Revenues surged 14% to $964.85 million during the three-month period amidst broad-based demand growth. The strong performance compared to last year is partially attributable to the shifted retail calendar.
Comparable store sales advanced 9%, with digital stores registering a double-digit increase. Same-store sales of the American Eagle brand was up 7%, while the Aerie brand continued to lead with a 27% rise.
“We are pleased with the performance of the business through the back-to-school season with strength across brands and channels continuing. As we look forward, we remain focused on fueling our brands, delivering the best customer experiences and achieving strong financial returns,” said CEO Jay Schottenstein.
The company returned $24 million to shareholders through cash dividends during the quarter, when it opened four American Eagle stores, one Aerie stand-alone store and one Tailgate store.
The strong top-line performance, compared to last year, is partially attributable to the shifted retail calendar
Looking ahead, American Eagle Outfitters expects comparable sales to increase in the high-single digits and total revenue to grow in the mid-single digits in the current quarter. Third-quarter earnings are forecast in the range of $0.45 per share to $0.47 per share.
Of late, the company has been investing heavily in the store network and digital channels as part of its efforts to garner a competitive advantage in the sector.
Shares of American Eagle Outfitters, which gained about 43% since the beginning of the year, pared some of the gains over the last week. The stock closed the last trading session higher but dropped sharply in premarket trading Wednesday following the earnings report.
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