American Eagle Outfitters Inc. (NYSE: AEO) reported its third quarter financial results for the fiscal year. The apparel retailer missed estimates in both revenue and earnings, but shares were up as high as 4.5 percent on Wednesday.
For the third quarter, American Eagle reported net revenue of $960 million, up 2 percent year over year, and falling short of Thomson Reuters analysts’ estimates of $960.8 million The company reported an adjusted EPS of $0.37, falling short of analysts’ estimates of $0.38. Comparable sales were up 3 percent, following a 2 percent increase from the previous year.
While sales for the American Eagle brand only grew 1 percent, the Aerie’s segment revenue grew by 19 percent in the third quarter.
In the quarter, the company opened four new stores along with 11 international licensed stores, but says it’s on track to close a total of 25 to 30 stores this year.
“The third quarter produced record sales, sequential margin improvement and marked eleven straight quarters of comp sales growth. These results validate our investments in product leadership, innovation, quality and brand equity.” said Jay Schottenstein, CEO of American Eagle.
American Eagle is now expecting a strong momentum going into the fourth quarter after the stronger than expected third quarter and the approaching holiday season. The retailer now estimates a mid-single digit comparable store sales increase. The company expects fourth quarter EPS in the range of $0.42 and $0.44, while Thomson Reuters analysts estimate $0.39.