BUZZ-American Eagle slumps on annual sales target cut, J.P Morgan downgrade

Reuters
2024-12-05
BUZZ-American Eagle slumps on annual sales target cut, J.P Morgan downgrade

** Shares of American Eagle Outfitters AEO.N fall ~16% to $17.30 premarket

** Lowered annual comparable sales forecast after market close on Wednesday signaling uncertain apparel demand during holiday shopping season

** Expects annual comparable sales growth of about 3% vs. prior expectation of ~4% rise

** Q3 revenue of $1.29 bln misses estimates of $1.30 bln, while adjusted EPS of 48 cents beat by 2 cents - data compiled by LSEG

** J.P. Morgan downgrades stock to "neutral" from "overweight", noting "choppy" November-to-date period except Black Friday and downbeat Q3 results; cuts PT by $4 to $23

** Telsey Advisory Group finds women's and Aerie banner traction and offline's strong growth encouraging, but notes there is work to be done on the men's and customer retention

** Two of 11 brokerages rate the stock "buy" or higher, eight "hold" and one "sell" or lower; with a median PT of $20.50

** Up to Wednesday's close, stock has fallen ~3% YTD

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))

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