The comparable sales will include sales from American Eagle, Aerie, Tailgate and Todd Snyder stores, as well as from AEO Direct and other digital channels. American Eagle Jeans is expected to record strong double-digit growth across genders, capture market share and further strengthen its number one market position.
The company sees an uplift in its digital business as it enters new markets. The company, as expected earlier, will continue its strong momentum into the second half of the year and sees great potential for Aerie over the long-term.
Analysts expect the company’s earnings to remain flat at $0.48 per share while revenue will rise by 3.80% to $1.06 billion for the third quarter. The company has surprised investors by beating analysts’ expectations thrice in the past four quarters. The majority of the analysts recommended a “hold” rating with an average price target of $18.71.
For the second quarter, American Eagle Outfitters posted an 8% increase in earnings helped by higher revenue. The top line included the majority for Japan license royalties. The consolidated comparable sales increased by 2%, following a 9% comparable sales increase last year. By brand, American Eagle’s comparable sales decreased 1% while Aerie’s comparable sales increased by 16%.
For the third quarter, the company expects earnings in the range of about $0.47 to $0.49 per share. This is based on an anticipated comparable sales increase in the low to mid-single digits range. The guidance excludes potential asset impairment and restructuring charges.
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