American Eagle stock jumps after earnings and sales beat expectations
American Eagle Outfitters Inc. shares rallied 7.5% after the clothing and accessories retailer reported fiscal first-quarter earnings and sales that beat expectations. Net income totaled $40.8 million, or 23 cents per share, up from $39.9 million, or 22 cents per share, last year. Adjusted EPS of 24 cents was ahead of the FactSet consensus for 21 cents per share. Revenue of $886.3 million was up from $823.0 million last year and beat the FactSet outlook for $855.0 million. Same-store sales jumped 6%, well ahead of the 3% growth FactSet forecast. In a statement, Chief Executive Jay Schottenstein said the jeans business made "ongoing market share gains" and both new and existing customers were responsible for the Aerie underwear brand's double-digit growth. For the second quarter, American Eagle forecasts a same-store sales increase in the low-single digits and EPS of 30 cents to 32 cents. FactSet is guiding for same-store sales growth of 2.7% and EPS of 35 cents. American Eagle stock has slipped 4.2% for 2019 so far while the S&P 500 index is up 11.8% for the period.
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