Spotlight on American Eagle Earnings

American Eagle just reported earnings last Tuesday, May 22. The earnings came in at what the analysts expected at $.35 a share, but the outlook for the 2nd quarter came in below expectations, sending the shares down 4%.

Margins looked good, no signs of them decreasing.

The company also authorized a 23 million shares repurchase program; it already had 4.2 million shares outstanding in its current repurchase program. Its policy on share repurchases was to offset dilution related to stock options. Could this mean that its growth is slowing down and it has to make up for it in other ways?

AEO 1-yr chart: