American Eagle Outfitters (AEO) maintained its outlook late Wednesday after reporting earnings for its fiscal first quarter. Rival Abercrombie & Fitch (ANF) hiked outlook early Wednesday after an easy earnings beat.

American Eagle stock plunged in late trade Wednesday. Abercrombie & Fitch stock soared into the profit-taking zone, while hitting a fresh all-time high.

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American Eagle Outfitters Earnings

Estimates: Analysts forecast American Eagle Outfitters earnings to jump 67% to 28 cents per share, according to FactSet. Revenue is seen growing 7%, year over year, to $1.151 billion. Same-store sales should rise 5.5% vs. a decline in the year-ago quarter.

Results: Diluted earnings per share of $0.34 in the quarter ended May 4 vs. 9 cents in the year-ago quarter. Revenue rose 6% to $1.1 billion.

Outlook: For the full year, American Eagle continues to guide operating income in the range of $445-$465 million, reflecting a revenue gain of 2%-4%, the company said late Wednesday.

Analysts forecast 3%, FactSet shows. American Eagle’s fiscal year ends in January.

Abercrombie & Fitch Earnings

Estimates: Analysts expected Abercrombie & Fitch earnings to vault 352% to $1.76, according to FactSet. Revenue was seen growing 16%, year over year, to $967.4 million. Same-store sales was forecast to climb 10.2%.

Results: Abercrombie earned $2.14 a share, soaring 449% vs. a year earlier. Revenue swelled 22% to $1.02 billion, with growth accelerating for a fifth straight quarter. Same-store sales up 21%, with Abercrombie & Fitch brand comps up 29%.

Outlook: For the full fiscal year ended January 2025, Abercrombie now sees revenue up 10% vs. a prior target of 4%-6%. Analysts projected a 7% gain before the Q1 results, FactSet shows.

Abercrombie delivered “another objectively healthy print,” William Blair analyst Dylan Carden wrote in a note to clients Wednesday. But though Abercrombie shares could “grind higher ultimately on earnings revisions,” the analyst flagged risk of a “shorter runway” and “more tempered growth” ahead.

“The work here is simply how much upside to margin there is as sales should inevitably start finding some level further into this year against harder comparisons,” Carden wrote.

Abercrombie is finding favor again with middle-age shoppers nostalgic for their youth, retail market watchers say. It has also made efficiency gains.

Abercrombie Stock, American Eagle Stock

Shares of Abercrombie rocketed 24.3% to 189.44 on the stock market today. ANF stock hit a record high intraday.

Abercrombie stock also hit the profit-taking sell zone from a 140.28 buy point, cleared earlier in May. Shares are now up 499% from a prior breakout last June.

The relative strength line bolted higher withthe stock Tuesday. A rising RS line, the blue line in the chart shown, shows Abercrombie & Fitch stock’s outperformance vs. the S&P 500 index.

Shares of American Eagle sank 6.4% in extended trading. American Eagle Outfitters stock edged up 0.5% in the regular session on Wednesday, still slightly below the 50-day moving average. Shares show a 26.44 buy point, though the RS line is near the consolidation bottom. Investors could use a decisive move above the 50-day line, or perhaps the 25.15 level, as an early entry.

The trendy youth apparel retailers are reporting as investors closely watch the impact of lingering inflation on consumers’ shopping habits. Last week, Urban Outfitters (URBN) issued strong earnings and a solid outlook for the current quarter.

Led by Abercrombie, the retail stocks went on a strong run in the past year on the back of resilient growth despite macroeconomic pressures.

Gap (GPS) reports late Thursday. Shares have fallen below the 50-day line after their big run-up since last October, sliding 3.1% on Tuesday. The company in March crushed estimates for the holiday quarter. The Old Navy brand also returned to growth.

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