American Eagle (AEO) reported earnings on Wed 17 May 17 (b/o)

** charts after earnings **

 

• American Eagle (AEO) misses 1Q profit forecasts, plans to accelerate store closings

The Pittsburgh-based American Eagle Outfitters (NYSE: AEO) shuttered three stores and opened six in the first quarter and estimated between 25 and 40 store closings for the fiscal year ending in April 2018, with between 32 and 37 stores opening across its various brands including the flagship AE brand and aerie women’s apparel location.

There were 1,053 stores as of April 29, up three overall from the beginning of the year. But that could be changing soon. One of the stores closed in January was in the SouthSide Works in Pittsburgh, about a block from American Eagle's corporate headquarters.

“We are looking to get more aggressive with store closings,” said CFO Bob Madore during American Eagle Outfitters’ first-quarter conference call with analysts.

American Eagle missed analyst expectations in the first quarter, with profit of $25.2 million, 14 cents a share, compared to $40.5 million, 22 cents a share, a year ago. Analysts polled by FactSet expected 17 cents a share profit.

There were apparently some layoffs in the first quarter at its Pittsburgh headquarters, although few details were disclosed. American Eagle reported a $5.4 million charge, 2 cents a share, that involved severance charges in what the company called a "home office restructuring" and its previously announced plan to close or convert company and owned stores overseas to licensed partnerships.