American Eagle Outfitters (AEO) 4th Quarter Core Sales Likely to Miss Expectations


While holiday sales were quite brisk for companies like Amazon, it’s some of the store front retailers who seem to be suffering at their expense. Today American Eagle Outfitters (NYSE:AEO) joined Gap in reporitng numbers which were lower than most anaylysts had been expecting for the holiday season.

The company warned today that they will likely miss expectations for core business sales for the fourth quarter on weaker than expected holiday sales. While American Eagle Outfitters (NYSE:AEO) reported same-store sales which are 4% higher this year, Analysts on average had been expecting a rise of around 4.7%. Shares of American Eagle Outfitters (NYSE:AEO) are trading down $1.83 or 11.52% in pre-market trading this morning as investors reevaluate the company’s growth prospects.

The stock closed at $15.88 during the last trading session. It is down 6.09% since June 4, 2015 and is downtrending. It has underperformed the S&P500 by 1.40%.

From a total of 12 analysts covering American Eagle Outfitters (NYSE:AEO) stock, 8 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $24 while the lowest target price is $14. The mean of all analyst targets is $19.18 which is 20.78% above today’s ($15.88) stock price. American Eagle Outfitters was the topic of 20 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Oppenheimer downgraded shares on November 30 to a “Perform” rating. Sterne Agee CRT maintained shares with a”Hold” rating and a $17 target share price in their report from an August 20. Piper Jaffray upgraded AEO stock in a recent report from November 3 to a “Overweight” rating. Wolfe Research initiated the rating on August 18. Wolfe Research has a “Outperform” rating and a $22 price target on shares. Finally, Cowen & Co maintained the stock with a “Outperform” rating in a report they issued on a September 17.

American Eagle Outfitters, Inc. is an apparel and accessories retailer. The company has a market cap of $3.09 billion. The Firm offers clothing, accessories and personal care products. It has 15.49 P/E ratio. The Firm operates under the American Eagle Outfitters and aerie by American Eagle Outfitters brands.