Teen apparel retailer American Eagle Outfitters has raised its third quarter earnings guidance to reflect "slightly better than expected" margins during the period.

However, while the forecast has been lifted to $0.19 per share, up from earlier guidance of $0.14 to $0.16 per share, the retailer said revenues continue to be "unsatisfactory."

The outlook excludes non-cash charges associated with the closure of a distribution centre.

Total net revenue for the 13 weeks to 2 November fell 6% to $857m, down from $910m a year ago. Comparable sales dropped 5%, including sales from AEO direct, against a gain of 10% last year.

"Our third quarter results are clearly unsatisfactory," CEO Robert Hanson said.

"Yet, in an extremely challenging environment, our bottom line results are slightly ahead of our prior expectations and we ended the period with clean inventory."

The retailer, which operates more than 1,000 stores, is due to release detailed third quarter earnings on 6 December.

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American Eagle Outfitters Updates Third Quarter EPS Guidance to $0.19

November 06, 2013 04:13 PM Eastern Standard Time PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters, Inc. (NYSE: AEO) is updating its third quarter EPS outlook to $0.19 per diluted share, which excludes non-cash charges associated with closing a distribution center, as previously disclosed. This compares to EPS from continuing operations of $0.41 for the same period last year. The company's previous EPS guidance was $0.14 to $0.16. The revised outlook reflects slightly better than expected margin results.

Total net revenue for the thirteen weeks ended November 2, 2013 decreased 6% to $857 million from $910 million for the thirteen weeks ended October 27, 2012. Total consolidated comparable sales decreased 5%, including sales from AEO direct, against a 10% comparable sales increase last year. AEO direct sales increased 17% during the period. Third quarter 2013 comparable sales are compared to the 13 weeks ended November 3, 2012.

Robert Hanson, CEO, commented, "Our third quarter results are clearly unsatisfactory. Yet, in an extremely challenging environment, our bottom line results are slightly ahead of our prior expectations and we ended the period with clean inventory. We remain highly focused on strengthening our merchandising, marketing and customer service execution, while maintaining disciplined inventory and expense management."

Management will provide a business update and fourth quarter earnings outlook with the third quarter earnings release on Friday, December 6th. The company will host a conference call and real time webcast at 9:00 a.m. Eastern Time on that date. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to www.ae.com to access the webcast and audio replay.

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle Outfitters® and Aerie® brands. The company operates more than 1,000 stores in the United States, Canada, Mexico, China, and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at approximately 61 international franchise stores in 12 countries. For more information, please visit www.ae.com.

Original source: American Eagle Outfitters Inc