Investors Sour on American Eagle
American Eagle’s (NYSE:AEO) moves to revamp its product lines and supply chain under new Chief Executive Robert Hanson appear to be paying off.
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Sales for the first quarter increased 18 percent to $719 million. Net income rose to $39.7 million (20 cents a share) against $28.3 million (14 cents a share) last year.
The good results did not, however, rub off on the share price, which fell 2.5 percent in pre-market trading due to the company’s lackluster full-year forecast of earnings per share of $1.16 to $1.22 a share, whereas analysts expected $1.18 a share.
As a part of its restructuring, the company has also decided to shut down its 77kids unit and is looking for a new chief financial officer.
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