American Eagle Outfitters Q1 profits up

Retailer American Eagle Outfitters Inc said its first quarter profits increased 16% to US$64.2m (£38.8m) from US$55.3m (£33.5m) for the same period last year. Earnings for the first quarter ended 29 April 2006 rose 20%. Total sales increased 14% to US$522.4m (£316.4m) from US$456.5m (£276.4m) in the corresponding period last year. Comparable store sales increased 9% versus a 27% increase last year. Gross profit for the first quarter increased to US$253.8m (£153.7m), or 48.6% as a percent to sales, from $222.2 million (£134.6m), or 48.7% as a percent to sales last year.

The company is due to launch a new intimates sub-brand, 'aerie by American Eagle,' this autumn, and plans are underway to open the first four stores in it second major US brand, Martin + Osa, targeting 25-40 year olds.