From NBC Universal: 2024-08-29 08:02:29

American Eagle missed sales targets for the second quarter but saw profits rise nearly 60% due to lower product costs. Earnings per share were 39 cents, beating expectations of 38 cents. Revenue was $1.29 billion, slightly below the expected $1.31 billion. Sales rose 8% to $1.29 billion, boosted by a calendar shift adding $55 million.

During the quarter, American Eagle’s intimates line Aerie saw revenue grow by 9% while its namesake brand grew by 8%. The gross margin was 38.6%, higher than the previous year and in line with analyst expectations. The company issued a better-than-expected outlook for the current quarter but a lower forecast for the full year.

For the current quarter, American Eagle expects comparable sales to grow between 3% and 4%. Total revenue is expected to be flat to slightly up, in line with expectations. For the year, the company expects comparable sales to increase by 4% and total revenue by 2-3%, slightly below analyst expectations. Operating income increased by 55% to $101 million, with an operating margin of 7.8%.



Read more at NBC Universal: American Eagle (AEO) earnings Q2 2024