American Eagle continues to reveal impressive returns as other retailers in the teen category struggle. Second quarter results showed net revenue increased 12 percent to a record $797 million from $711 million last year.
The company reported diluted EPS of $0.17 for the second quarter ended August 1, 2015, a significant increase from EPS of $0.03 for the comparable quarter last year, and above EPS guidance of $0.11 to $0.14.
Consolidated comparable sales increased 11 percent, compared to a 7 percent decrease last year. In the quarter, the company opened six new stores, including four factory stores, and closed three locations, including two AE and one Aerie store. The company also opened seven international licensed stores, including the first stores in South Korea and Singapore.
Jay Schottenstein, interim CEO commented, “I’m pleased to report another strong quarter, and to see positive momentum continue. The team is delivering exceptional execution, and our customers have taken notice of improvements to our merchandise and overall customer experience. Both American Eagle and Aerie delivered strong sales and earnings growth across channels.
Management expects third quarter 2015 EPS to be approximately $0.28 to $0.31, based on an anticipated mid single-digit increase in comparable sales, excluding potential asset impairment and restructuring charges.