American Eagle (AEO, Financial) shares fell by more than 13.4% to $17.78. The company's third-quarter earnings report revealed a 1% year-over-year decline in sales to $1.29 billion, slightly below the expected $1.3 billion. This marks the third consecutive quarter of missed expectations. Net profit dropped 17% to $80 million. Excluding one-time costs related to restructuring and impairment, adjusted earnings per share were $0.48, surpassing the forecast of $0.46.
Looking ahead, American Eagle anticipates a 1% increase in same-store sales during the holiday quarter, but overall sales are expected to decline by about 4%, which is below the anticipated 2.2% growth in same-store sales and a 1% decrease in total sales.
