Ready for the hissy fit?
If you own shares of American Eagle Outfitters
Last night, American Eagle committed the unforgivable retail sin of "failing to meet expectations" in same-store sales growth for the month of October. Of course, the expectations American Eagle "failed" weren't the company's, but the Street's.
Mr. Market wanted to see 9.9% comps growth, while American Eagle posted only 8% growth. Overall, the firm's sales were up 18%.
What's the reward for such a performance, at the same moment that peers like Hot Topic
The big red, that's what.
American Eagle shares dipped after hours, following a bit of a down day during the regular session -- which is pretty amazing, really. Amazingly silly, that is. American Eagle actually upped its guidance for the quarter, raising it from $0.61 to $0.63 a share to $0.64 to $0.65 a share. The low end of that range now coincides with the average analyst estimate, and would represent 30% growth over the prior-year quarter.
American Eagle's strong showing, during a period in which consumers are proving decidedly edgy, should send the stock the other way, especially given the success the firm has turning sales into real cash profits, much of which is returned to shareholders.
If the Street throws a hissy fit, so be it. I'm always looking for cheap shares.
For more fashion-related Foolishness:
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At the time of publication, Seth Jayson had shares of American Eagle, but held no positions in any other company mentioned. View his stock holdings and Fool profile here. See what he's Digging these days. Fool rules are here.