American Eagle's Same-Store Sales Climb, As Does its Guidance
November 03 2015 - 7:40AM
Dow Jones News
American Eagle Outfitters Inc. said Tuesday that same-store
sales for its latest quarter climbed 9%, leading the teen retailer
to raise its earnings forecast for the period to 34 cents per
share.
The company previously expected earnings of between 28 cents and
31 cents for the period, compared with adjusted earnings per share
of 22 cents during the same period a year earlier, the company said
in a press release.
Teen retailers like American Eagle and rival Abercrombie &
Fitch Co. have faced tough competition from fast-fashion retailers
including Forever 21 and H&M that offer the latest styles at
lower prices. For American Eagle, last quarter's same-store sales
growth compares with a 5% decline a year earlier and marks a third
straight quarter with an increase.
"In a highly challenging retail environment, we are extremely
pleased to see our AE and Aerie brand customers respond positively
to product and quality enhancements. We continue to experience
greater full-priced selling and less promotional activity,
resulting in profit margin expansion," said Jay Schottenstein,
Interim CEO of American Eagle.
The company also announced that it was acquiring Tailgate
Clothing Company, a sports-inspired apparel brand with a college
town store concept, in a cash-and-stock deal valued at $11 million.
Terms of the deal were not disclosed.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 03, 2015 07:25 ET (12:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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