The solid results in the first quarter were driven by a 9% increase in comparable store sales, with particular strength seen in the Aerie brand. The good comp performance, which was driven by an appealing assortment of merchandise as well as solid operational execution last time, is expected to continue for this quarter too, with an increase projected in the mid-single digits range.
Comparable store sales are expected to increase in the mid-single digits range
Last quarter American Eagle witnessed growth in traffic and transactions. The company also saw strength across all its channels which helped boost the comp performance.
Although there is tough competition in the retail sector, American Eagle is investing significantly in both its stores and digital channels and these are expected to drive increases in revenues and profits for this quarter too.
Several retailers have reported positive results this quarter. Earlier this month, Macy’s Inc. (M) reported Q2 earnings results which beat market expectations. Macy’s stock, however, dropped 5% following its results release.
American Eagle stock is up 51% thus far this year and up 23% over the past three months.
Related: American Eagle Q1 2018 Earnings Infographic
