American Eagle beats expectations on profit, raises guidance

investing.com:

Investing.com — American Eagle Outfitters Inc (NYSE:AEO) stock was falling after-hours after the retailer beat expectations on profit in the second quarter.

The company reported earnings per share of 25 cents on revenue of $1.2 billion. Analysts expected earnings per share of 16 cents on revenue of $1.2 billion.

Shares were down 2.6%. They are up 23% so far this year.

Comparable store sales for its American Eagle brand fell 2%, and revenue of $767 million was down 1%. Aerie revenue rose 2% to $380 million.

For the third quarter American Eagle expects revenue to rise in the low-single digits, better than expectations. It sees operating income in a range of $115 million to $125 million.

For the full year, American Eagle raised guidance, seeing revenue rising low-single digits. Operating income is expected to be in a range of $325 million to $350 million, also up from prior guidance. The company said this reflects better than expected business performance in the second quarter, in addition to strengthened demand and continued profit improvement in the back half of the year.