American Eagle Outfitters Inc (NYSE:AEO) reported better-than-expected results for the second quarter on Wednesday after the close, and shares are soaring. Here’s a rundown of the retailer’s report.
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Q2 Highlights: American Eagle reported second-quarter revenue of $1.28 billion, beating analyst estimates of $1.24 billion, according to Benzinga Pro. The company reported second-quarter earnings of 45 cents per share, beating estimates of 20 cents per share.
Total revenue was down 1% on a year-over-year basis as comparable sales also declined 1%, driven by a 3% decline in American Eagle comps, but partially offset by 3% growth at Aerie.
“We were pleased to see an improvement in the business during the second quarter driven by higher demand, lower promotions and well-managed expenses, all of which exceeded our expectations,” said Jay Schottenstein, executive chairman and CEO of American Eagle.
American Eagle said it completed its $200 million accelerated share repurchase program during the second quarter and returned $21 million to shareholders in the form of dividends.
Total inventory increased 8% year-over-year to $718 million. American Eagle ended the quarter with $126.78 million in total cash and cash equivalents.
“The fall season is off to a positive start. Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales,” Schottenstein said.
American Eagle said it expects comparable sales growth in the low single-digit range for both the third and fourth quarters.
American Eagle’s management team is currently discussing the quarter on an earnings call that started at 4:30 p.m. ET.
AEO Price Action: American Eagle shares were up 25.04% after-hours, trading at $17.03 at the time of publication on Wednesday, according to Benzinga Pro.
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