American Eagle Outfitters Jumps on Results

American Eagle Outfitters Inc. (NYSE: AEO) reported an adjusted second fiscal quarter EPS of $0.21 on $740 million in sales before markets opened this morning. In the same period a year ago, the teen retailer reported EPS of $0.13 on revenue of $675.7 million. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.21 and $719.3 million in revenue.

The company’s earnings exclude the impact of the closure of its 77kids business. Including that loss from discontinued operations, American Eagle posted EPS of $0.09.

The company’s CEO said:

While pleased with our results, and therefore raising our annual outlook, we continue to drive for long-term performance improvement through fortifying our brands, further strengthening our products, marketing and customer experience, enhancing operational disciplines and pursuing growth across North America.

For the third quarter, EPS from continuing operations is expected to total $0.37 to $0.38, up from $0.30 a year ago. For the full-year American Eagle is raising EPS guidance to $1.33 to $1.36. The consensus estimate for third-quarter EPS is $0.37 and full-year EPS is pegged at $1.32.

Like many other retailers, American Eagle’s online sales rose in the quarter. Direct online sales jumped 28%, compared to a rise of 17% in the same period a year ago.

American Eagle’s shares are up about 8% in premarket trading at $22.48, a new 52-week high if the price holds. The current 52-week range is $10.00 to $21.53. Thomson Reuters had a consensus analyst price target of $24.76 before today’s results were announced.

Paul Ausick