American Eagle Outfitters Inc. (NYSE: AEO) released its first-quarter financial results Wednesday before the markets opened. The company had $0.15 in earnings per share (EPS) on $700 million in revenue, which compares to Thomson Reuters consensus estimates of $0.12 in EPS on $692.32 million in revenue. The same period from the previous year had $0.02 in EPS on $646.13 million in revenue.
The company gave guidance for the second quarter as EPS in the range of $0.11 to $0.14. The consensus estimate is $0.11 per share for the second quarter.
In the quarter, the company opened four new factory stores, including one in Mexico, and closed six locations, including three AE and three aerie stores. Ten international licensed stores opened during the quarter, including five stores in Japan, four stores in Israel and the first store in Qatar.
Consolidated comparable sales increased 7%, compared to a 10% decrease last year.
Jay Schottenstein, interim CEO, commented on earnings:
Our strong first quarter results reflected outstanding merchandise and customer-focused execution. Both AE and aerie performed well, achieving higher sales and earnings, proving successful in a price promotional retail climate. We will continue to raise the bar by offering great product quality, innovation, style and value. Across the organization, we are focused on the market opportunity to leverage our competitive strengths in merchandising, new technologies and capabilities to gain further market share and deliver earnings growth.
American Eagle ended the quarter with total cash and investments of $327 million, compared to $328 million last year.
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Ahead of earnings, a few analysts weigh in on the stock:
- B. Riley reiterated a Buy rating with a $20 price target.
- Mizuho reiterated a Neutral rating and raised its price target to $18 from $16.
- Cowen upgraded shares to Outperform from Market Perform and raised the price target to $19 from $17.
Shares of American Eagle closed Tuesday down 1.6% at $15.74. Following the release of the earnings report, shares were up 7% at $16.84. The stock has a consensus analyst price target of $18.23 and a 52-week trading range of $10.12 to $18.12.
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