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Reuters
Published
May 19, 2016
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American Eagle's sales top estimates on strong demand

By
Reuters
Published
May 19, 2016

Teen apparel retailer American Eagle Outfitters Inc reported a higher-than-expected rise in quarterly sales and profit as demand for its brands remained resilient in a grim retail environment.


Comparable sales of the company's Aerie brand, which sells intimate apparel and personal care products for women, jumped 32 percent in the first quarter ended April 30, smashing the 14.9 percent rise analysts polled by Consensus Metrix had expected.
The company launched the Aerie Real campaign in 2014, in which its ads use photos of models that are not air brushed. The campaign has resonated well with young women for its body positive message.

American Eagle has mostly focused on selling products at full price, boosting margins.
Unlike its struggling rivals, the company has responded faster to changing fashion trends, slowly winning back young shoppers who have been flocking to fast-fashion companies such as Inditex's Zara and H&M.

American Eagle's net income rose 39.3 pct to $40.5 million, or 22 cents per share, in the quarter.

The company's net revenue rose 7.1 pct to $749.4 million.

Analysts had expected a profit 18 cents per share on revenue of $731.4 million, according to Thomson Reuters I/B/E/S.

The company also forecast a second-quarter profit of 20-21 cents per share. Analysts on average expected a profit of 20 cents share. 

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