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

Jacobs Solutions

05/12/2024 15:41

(Updates)
    ** Shares of American Eagle Outfitters  AEO.N  fall as much
as 17.5% to $16.94
    ** Co 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;))