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American Eagle Outfitters forecast third-quarter profit below expectations on Wednesday, partly due to lower-than-expected sales for its popular Aerie line of lingerie, sending its shares down nearly 8 percent.
Same-store sales at Aerie rose 27 percent in the second quarter ended Aug 4, but missed Wall Street estimates for the first time in at least two years.
Analysts had expected Aerie’s appeal among younger women to drive an average of 30 percent increase in same-store sales in the quarter.
The company’s overall comparable sales beat estimates on strong demand for its namesake apparel in the back-to-school season.
Net income rose to $60.3 million, or 34 cents per share, in the quarter, from $21.2 million, or 12 cents per share, a year earlier.
American Eagle forecast third-quarter earnings of about 45 cents to 47 cents per share, below the analyst average estimate of 49 cents per share, according to Thomson Reuters.
The company’s shares have gained 45 percent in value this year, rising nearly 20 percent in the last three months.