After American Eagle Outfitters, Inc. (AEO) reported that it had missed analysts’ revenue expectations for its fiscal second quarter earnings report, option traders are taking actions suggesting that they think the share price will continue to move lower in the future. This may come as no surprise, considering the share price fell more than 10% the day after the announcement.
American Eagle Outfitters reported earnings per share (EPS) of $0.60 and $1.19 billion in revenue—analysts had been expecting $0.55 in EPS and $1.22 billion in revenue. In addition, the apparel company’s e-commerce business decelerated compared with the prior year, dropping 5%. Prior to the announcement, …
