American Eagle Outfitters (AEO) is taking on upward pressure in early trading after the specialty-clothing purveyor said Wednesday morning that sales climbed 11 percent to $910.37 million during the third quarter and provided fourth quarter guidance in line with analyst expectations.
Profits in Q3 tallied $78.6 million, or $0.39 per share, versus $52 million, or $0.27 a share, in the same quarter last year. Income from continuing operations was $82.44 million, or $0.41 per share, compared to $57.95 million, or $0.30 per share, the year prior period. The retailer exited its 77kids business in August, which affect net earnings. Wall Street was expecting earnings. Wall Street was anticipating earnings of 39 cents per share on revenue of $873.9 million.
Gross profit surged 21 percent to $379 million and increased 350 basis points to 41.6% as a rate to sales, according to the Pittsburgh, Pennsylvania-based company. Fewer markdowns and higher product prices helped boost gross margins 290 basis points.
Online sales for AEO Direct, which include ae.com and aerie.com, increased 27 percent, following a 21 percent growth in the third quarter of 2011.
For the fourth quarter, American Eagle Outfitters guided that earnings would be between 54 cents and 56 cents per share, in line with analyst predictions of 55 cents per share. Regarding the full year, the company expects earnings from continued operations of $1.38 to $1.40 per share, up from its earlier estimate of $1.33 to $1.36 per share. Analysts were calling-for full year earnings of $1.32 per share.
On Tuesday, American Eagle said that Black Friday found their stores swamped with shoppers.
Shares of AEO gapped upward at the opening bell with the report. Shares are holding gains of more than 8 percent at $21 per share. Shares are up 45 percent throughout 2012.
Read Next
