American Eagle Outfitters Q1 revenues increase 8 percent

American Eagle Outfitters reported EPS of 0.15 dollars for the first quarter ended May 2, 2015, an increase from EPS of 0.02 dollars for the comparable quarter last year, and above EPS guidance of 0.09 dollars to 0.12 dollars. Total net revenue increased 8 percent to 700 million dollars from 646 million dollars last year. Consolidated comparable sales increased 7 percent, compared to a 10 percent decrease last year.

“Our strong first quarter results reflected outstanding merchandise and customer-focused execution. Both AE and aerie performed well, achieving higher sales and earnings, proving successful in a price promotional retail climate,” said Jay Schottenstein, interim CEO of the company.

Gross profit increased 16 percent to 262 million dollars and rose 260 basis points to 37.5 percent as a rate to revenue. Operating income increased to 42 million dollars from 8 million dollars last year, and the operating margin expanded 470 basis points to 6 percent as a rate to revenue.

In the quarter, the company opened four new factory stores, including one in Mexico, and closed six locations, including three AE and three aerie stores. Ten international licensed stores opened during the quarter, including five stores in Japan, four stores in Israel and the first store in Qatar. Based on a high single digit increase in comparable sales, management expects second quarter 2015 EPS to be approximately 0.11 dollars to 0.14 dollars.