U.S. Markets open in 6 hrs 3 mins
  • S&P Futures

    3,334.00
    -12.00 (-0.36%)
     
  • Dow Futures

    27,399.00
    -83.00 (-0.30%)
     
  • Nasdaq Futures

    11,348.00
    -46.75 (-0.41%)
     
  • Russell 2000 Futures

    1,503.60
    -2.90 (-0.19%)
     
  • Crude Oil

    39.12
    -1.48 (-3.65%)
     
  • Gold

    1,901.90
    +19.60 (+1.04%)
     
  • Silver

    24.44
    +0.84 (+3.56%)
     
  • EUR/USD

    1.1741
    +0.0073 (+0.6223%)
     
  • 10-Yr Bond

    0.6460
    -0.0170 (-2.56%)
     
  • Vix

    26.20
    +0.01 (+0.04%)
     
  • GBP/USD

    1.2864
    +0.0023 (+0.1762%)
     
  • USD/JPY

    105.6770
    +0.1580 (+0.1497%)
     
  • BTC-USD

    10,747.63
    -96.58 (-0.89%)
     
  • CMC Crypto 200

    230.20
    +0.53 (+0.23%)
     
  • FTSE 100

    5,897.50
    -30.43 (-0.51%)
     
  • Nikkei 225

    23,539.10
    +27.48 (+0.12%)
     

American Eagle posts bigger-than-expected loss on virus-led store closures

Clothing is seen for sale in an American Eagle Outfitters retail store in Manhattan, New York
Clothing is seen for sale in an American Eagle Outfitters retail store in Manhattan, New York

(Reuters) - American Eagle Outfitters Inc posted a steeper-than-expected loss on Wednesday, as sales and store traffic plummeted following coronavirus-led store closures, sending shares down as much as 10.5%.

The retailer, which withdrew its annual forecast in April, has experienced a drop in demand for its jeans and popular Aerie brand apparel, which include intimates and athleisure.

The Aerie brand recorded a revenue decline of 2%, compared with a 28% rise a year ago. Revenue at the American Eagle label fell 45% during the quarter.

The company also suspended its second-quarter dividend and does not anticipate declaring a dividend for the rest of this year to preserve liquidity.

American Eagle also said its net loss stood at $257.2 million, or $1.54 per share, compared with a profit of $40.8 million, or 23 cents per share, a year earlier, mainly due to an impairment charge of about $156 million related to COVID-19-induced closures of 272 stores.

Excluding one-time items, the company reported a loss of 84 cents per share in the first quarter, larger than analysts' average estimate of a loss of 30 cents per share, according to IBES data from Refinitiv.

Total revenue fell nearly 38% to $551.7 million during the quarter ended May 2, also missing market expectations of a revenue of $634.3 million.


(Reporting by Aditi Sebastian; editing by Uttaresh.V)