Shares of American Eagle Outfitters Inc dropped 14% on Wednesday after the apparel retailer withdrew its full-year forecast and said current-quarter results would be significantly hit by coronavirus store closures.
With North American retailers implementing store closures to combat the spread of Covid-19 since the weekend, Tuesday’s announcements have come from the likes of Macy's, Ralph Lauren, AEO, Foot Locker and Tapestry.
American Eagle Outfitters posted record Q4 sales of $1.31 billion on Wednesday, as its Aerie lingerie brand continued to experience strong growth. Profits, on the other hand, suffered from higher expenses and markdowns.
American Eagle Outfitters forecast holiday-quarter profit and comparable sales below market expectations on Wednesday, as the apparel retailer ramps up promotions to counter sluggish demand for its flagship AE brand.
The apparel retailer announced a series of new sustainability goals on Thursday, including a pledge to be carbon neutral by 2030, as well as plans for water reduction and increased use of sustainable raw materials.