American Eagle Outfitters Inc. (NYSE: AEO) is set to release its fiscal fourth-quarter financial results after the markets close on Wednesday. Thomson Reuters has consensus estimates that call for per-share earnings of $0.42 on $1.12 billion in revenue. The same period from the previous year had $0.36 in earnings per share on revenue of $1.07 billion.
Earlier this company released its sales numbers for the holidays. The company reported fourth-quarter same-store sales in January as up 4% year over year and that the company continues to forecast the quarter’s earnings at $0.40 to $0.42. This was not good enough for investors at the time.
American Eagle CEO Jay Schottenstein commented on the announcement:
Despite a very challenging macro-environment, we had a solid holiday season, driven by positive results in both our brands. The online business was particularly strong, and we leveraged our omni-channel tools to deliver an improved customer experience. I am extremely pleased with the steady progress made in 2015, with expected annual EPS growth of roughly 70%.
Retail stores catering to teens have had a tough year or so as more traditional retailers like American Eagle are losing ground to fast-fashion brands like H&M, Forever 21 and Zara. Warm weather during the final few months of 2015 also stunted sales of winter garb.
A few analysts weighed in on American Eagle prior to the release of its earnings:
- B. Riley reiterated a Buy rating with a $20 price target.
- BB&T downgraded to a Hold rating from Buy.
- Goldman Sachs lowered its price target to $13 from $15.
- JP Morgan raised its price target to $16 from $15.
So far in 2016, American Eagle has been relatively flat, with the stock only down about 1.5% year to date. Over the past 52 weeks, the stock is up 5%.
Shares of American Eagle were trading down 1.3% at $15.06 on Tuesday, with a consensus analyst price target of $18.25 and a 52-week trading range of $12.78 to $18.49.
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