Mall fixture American Eagle Outfitters, Inc. (AEO) on Wednesday lifted its full year earnings outlook, after reporting strong second quarter sales. The stock is climbing nearly 5 percent in pre-market trading.
American Eagle's line of summer apparel was a hit with teens, and the company is expected to carry momentum into the back-to-school shopping season.
For the year, the company now expects earnings per share from continuing operations in the range of $1.33 to $1.36, compared to adjusted $0.97 last year. The guidance is based on comparable store sales growth of mid single-digits for the third quarter and low single-digits for the fourth quarter.
On average, 25 analysts polled by Thomson Reuters expect earnings of $1.32 per share for the year. Analysts' estimates typically exclude special items.
In May, the company had lifted its fiscal 2012 adjusted earnings per share outlook to $1.16 to $1.22 from its earlier guidance of $1.06 to $1.12, assuming low to mid-single digit comparable store sales growth for the year.
The retailer expects earnings per share from continuing operations in the third quarter to be in the range of $0.37 to $0.38 per share, compared to $0.30 last year. Analysts expect earnings of $0.37 per share.
Net income for the second quarter edged down to $19.03 million from $19.67 million. Earnings per share slid to $0.09 from $0.10. Results included discontinued operations related to the closure of the children's business 77kids.
Earnings from continuing operations climbed to $0.21 from $0.13. Wall Street expected earnings of $0.21 per share for the quarter.
Net sales increased to $739.68 million from $669.12 million. Analysts expected revenues of $719.29 million.
Online sales, which include the businesses of ae.com and aerie.com., increased 28 percent, compared to a 17 percent increase last year.
Comparable store sales, including AE Direct, increased 9 percent, compared to a 1 percent increase last year.
Among peers, Abercrombie & Fitch Co. (ANF) last week reported a lower profit for the second quarter that topped estimates, amid a modest growth in sales. The casual apparel retailer backed its full-year earnings view issued earlier this month.
AEO, which closed at $20.83 on Tuesday, is advancing 4.7 percent in pre-market activity.
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