Why American Eagle Outfitters Is Bucking the Retail Trend
It seems that this retailer was able to buck the trend with these most recent results, and on the back of solid comparable sales.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
American Eagle Outfitters Inc. (NYSE: AEO) reported its fiscal second-quarter financial results before the markets opened on Wednesday. It seems that this retailer was able to buck the trend with these most recent results, and on the back of solid comparable sales.
The company said that it had $0.19 in earnings per share (EPS) and $845 million in revenue. That compared with consensus estimates from Thomson Reuters of $0.16 in EPS and revenue $824.04 million. The same period of last year reportedly had EPS of $0.23 and $822.59 million in revenue.
Comparable sales rose 2% in the quarter, largely driven by its lingerie line Aerie, which saw its comparable sales rise by 26%. This number is absolutely crushing, even if total sales don’t match up with competitors. For a basis of comparison, Victoria’s Secret — the lingerie segment of L Brands — had a 14% decline in comparable sales this quarter.
In terms of the outlook for the third quarter, American Eagle Outfitters expects to see EPS in the range of $0.36 to $0.38. Consensus estimates call for $0.38 in EPS and $950.3 million in revenue.
[nativounit]
On the books, American Eagle Outfitters cash and cash equivalents totaled $192.56 million at the end of the quarter, down from $378.61 million at the end of the previous fiscal year.
Jay Schottenstein, CEO of American Eagle, commented:
In the second quarter, we achieved sales and earnings above our expectations in a challenging retail environment. Sales trends improved and I’m proud of the continued growth in jeans, bottoms, women’s apparel and Aerie, with encouraging signs in men’s tops beginning to emerge. Our brands are strong and we have significant opportunity for further growth. I’m optimistic as we enter the second half of the year, and we remain focused on delivering product innovation, strengthening customer engagement and improving profit flow-through.
Shares of American Eagle were last seen up about 5% at $11.80, with a consensus analyst price target of $12.78 and a 52-week range of $10.23 to $19.02.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
