/American Eagle Stock Drops As Sales Miss, After Abercrombie & Fitch Earnings Crushes Views

American Eagle Stock Drops As Sales Miss, After Abercrombie & Fitch Earnings Crushes Views

American Eagle Outfitters (AEO) missed sales estimates and same-store sales growth slowed. American Eagle stock fell after hours. Abercrombie & Fitch (ANF) earnings easily beat fourth-quarter views Wednesday, continuing a turnaround for the youth apparel chain. Abercrombie stock spiked in Wednesday’s session.


American Eagle Earnings Decline

American Eagle earnings came in at 43 cents vs. 52 cents a year ago, or adjusted EPS of 44 cents. Revenue increased 1% to $1.24 billion.

Analyst had expected EPS of 42 cents on revenue of $1.27 billion, according to Zacks Investment Research.

In Q4, American Eagle brand same-store sales increased 3%, down from 5% a year ago. Aerie brand same-store sales rose 23%, down from 34%.

For Q1 2019, the retailer sees EPS of 19-21 cents, below views for 25 cents.

American Eagle stock fell 4.4% after hours. Shares had closed up 4.4% at 21.25 in the regular session, holding above the 50-day line.

Abercrombie Earnings Easily Beat

Abercrombie earnings fell 2% to $1.35 per share, but that beat views by 22 cents. Sales fell 3% to $1.16 billion, edging past estimates for $1.14 billion.

Same-store sales jumped 3%, double expectations. Digital sales topped $1 billion for the full year.

In Q4, Abercrombie brand sales declined 9% to $442.7 million. But the much-larger Hollister brand saw sales rise 1% to $712.9 million. U.S. sales grew 1% to $778.5 million, while international sales plunged 10% to $377.1 million.

For the full year, Abercrombie earnings leapt to $1.15 a share vs. 65 cents in 2017 and a six-cent loss in 2016.

“Our transformation initiatives are gaining traction,” CEO Fran Horowitz said. The company is on track to meet fiscal 2020 targets, she added.

Abercrombie stock gapped up 20% to 25.70 in the stock market today, making a decisive move above the 50-day line. Shares are working on a 29.79 consolidation buy point.

The relative strength line spiked to its best level since late August after going sideways for several months. The RS line, the blue line in the chart below, tracks a stock’s performance vs. the S&P 500 index.

Urban Outfitters Stock

Late Tuesday, Urban Outfitters (URBN) earnings topped views and its profit margins improved. But the retailer gave a cautious outlook for 2019.

Urban Outfitters stock closed down 0.1% at 30.32 after an early rally hit resistance at a declining 50-day line. Shares are near a 15-month low.


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