US: American Eagle Outfitters raises outlook on Q3 profit rise
- Q3 profit jumped 50% to $78.6m
- Sales rose 11% to $910m
- Gross margin improved 350 basis points to 41.6%
- Company lifted full-year EPS guidance to $1.33-$1.36
US teen clothing retailer American Eagle Outfitters has today (28 November) raised its full-year earnings outlook on the back of a 50% jump in third-quarter profit.
Net income reached US$78.6m for the 13 weeks to 27 October, compared to $52.4m last year.
Sales increased 11% to $910m, compared to $819m the same period last year. Comparable store sales, which include AE Direct, rose 10% against a 7% rise last year. Online sales jumped 27% compared to a 21% rise the prior year.
Gross margin improved 350 basis points to 41.6%.
CEO Robert Hanson said: "Our third quarter reflected on-going business momentum, profitable sales growth, and a leading brand and product driven customer experience. We're also pleased to see business strength carry into the fourth quarter and record results over Thanksgiving weekend. As we look forward, we are sharply focused on executing our strategy plan to drive future profitable growth and top tier shareholder returns."
During the quarter, the retailer completed the sale of its loss-making children's brand 77kids to Ezra Dabah. American Eagle Outfitters incurred year-to-date after-tax losses of $32m, which includes operational and exit costs.
American Eagle Outfitters expects earnings per share from continuing operations to range from $1.33 to $1.36, compared to previous guidance of $1.38 to $1.40.
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