HotPennyStockNews.com is devoted to fetch you the most exclusive stocks in the market today. Apart from scanning the markets for the most underrated stocks. We propel those victors directly to your email inbox first ahead of the rest of the marketplace gets a prospect.
Los Angelas, CA -- (SBWIRE) -- 03/06/2013 -- American Eagle Outfitters Inc.'s (NYSE:AEO) fiscal fourth-quarter earnings jumped 85% as the teen retailer reported higher revenue, though a weak start to the year sent shares tumbling.
Shares fell 9.3% to $20.45 in recent pre-market trading as the company guided for per-share first-quarter earnings below analysts estimates and said it expects same-store sales for the quarter in the negative mid-single digit range. The stock is up 54% in the last 12 months.
Citing macroeconomic headwinds and unfavorable weather affecting consumer spending in February, American Eagle forecast per-share earnings of 16 cents to 19 cents for the current quarter. Analysts polled by Thomson Reuters were recently looking for 25 cents a share.
The company also said its board authorized a new share repurchase program of 20 million shares and raised the quarterly cash dividend to 12.5 cents a share, a 14% increase. The company recently had about 198 million shares outstanding, according to FactSet.
Teen retailers like American Eagle have been operating in an intensely competitive environment marked by bargain-hunting consumers, deep promotions, and the rise of fast-fashion peers like Swedish retailer Hennes & Mauritz AB (HM-B.SK), known as H&M, and Forever 21 Inc.
American Eagle, for its part, has emerged as a key destination for fashion-conscious teens and standout in the teen sector. But it could be harder for American Eagle to maintain its fashion edge over other teen retailers, like high-end peer Abercrombie & Fitch Co. (ANF) and bargain player Aeropostale Inc. (ARO), going forward. Abercrombie, for one, is working to regain its footing as it slowly brings in more fashion, such as colored bottoms and woven tops, to its offerings and reins in inventory. In February, Abercrombie reported fiscal fourth-quarter earnings surged, though it guided for a weak start to the fiscal year.
For the quarter ended Feb. 2, American Eagle reported a profit of $94.8 million, or 47 cents a share, up from $51.3 million, or 26 cents a share a year earlier. Excluding a four-cent per-share tax benefit and restructuring and store impairment charges of 12 cents a share, earnings were 55 cents a share compared with 39 cents. The company in January had reiterated its forecast for earnings of 54 cents to 56 cents a share.
Net sales rose 8.6% to $1.12 billion, while same-store sales rose 4%, including sales from its online stores, compared with an 11% increase for the year-ago period. The company in January had forecast same-store sales growth in the mid single-digits, while analysts forecast net sales of $1.12 billion.
Should Investor Invest Money In AEO Or Wait: CLICK HERE
Neither HotPennyStockNews.com nor its owners, operators, affiliates or anyone disseminating information on its behalf is registered as an Investment Advisor or broker dealer in any jurisdiction whatsoever and none of the information provided by HotPennyStockNews.com, owners, operators, affiliates or anyone disseminating information on its behalf should be construed as investment advice or an investment recommendation. HotPennyStockNews.com makes no recommendation that the securities of the companies profiled should be purchased, sold or held by individuals or entities that learn of the profiled companies through HotPennyStockNews.com. Investing in securities is speculative and carries a high degree of risk and no investment should be made unless you can afford to lose your entire investment. It is possible that an investor's entire investment may be lost or impaired due to the speculative nature of the companies profiled. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein..
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-321-1250 (International)