American Eagle Outfitters Inc. (NYSE: AEO) reported its fiscal third-quarter financial results before the markets opened on Wednesday. The company posted $0.37 in earnings per share (EPS) and $960.4 million in revenue, compared with consensus estimates from Thomson Reuters that called for $0.38 in EPS on revenue of $960.81 million. In the same period of last year, the retailer said it had EPS of $0.41 and $940.61 million in revenue.
During the quarter, consolidated comparable sales were up 3%, following a 2% increase last year.
Gross margin took a step back this quarter to 39.0%, compared to 40.2% last year. The reduction in margin rate was due to higher promotions and increased shipping costs associated with a strong digital business.
In terms of the outlook for the fiscal fourth quarter, the company expects to see EPS in the range of $0.42 to $0.44. Consensus estimates call for $0.39 in EPS and $1.15 billion in revenue for the quarter.
On the books, the company ended the quarter with total cash of $258 million, down from $292 million last year. Over the past year, American Eagle returned $88 million in share buybacks and $89 million in dividends and invested $189 million in capital expenditures, resulting in a lower cash balance.
CEO Jay Schottenstein commented:
The third quarter produced record sales, sequential margin improvement and marked eleven straight quarters of comp sales growth. Digital sales continued to grow at a rapid pace, while we also saw store sales strengthen. These results validate our investments in product leadership, innovation, quality and brand equity. I’m very pleased to see strong momentum continue into the fourth quarter, positioning us well for the next few critical weeks of the holiday season.
Shares of American Eagle were last seen up 1% at $16.26, with a consensus analyst price target of $14.06 and a 52-week range of $10.23 to $18.49.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.