American Eagle Outfitters beats Q3 forecasts, shares fall By

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American Eagle Outfitters (NYSE:), the popular apparel retailer, reported a strong performance in its third fiscal quarter of 2023, with revenues reaching $1.30 billion and earnings per share (EPS) of $0.49. This impressive outcome was fueled by robust same-store sales growth and the continued success of the company’s Aerie brand.

The retailer’s gross margin saw a notable increase to 41.8%, up from 38.7% in the previous year, reflecting a solid improvement in profitability. Despite a general downturn in retail foot traffic, American Eagle has expanded its physical presence to 1,199 stores, adding 20 new locations over the past year.

Jay Schottenstein, CEO of American Eagle, attributed the company’s recent successes to strategic initiatives and a steadfast commitment to operational excellence. However, he also acknowledged that the updated full-year guidance fell short of analyst expectations.

Following the announcement today, American Eagle’s shares experienced a significant drop, closing down 12.8% at $17.22 per share. Nonetheless, with a market capitalization of $3.9 billion and over $240 million in reserve cash, the retailer is in a strong position to pursue future growth opportunities. These include enhancing their omnichannel presence to better compete in an online shopping landscape that increasingly values digital experiences.

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