CIBC World cut estimates on American Eagle Outfitters (AEOS).
Analyst Dorothy Lakner says management guided first quarter estimates lower due to weaker than expected sales in February and March. As a result, she cut her $0.22 first quarter EPS estimate to $0.16, and trimmed the $1.90 fiscal 2003 (Jan.) estimate to $1.71. Lakner says, although the first quarter will be weaker than expected -- with March comparable sales (sales at stores open for more than one year) down 1.3%, below her estimate of flat to slightly down comparable sales -- she believes continued strength in menswear and new fashion items arriving for women will pick up the pace in sales. She maintains her strong buy rating and keeps her $40 price target.