American Eagle Outfitters earnings: Stock drops after missing on guidance

People pass an American Eagle Outfitters clothing store, in New York.AP Photo/Mark Lennihan

American Eagle Outfitters dropped more than 13% in pre-market trading on Wednesday after the retailer reported a disappointing guidance for the third quarter.

American Eagle said it earned $0.34 a share in second quarter, topping the Wall Street consensus by $0.04, according to Bloomberg data. The retailer said second-quarter sales totaled $965 million, surpassing the $937 million that was anticipated. Comparable sales grow 9%, better than the 6.4% increase that was expected.

 “The second quarter results exceeded our expectations, delivering record sales and 79% growth in adjusted earnings,” CEO Jay Schottenstein said in the earnings release. 

“This marked our 14^th consecutive quarter of comparable sales growth, with the American Eagle and Aerie brands posting positive results across both stores and e-commerce.”

Looking ahead, the company sees its adjusted third-quarter earnings per share between $0.45 and $0.47, worse than $0.49 that analysts polled by Bloomberg were expecting. That forecast excludes any potential asset impairment and restructuring charges.. 

Shares of American Eagle Outfitters were up 30% this year through Tuesday.

Ethel Jiang/Business Insider