Shares of American Eagle Outfitters Inc. tumbled 8.8% toward a more than five-month low, after the fashion apparel and accessories retailer reported fiscal second-quarter profit that beat expectations but revenue that rose to a record but came up shy of forecasts. For the quarter to July 31, the company swung to net income of $121.5 million, or 58 cents a share, from a loss of $13.8 million, or 8 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 60 cents, above the FactSet consensus of 55 cents. Revenue rose 35.2% to $1.19 billion, below the FactSet consensus of $1.23 billion. Store revenue grew 73% amid an improvement in store traffic as COVID-19 restrictions were lifted, while total online demand was up 9% as digital revenue decreased 5%. Aerie revenue rose 34% to $336 million and American Eagle revenue grew 35% to $846 million. The stock, on track to open at the lowest price seen during regular-session hours since March 25, has dropped 10.8% over the past three months through Wednesday, while the S&P 500 has gained 7.5%.
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