses of 34 cents per share and $392.67 million in revenue. In last year’s third quarter, the struggling clothing retailer reported losses of 45 cents per share on $452.9 million in revenue. Comparable store sales, including e-commerce sales, declined 10% year over year.
The retailer expects fourth quarter losses to be between 17 cents and 4 cents per share, a wide miss from the consensus estimate of 2 cents per share in earnings.
Shares of Aeropostale rose by as much as 2.28% to 60 cents per share in after-hours trades following tonight’s earnings report.