American Eagle Outfitters raked in stronger-than-expected second quarter earnings. However, the clothing & accessories retailer’s comparable sales growth came in lower than anticipated.
The company’s adjusted earnings for the three months ending on August 3 came in at 39 cents, up from the year-ago quarter’s 34 cents and higher than the Street estimate of 32 cents.
Group revenues increased +8% to $1.04 billion, slightly ahead of analysts’ expectation of $1 billion.
While American Eagle’s same-store sales climbed +2% from last year, the growth rate fell short of Wall Street forecasts of just over 3%. CEO Jay Schottenstein cited under-performance in certain seasonal categories and a delayed start to back-to-school shopping as challenges in the quarter. But he also emphasized on the company’s 18th consecutive quarter of positive consolidated comparable sales growth.
The company's forecast for its third quarter 2019 earnings per share is between 47 cents and 49 cents, which is a lower range compared to Refinitiv forecast of 52 cents per share.