American Eagle Outfitters Inc. (NYSE:AEO) shares slipped after the clothing retailer’s quarterly sales came in short of estimates.
For the second quarter, revenue was a record $1.29 billion, up 8% year-over-year but shy of estimates of $1.31 billion.
American Eagle brand revenue was up 8% at $828 million while Aerie revenue grew 9% to $416 million.
Earnings per share of $0.39, however, were ahead of estimates of $0.38.
For the third quarter, AEO guided income in the range of $120 million to $125 million.
Revenue is expected to be flat or up slightly, in line with Street estimates of a 1% year-over-year increase to $1.32 billion.
For the full year, AEO raised its income outlook to the high end of its prior guidance, expecting between $455 million and $465 million.
Revenue is expected to be up 2% to 3%, on the lower end of Street expectations of 3.3% growth to $5.43 billion.
“Our Powering Profitable Growth strategy is off to a great start, locking in a strong first half and setting us on track to achieve the high end of our prior operating profit outlook for 2024,” AEO CEO Jay Schottenstein said in a statement.
“The second quarter marked our sixth consecutive quarter of record revenue and we successfully leveraged our cost base – advancing a number of strategic priorities to fuel growth across brands and channels and drive operating efficiencies.”
Shares of AEO traded down 3.3% at $21 in the early afternoon on Thursday.