American Eagle same-store sales beat Street in soaring Q1
Specialty apparel retailer American Eagle Outfitters Inc. can comfortably perch on strong first quarter 2019 results that included record revenue.
Same-store sales growth of 6% exceeded Wall Street estimates, while total net revenue rose 8% to $886 million from $823 million the prior year period, setting a new high. Net income increased 2% to $40.75 million from $39.93 million. Adjusted earnings per share (EPS) increased 4% to $0.24, compared to adjusted EPS of $0.23 in fiscal 2018.
By brand, American Eagle’s same-store sales increased 4%, while Aerie’s same-store sales increased 14%. Jay Schottenstein, chairman and CEO of American Eagle, said first-quarter sales and EPS were ahead of the company’s expectations.
“American Eagle’s ongoing market share gains are led by its dominant jeans business, and Aerie’s consistent double-digit growth has been fueled by the brand’s strong appeal to both existing and new customers,” said Schottenstein. “Looking ahead, we see significant runway for each of our brands. We are committed to improved profit flow through as we begin to lap our 2018 investments, to support continued earnings growth and attractive shareholder returns.”
Based on an anticipated same-store sales increase in the low single digits, American Eagle expects second quarter 2019 EPS to be approximately $0.30 to $0.32. Last year, the company reported EPS of $0.34 for the second quarter.
During the quarter, the company opened seven American Eagle stores and closed five, ending with 936 American Eagle stores, including 151 Aerie side-by-side locations. Additionally, the company opened four Aerie stand-alone stores, ending with 119 Aerie stand-alone stores. Internationally, the company ended the quarter with 235 licensed stores compared to 217 last year.