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11h ago

American Eagle Surges on Q2 Beat, Sees Low-Single-Digit Comp Growth Ahead

After a tough spring with an inventory write-down, management credits stronger demand, tighter promotions and recent celebrity campaigns for the turnaround.

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Overview

  • Earnings per share came in at $0.45 on revenue of $1.28 billion, topping estimates of $0.20 and $1.24 billion, respectively.
  • Comparable sales fell 1% as Aerie rose 3% and the namesake American Eagle brand declined 3%.
  • The company guided to low-single-digit comparable-sales growth for both the third and fourth quarters.
  • Shares jumped about 25% in after-hours trading following the results.
  • American Eagle completed a $200 million accelerated share repurchase, paid $21 million in dividends, ended Q2 with $126.8 million in cash, and reported inventory of $718 million.