American Eagle Outfitters Inc. (NYSE: AEO) shares have risen sharply in trading today after the retailer gave a bullish outlook for the holiday-shopping season. The Pittsburg, Pennsylvania-based company also reported strong third-quarter financial results.
For the third quarter, American Eagle reported a profit $52.4 million, or $0.27 per share, compared with a profit of $33 million, or $0.17 per share reported for the same period in the previous year. The company’s profit for the third quarter was in-line with Street estimates.
American Eagle’s sales for the third quarter jumped 11% to $832 million. Same-store sales for the third quarter rose 5%.
Jim O’Donnell, CEO of American Eagle Outfitters, said that he is encouraged by the company’s progress in the third quarter and the continued momentum into the holiday season. O’Donnell also said that strong top line growth is evidence of the success of the company’s key item strategy and merchandise improvements.
American Eagle also gave a bullish outlook for the fourth quarter, which includes the crucial holiday-shopping season. The company expects fourth-quarter earnings per share to come in between $0.40 and $0.44, which is above the Street estimates of $0.39 per share.
The company said that strong sales over Thanksgiving weekend were driven by increased traffic and conversion and the powerful unit sales growth reflected a positive customer response to the holiday assortment and planned promotions.
Following the strong third-quarter financial results and the solid fourth-quarter outlook, American Eagle Outfitter shares rose sharply in early trading today. American Eagle shares rose to an intra-day high of $14.97. At last check, the stock was trading 3.87% higher at $13.95.
American Eagle shares have gained 5.64% in the last one month, compared with a decline of 1.60% for the S&P 500. The stock has fallen 5.19% this year, compared with a decline of 1.94% for the S&P 500.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht. |