American Eagle Q1 EPS soars 43 per cent

With an increase of 43 per cent, American

Eagle Outfitters as expected reported its first quarterly financial status of EPS as $0.20 compared to $0.14 last year. The company’s net sales grew by 18 per cent to $719 million, compared to $610 million last year. Adjusted earnings for the quarter were $0.22 per diluted share, which excludes the operating results for 77kids, compared to adjusted earnings of $0.16 per diluted share previous year.

Comparable store sales too got raised by 17% including AE Direct as compared to a 7% decrease in the previous year. Gross profit increased 18% to $273 million, or 37.9% as a rate to sales, compared to $232 million, or 38% as a rate to sales. Operating income of $57 million increased 49%, compared to $38 million last year. With an increase of 43%, EPS were reported as $0.20 compared to $0.14 last year.

As the company has plans to exit its children’s business, 77kids, which includes 22 stores and the online business, it is looking ahead for business which includes a full or partial disposition of assets to a third party. In the first quarter, online sales increased 22%, compared to a 3% increase last year. At the end of the first quarter, total merchandise inventories were $377 million, compared to $332 million last year and had total cash and short-term investments of $722 million compared to $605 previous year. In days ahead, the company expects annual adjusted EPS of $1.16 to $1.22 compared to adjusted EPS of $0.97 last year and adjusted EPS of $0.13 to $0.15 from $0.13.

American Eagle outfitters is a global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products. The brands it own are American Eagle Outfitters, Aerie and 77kids. The company operates more than 1,000 stores in North America and ships to 77 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise is also available at approximately 35 international franchise stores in 12 countries.