American Eagle Outfitters Inc.’s second-quarter profits doubled but fell short of projections, and an increase in inventories — some of which was tied to an expansion of the retailer’s accessories business — spooked investors and sent the stock down to a two-year low.
Net income rose to $19.7 million, or 10 cents a share, from $9.7 million, or 5 cents, a year earlier. Still, profits fell 1 cent shy of analyst expectations. Sales for the three months ended July 30 rose 3.7 percent to $675.7 million from $651.5 million, and comparable-store sales were flat.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"