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American Eagle Outfitters Lifts Q4 Earnings Outlook

By DPA

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Business

Teen clothing retailer American Eagle Outfitters on Thursday raised its earnings outlook for the fourth quarter on improved margins and also reported a 1 percent increase in revenue for the nine-week period ended January 3, 2015.

Jay Schottenstein, Interim CEO of American Eagle said, "I am pleased with the progress we made this holiday season resulting in meaningful margin recovery and expected fourth quarter EPS growth compared to the prior year. In December, we achieved positive comparable sales growth with fewer promotions, as customers responded well to our holiday assortment, as well as new spring arrivals."

The Pittsburgh, Pennsylvania-based shopping mall fixture now forecasts earnings for the fourth quarter in a range of 0.32 dollars to 0.34 dollars per share, up from the prior range of 0.30 dollars to 0.33 dollars per share. This compares to adjusted earnings of 0.27 dollars per share in the year-ago period. The guidance excludes potential asset impairment and restructuring charges.

On average, twenty seven analysts polled by Thomson Reuters expect the company to report earnings of 0.32 dollars per share for the quarter. Analysts' estimates typically exclude special items. Further, American Eagle said its total net revenue for the nine-week period ended January 3, 2015 increased 1 percent to 893 million dollars from 882 million dollars in the year-ago period. However, consolidated comparable sales for the period decreased 2 percent.

The company will release its fourth quarter and annual 2014 fiscal results on March 10, 2015. In early December, American Eagle reported a profit for the third quarter that plunged from last year, reflecting lower revenue and operating margins amid higher restructuring and asset impairment charges.

The company's net income for the quarter was 9.04 million dollars or 0.05 dollars per share, down from 24.90 million dollars or 0.13 dollars per share in the prior-year quarter. Total net revenue for the quarter declined to 854.30 million dollars from 857.31 million dollars in the same quarter last year.

(dpa-AFX)

American Eagle Outfitters
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