Diamonds and Dogs
The eagle is soaring today. American Eagle Outfitters (AEO) is surging higher by more than 17% on heavy volume following earnings last night. Like most retailers, the teenager oriented clothing company has faced some tough times of late. American Eagle reported earnings of 22 cents ahead of forecasts of 18 cents per share. Revenue grow by 7% to $749 million beating estimates of $731 million. Guidance for the next quarter was in line with estimates so at least one retailer still has consumers hooked on their clothing and merchandise.
Victoria Secret clothing looking better than their stock price. L Brands Co (LB), the owner of Victoria Secrets among other stores (Pink, Bath & Body Works) is watching their stock price drop over 4% following disappointing earnings. The company did beat expectations for earnings by 4 cents while revenue barely miss estimates. However, the company did lower guidance for the full year from $3.90-$4.10 to $3.60-$3.80 per share, a theme getting more common by the day in the retail space. The good news for Victoria Secret Stores was their sales did increase by 2.65% year-over-year.