American Eagle Sales Continue to Grow
August 17 2016 - 7:50AM
Dow Jones News
American Eagle Outfitters Inc. on Wednesday said
comparable-store sales, profit and revenue rose in the latest
quarter as results topped expectations.
In the quarter, American Eagle posted 3% overall comparable
sales growth, compared with the 2.8% that analysts polled by
Thomson Reuters were expecting.
At its namesake brand, comparable sales rose 1% while at its
lingerie brand, Aerie, sales increased 24%.
The Pittsburgh-based retailer expects to make 40 cents to 41
cents a share in profit in the third quarter and forecast
comparable stores sales would improve in the low single digits.
American Eagle has recently started a turnaround from a two-year
sales slump.
American Eagle has been highlighting its denim products, and
analysts have said that American Eagle is one of the few retailers
performing well in the teen and women's categories. In the past
week, analysts from both Deutsche Bank and Wunderlich Securities
raised their ratings to "buy" from "hold."
American Eagle started with one store at Twelve Oaks Mall in
Novi, Mich., and initially focused on outdoor-sports apparel and
equipment. It later recast itself as a clothing retailer with a
collegiate flair. The retailer, part of the retail empire of the
Schottenstein family of Columbus, Ohio, went public in 1994. Jay L.
Schottenstein, the company's longtime chairman and chief executive
for about a decade through 2002, retook the helm of the retailer in
2014 and became permanent CEO in December.
For the period ended July 30, American Eagle reported profit of
$41.6 million, or 23 cents a share, compared with a profit of $33.3
million, or 17 cents a share, a year prior. Revenue rose 3.2% to
$822.6 million.
Analysts polled by Thomson Reuters had expected earnings per
share of 21 cents on revenue of $820 million.
Gross profit margin improved to 37.3% from 35.7% on lower costs
and higher selling prices that was partially offset by increased
delivery expenses related to online sales.
At quarter's end, the company had 1,044 total stores with 6.6
million gross square feet of retail space.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
August 17, 2016 08:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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