Join        Login             Stock Quote

American Eagle Outfitters (AEO) Gains After 3Q Results, 4Q Guidance

 November 28, 2012 08:36 AM

(By Balaseshan) American Eagle Outfitters (NYSE: AEO) reported in-line quarterly earnings on a 11% growth in sales. Further, the specialty retailer issued fourth quarter earnings forecast that came in-line with Street's view.

Earnings from continuing operations for the third quarter were $82.44 million or $0.41 per share, up from $57.95 million or $0.30 per share last year. Earnings per share (EPS) rose to $0.39 from $0.27.

Sales grew 11% to $910.37 million. Comparable sales including AEO Direct sales increased 10% for the third quarter.

Analysts, on average, polled by Thomson Reuters had expected profit of $0.39 per share on revenue of $873.26 million for the third quarter.

[Related -American Eagle Outfitters (NYSE:AEO) Q3 Earnings Preview: What To Watch?]

Gross margin increased 350 basis points to 41.6%. Higher product costs and lower markdowns led to a 290 basis point improvement in the merchandise margin. Buying, occupancy and warehousing costs leveraged 60 basis points due to strong sales.

Looking ahead into the fourth quarter, the company expects earnings of $0.54 to $0.56 per share, while Street predicts $0.55 per share. EPS guidance is based on comparable store sales growth of mid single-digits and excludes the potential impact of store impairment charges.

For the fiscal 2012, the company raised its EPS guidance from continuing operations to a range of $1.38 to $1.40 from previous forecast of $1.33 to $1.36, while Street analysts predict $1.32. The company continues to expect capital expenditures to be about $100 million.

[Related -The Gap Inc. (NYSE:GPS), L Brands Inc(NYSE:LTD): How November Comps Will Fare Post Black Friday?]

AEO closed Tuesday's regular trading at $19.39. The stock has been trading between $12.50 and $23.94 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageSavings Glut and Financial Imbalances

Martin Wolf in today's Financial Times discusses the reasons for low interest rates and suggests some read on...

article imageA Dividend Aristocrat Is Now On Sale

The bear market investors have been dreading is already here for many individual stocks. While the S&P 500 read on...

article imageTwo Picks to Play Defense in a Slowing Economy

Is the economy slowing? Last Thursday the Institute for Supply Management (ISM) reported that its read on...

article imageUS Jobless Claims Fall, Moving Closer To Multi-Decade Low… Again

US jobless claims continue to cast a positive glow on the outlook for the labor market. Today’s weekly read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.