Categories Analysis, Earnings, Retail

American Eagle might see strength in comps

American Eagle Outfitters (AEO) is scheduled to report its second quarter 2018 earnings results on August 29. For the first quarter, the company beat market expectations with an 8% increase in revenues and a 58% increase in profits.

For the second quarter, American Eagle expects earnings to come in the range of $0.27 to $0.29 per share. Wall Street appears to have a bit more faith and expects the company to achieve earnings of $0.30 per share, reflecting a year-over-year growth of more than 57%. Analysts expect the topline to grow around 11% year-over-year to around $945 million.

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.

American Eagle comp sales trend

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

American Eagle Outfitters first quarter 2018 earnings

Most Popular

Nike (NKE) swings to profit in Q4 on 96% revenue growth; results beat

Nike, Inc. (NYSE: NKE) reported a profit for the fourth quarter of 2021, compared to a loss last year, as revenues of the sneaker giant surged 96% aided by strong

FDX Earnings: All you need to know about FedEx’s Q4 2021 earnings results

FedEx Corporation (NYSE: FDX) reported fourth quarter 2021 earnings results today. Total revenues increased to $22.6 billion from $17.4 billion in the same period a year ago. The company reported

IPO News: Torrid Holdings is set to go public next week, here’s what to know

The retail industry undergoes various shifts from time to time as the needs and preferences of customers keep on changing. In today’s world, where concepts like female empowerment and body

Tags

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