American Eagle Outfitters stock surged over 19% after beating Q3 estimates with strong demand, raising analyst targets and expectations for the holiday season, amid a broader retail earnings week and increased holiday e-commerce spending.
American Eagle Outfitters reported a slight decline in revenue for Q2 FY25 but exceeded expectations, driven by higher demand and well-managed expenses. The company's Aerie line saw a 3% increase in comparable sales, while overall gross margin improved slightly. Tariff impacts increased inventory costs, and the company anticipates continued challenges from tariffs in upcoming quarters. Despite this, the company remains optimistic about its fall season and long-term growth, with plans for share buybacks and stable sales projections.
American Eagle Outfitters, Five Below, and MicroStrategy are among the stocks experiencing significant premarket movements. These shifts are drawing attention from investors as they assess market trends and company performances.
American Eagle Outfitters has lowered its annual comparable sales growth target from 4% to 3% due to anticipated erratic apparel demand during the holiday season, causing a 14% drop in its shares. The company faces increased competition and consumer caution, with promotions impacting margins. Despite positive responses during key selling periods, American Eagle is wary of potential sales fluctuations. The company reported quarterly revenue slightly below expectations and incurred an $18 million charge for cost-cutting measures.
Jim Cramer, host of CNBC's "Mad Money," expressed his negative sentiment towards Novavax, stating that he has "nothing good to say" about the company. Cramer recommended waiting for a pullback before investing in Camtek, favored Nucor over Atkore in the steel industry, advised caution with Coinbase due to its expensive stock price, and suggested that American Eagle Outfitters has improved but still lags behind Abercrombie & Fitch.
American Eagle Outfitters has raised its annual revenue forecast, indicating steady demand for its apparel and accessories ahead of the holiday season. The company now expects mid single-digit growth, compared to its previous forecast of low single-digit growth. Analysts had anticipated a growth rate of 2.61%. Shares in the company dropped 15% premarket on Tuesday.
Nvidia's shares surged 19% in extended trading after giving stronger-than-expected revenue guidance for the fiscal second quarter and reporting beats on the top and bottom lines in its fiscal first quarter. Snowflake tumbled 11% after hours due to weaker-than-expected second-quarter revenue guidance. American Eagle Outfitters' shares slid 15% after the clothing retailer said it expects second-quarter revenue to fall in the low single digits. Guess? raised its dividend and hiked its full-year earnings and revenue guidance, causing shares to pop 3%. e.l.f. Beauty's shares jumped 10% in extended trading after reporting fiscal fourth-quarter earnings that beat expectations on the top and bottom lines.