American Eagle Outfitters Cuts Q2 Earnings Outlook

(RTTNews) - American Eagle Outfitters, Inc. (AEO) on Monday lowered its second quarter earnings outlook, citing weaker than expected sales and margin results.

The company said it now expects second quarter earnings of about $0.10 per share, compared to its prior guidance of $0.19 to $0.21 per share.

Analysts polled by Thomson Reuters currently expect the company to earn $0.21 per share for the second quarter.

The company said total net revenue decreased about 2% in the second quarter, while consolidated comparable sales, including AEO direct, decreased 7%.

Robert Hanson, Chief Executive Officer of American Eagle Outfitters, said, "We are not at all happy with our second quarter results, which were impacted primarily by a disappointing performance of our AEO women's assortment and weak traffic. Results were exacerbated by a highly promotional retail environment, which intensified over the course of July."

American Eagle Outfitters shars are currently losing 15.12% in after hours trading after closing the day's regular trading session at $19.97, down 8 cents.