American Eagle raises 2nd-qtr profit forecast
PITTSBURGH (AP) — American Eagle Outfitters Inc. on Wednesday raised its forecast for second-quarter earnings, saying that sales during the period were stronger than expected.
Shares of the teen retailer and mall fixture jumped $1.27, or 6.3 percent, to $21.60 in aftermarket trading after the update. They had fallen 49 cents, or 2.4 percent, to close the regular session at $20.33.
The company said it expected to report earnings of 19 cents to 21 cents per share, excluding special items. That's up from a previous forecast of 13 cents to 15 cents per share, and better than the 13 cents per share in adjusted earnings for the second quarter of 2011.
The latest estimate excludes charges related to the 77kids business and restructuring.
Analysts, on average, were expecting profit of 15 cents per share, with estimates ranging from 13 cents to 18 cents, according to FactSet.
American Eagle said revenue for the quarter ended July 31 rose 11 percent to $740 million, from $669 million a year ago. That's above the average analyst estimate of $714.6 million, and near the top of Wall Street's range of $682.8 million to $744.8 million.
Revenue at stores open at least a year rose 9 percent during the three-month period. That's a key indicator of underlying performance for retailers, because it excludes new stores.
CEO Robert Hanson said the company pulled back on promotions in the quarter and got higher traffic and transactions.
The company is scheduled to report second-quarter earnings Aug. 22.