When American Eagle Outfitters Inc. (NYSE: AEO) released its fiscal first-quarter financial results before the markets opened on Thursday, The retailer said that it had $0.23 in earnings per share (EPS) on $823 million in revenue. That compares with consensus estimates of $0.22 in EPS and revenue of $805.17 million. The same period of last year reportedly had EPS of $0.16 and $761.84 million in revenue.
During the quarter, consolidated comparable sales increased 9%. By brand, American Eagles comparable sales increased 4% and Aeries comparable sales increased 38%.
In the first quarter, the company opened four American Eagle stores and closed two, ending with 935 American Eagle stores, including 118 Aerie side-by-side locations. Additionally, the company opened one Aerie stand-alone store and closed one, ending with 109 Aerie stand-alone stores.
Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.27 to $0.29. The consensus estimates from Thomson Reuters call for $0.25 in EPS and $884.86 million in revenue for the quarter.
On the books, American Eagle cash and cash equivalents totaled $289.7 million at the end of the quarter, up from $225.2 million at the end of the same period last year.
CEO Jay Schottenstein commented:
I’m very pleased to see our momentum continue. The first quarter marked our 13th consecutive quarter of positive comparable sales, leading to an increased operating margin and earnings growth, which exceeded our expectations. American Eagle leveraged strong brand equity and its dominant jeans business to deliver comparable sales gains across brick and mortar stores and e-commerce. After starting a body positivity movement, Aerie is posting record growth rates and striking a real emotional connection with its expanding customer base. We are highly focused on our strategic plan, centered on expanding American Eagle, accelerating Aeries growth, elevating the customer experience and delivering strong financial returns.
Shares of American Eagle were last seen down 1.6% at $22.25, with a consensus analyst price target of $21.28 and a 52-week range of $10.23 to $23.23.
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