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American Eagle Outfitters Q2 revenues improve 12 percent

By Prachi Singh

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American Eagle Outfitters reported EPS of 0.17 dollar for the second quarter ended August 1, 2015, a significant increase from EPS of 0.03 dollar for the comparable quarter last year, and above EPS guidance of 0.11 dollar to 0.14 dollar. Total net revenue increased 12 percent to a record 797 million dollars from 711 million dollars last year. Consolidated comparable sales increased 11 percent, compared to a 7 percent decrease last year.

“I’m pleased to report another strong quarter, and to see positive momentum continue. The team is delivering exceptional execution, and our customers have taken notice of improvements to our merchandise and overall customer experience. Both American Eagle and Aerie delivered strong sales and earnings growth across channels,” said Jay Schottenstein, Interim CEO.

Gross profit increased 20 percent to 285 million dollars and the gross margin rate rose 230 basis points to 35.7 percent. Operating income increased to 53 million dollars from 12 million dollars last year, and the operating margin expanded 500 basis points to 6.7 percent as a rate to revenue.

In the quarter, the company opened six new stores, including four factory stores, and closed three locations, including two AE and one aerie store. Seven international licensed stores opened during the quarter, including the first stores in South Korea and Singapore.

Based on an anticipated mid-single-digit increase in comparable sales, management expects third quarter 2015 EPS to be approximately 0.28 dollar to 0.31 dollar. This guidance excludes potential asset impairment and restructuring charges, and compares to adjusted EPS of 0.22 dollar last year.

American Eagle Outfitters