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American Eagle Beats Q1 Estimates, Takes on New CMO

As teen retailers continue to fold, American Eagle is making a remarkable recovery. The brand reported Q1 earnings per share of $0.22, a 47 percent increase from EPS of $0.15 in the comparable quarter of last year.

Total revenue increased 7 percent to $749 million from $700 million last year. These results beat Thomson Reuters expectations of EPS of $0.18 and revenue outlook of $731.4 million.

Comparable store sales have steadily grown, increasing 6 percent this quarter, following a 7 percent increase last year.  The Aerie brand was especially strong in stores, jumping 32 percent.

CEO Jay Schottenstein said, “In a tough retail environment, AEO delivered a strong first quarter, driven by compelling merchandise, strategic investments and solid execution across the organization. We achieved higher sales and profitability following strong growth last year. I’m proud of how the team delivered, and I’m optimistic about our future. We’ve built a strong model for success based on our leading brands, and will remain focused on maximizing our business and delivering profitable growth.”

The company expects a low single digit increase in comparable sales for Q2 and anticipates EPS of approximately $0.20 to $0.21. This guidance excludes potential asset impairment and restructuring changes and compares to EPS of $0.17 from last year.

The company also announced the second big hire of the month, naming Kyle Andrew EVP and chief marketing officer. Earlier in March, AEO appointed Peter Horvath as chief commercial and administrative officer.

Andrew previously served as head of global marketing at Kate Spade LLC, where she played a central role in re-positioning Kate Spade as a billion dollar global lifestyle brand. Prior to her position at Kate Spade, Andrew held senior marketing positions at Kenneth Cole and Gap.