American Eagle Outfitters shares plunge, as retailer lowers forecast

Shares of American Eagle Outfitters dropped on Wednesday in after-hours trading, as the company lowered its full-year outlook.

The company cut its forecast, even as it matched Wall Street’s quarterly earnings expectations and beat revenue expectations.

The mall retailer said it now expects operating income to range between $250 million and $270 million, below the $270 million to $310 million range it had predicted in March. It said it anticipates full-year revenue to be flat to down low single-digits, lagging the flat to up single-digits it projected before.

Shares plunged about 14% following the company’s earnings report after the market close.

American Eagle, which includes its namesake brand and the Aerie brand, diverged significantly from its competitor, Abercrombie & Fitch. Earlier on Wednesday, shares of Abercrombie shot up on its quarterly results and outlook.

Here’s how the company did for the three-month period that ended April 29 compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

• Earnings per share: 17 cents adjusted vs. 17 cents expected
• Revenue: $1.08 billion vs. $1.07 billion expected

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