American Eagle missed sales targets for a second quarter in a row but its profits were 60% higher as inflationary costs begin to tick down.
American Eagle delivered mixed quarterly results that beat Wall Street's profits expectations but fell short of its sales targets.
Sales rose to $1.29 billion, up about 8% from $1.2 billion a year earlier. That sales gain would have been slimmer had it not been for a calendar shift, which positively impacted second-quarter sales by $55 million.American Eagle's gross margin came in at 38.6% — 0.9 percentage points higher than the prior year and in line with what analysts had expected.
For the current quarter, American Eagle expects comparable sales to grow between 3% and 4%, which is better than the 2.8% growth that analysts had expected the company to forecast, according to StreetAccount. For the year, the company expects comparable sales to increase approximately 4%, with total revenue up 2% to 3%, shy of what analysts had expected. Wall Street was expecting its full-year comparable sales forecast to be up 4.2% and overall sales to be up 3.5%, according to StreetAccount and LSEG.for the back half of the year as it awaits interest rate decisions from the Federal Reserve and prepares for"noise" around the upcoming presidential election.
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