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.
Apparel sales in the Asia Pacific region are continuing on a golden growth trajectory despite a slowdown in China. Domestic brands are continuing to hold their own, and foreign brands intent on making...
Teen apparel retailer American Eagle Outfitters has posted a 29.5% decline in first-quarter net profit, after cooler weather dampened demand for its seasonal merchandise....
Women's wear retailer Cache has appointed Arnold Cohen to the post of executive vice president and chief marketing officer....
US fashion brand Guess Inc has appointed Hillary Super as senior vice president and general merchandise manager....
The Guatemalan government has agreed to enforce its labour laws - finally resolving a complaint filed in 2008 by the US government under the Dominican Republic-Central America Free Trade Agreement (DR...
American Eagle Outfitters has appointed Kitty Yung as executive vice president of Asia Pacific, and has promoted Simon Nankervis as senior vice president of Americas and global country licensing....
Teen apparel retailer American Eagle Outfitters has today (6 March) reported a 84.8% increase in fourth-quarter profit on the back of higher sales and fewer markdowns - but warned of a slowdown in the...
US surf wear brand Quiksilver has announced a series of senior management changes as part of efforts to turnaround the business, following the appointment of a new president and CEO in January. ...
- Synergies Worldwide CEO unravels sourcing shifts
- Rana Plaza three years on – Timeline of change
- Bangladesh still needs reforms to fix factories
- First figures show Bangladesh exports climb
- Collaboration key to the future of smart textiles
- BHS lacks relevance as it files for administration
- US Q1 in brief: Skechers, Steve Madden
- Improving traceability a key industry challenge
- Hanesbrands to buy Pacific Brands for $800m
- Bangladesh remediation delays "unacceptable"