American Eagle Sales Continue to Grow

American Eagle Outfitters Inc. on Wednesday said comparable-store sales, profit and revenue rose in the latest quarter as results topped expectations.

In the quarter, American Eagle posted 3% overall comparable sales growth, compared with the 2.8% that analysts polled by Thomson Reuters were expecting.

At its namesake brand, comparable sales rose 1% while at its lingerie brand, Aerie, sales increased 24%.

The Pittsburgh-based retailer expects to make 40 cents to 41 cents a share in profit in the third quarter and forecast comparable stores sales would improve in the low single digits. American Eagle has recently started a turnaround from a two-year sales slump.

American Eagle has been highlighting its denim products, and analysts have said that American Eagle is one of the few retailers performing well in the teen and women's categories. In the past week, analysts from both Deutsche Bank and Wunderlich Securities raised their ratings to "buy" from "hold."

American Eagle started with one store at Twelve Oaks Mall in Novi, Mich., and initially focused on outdoor-sports apparel and equipment. It later recast itself as a clothing retailer with a collegiate flair. The retailer, part of the retail empire of the Schottenstein family of Columbus, Ohio, went public in 1994. Jay L. Schottenstein, the company's longtime chairman and chief executive for about a decade through 2002, retook the helm of the retailer in 2014 and became permanent CEO in December.

For the period ended July 30, American Eagle reported profit of $41.6 million, or 23 cents a share, compared with a profit of $33.3 million, or 17 cents a share, a year prior. Revenue rose 3.2% to $822.6 million.

Analysts polled by Thomson Reuters had expected earnings per share of 21 cents on revenue of $820 million.

Gross profit margin improved to 37.3% from 35.7% on lower costs and higher selling prices that was partially offset by increased delivery expenses related to online sales.

At quarter's end, the company had 1,044 total stores with 6.6 million gross square feet of retail space.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

August 17, 2016 08:35 ET (12:35 GMT)

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