Shares of American Eagle plummet 17% on unimpressive holiday forecast
Publishing timestamp: 2023-11-21 11:51:46
Summary
American Eagle beat estimates on earnings and revenue for its fiscal third quarter. However, the company issued a holiday forecast that failed to impress investors, causing its shares to plummet by about 17%. The forecast predicts high single-digit sales growth, which is ahead of analyst expectations, but the operating income is expected to be mostly below expectations. The company's performance in the apparel industry has been lackluster, despite a 5% increase in sales. Other retailers, such as Abercrombie & Fitch, have also reported disappointing forecasts. Retailers are concerned about tepid demand and have been issuing muted forecasts for the holiday season.
Sentiment: NEGATIVE
Keywords: earnings, american eagle outfitters inc, apparel retail, breaking news: business, business, lowe's companies inc, abercrombie & fitch co, best buy co inc, business news, retail industry, breaking news: earnings,
Source: https://www.cnbc.com/2023/11/21/american-eagle-aeo-earnings-q3-2023.html