Categories Earnings, LATEST

American Eagle earnings top estimates on record revenues

Record high revenues and robust comparable store sales pushed up earnings of apparel retailer American Eagle Outfitters (AEO) in the first quarter. The results particularly benefitted from the strong performance of the Aerie lingerie brand, and topped analysts’ forecast.

First-quarter profit climbed 57% to $39.9 million or $0.22 per share from the same period last year. On an adjusted basis, earnings climbed 44% to $0.23 per share and surpassed market views.

American Eagle Outfitters first quarter 2018 earnings
American Eagle Q1 2018 Earnings Infographic

Net revenues advanced 8% annually to $822.96 million, driving the bottom line growth. Benefitting from the company’s strong brand equity, comparable store sales advanced 9% during the quarter, supported by a 38% growth in the sales of the Aerie underwear brand. Comparable sales of the American Eagle brand increased 4%.

“We are highly focused on our strategic plan, centered on expanding American Eagle, accelerating Aerie’s growth, elevating the customer experience and delivering strong financial returns,” said American Eagle CEO Jay Schottenstein.

Comparable store sales advanced 9% during the quarter, benefitting from the strong brand equity 

In recent years, the popularity of Aerie brand grew significantly resulting in strong market share expansion, giving competitors a run for their money. The other contributors to the impressive first quarter results were the aggressive expansion of the company’s e-commerce platform and the growing demand for its jeans brand.

In the first quarter, American Eagle repurchased 2.3 million of its shares for $45 million and paid dividends of $24 million. During the period, the company opened 4 new stores and closed 2, bringing the total store count to 935.

The Pittsburgh-headquartered company anticipates strong year-on-year growth in its second quarter earnings and is expected to come in the range of $0.27 to $0.29 per share, reflecting an anticipated mid-single digits increase in comparable store sales.

Though American Eagle shares made some notable gains soon after the earnings announcement Thursday, they retreated later paring some of the gains.

Most Popular

PayPal Holdings (PYPL) Q1 2021 revenue up 31%; earnings beat

PayPal Holdings Inc. (NASDAQ: PYPL) reported stronger-than-expected earnings and revenues for the first quarter of 2021. Shares of the payment service provider gained during Wednesday’s extended trading session soon after

Infographic: How Twilio (TWLO) performed in Q1 2021

Twilio (NYSE: TWLO) reported first quarter 2021 earnings results today. Revenue increased 62% year-over-year to $590 million. GAAP net loss widened to $206 million, or $1.24 per share, compared to

Uber Technologies reports Q1 loss of 6 cents per share: Infographic

Uber Technologies (NYSE: UBER) reported first-quarter 2021 financial results after the regular market hours on Wednesday. The ride-hailing company reported Q1 revenue excluding the UK accrual of $3.5 billion, up

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top