American Eagle Outfitters Earnings Soar

American Eagle Outfitters Inc. reported a stronger-than-expected profit in its latest quarter as revenue jumped 12%.

Teen retailers such as American Eagle and rivals like Abercrombie & Fitch Co. have been trying to revive sales after a long slump. The sector has faced tough competition from fast-fashion retailers including Forever 21 and H&M that offer the latest styles at lower prices.

For the quarter ended Aug. 1, American Eagle reported a profit of $33.3 million, or 17 cents a share, up from $5.8 million, or three cents a share, a year earlier. The company's earnings benefited from a favorable income tax settlement that contributed about $2.5 million.

The company had expected per-share earnings between 11 cents and 14 cents.

Revenue increased to $797.4 million, above analysts' expectations for $770 million.

Sales excluding newly opened or closed locations rose 11%, compared with a 7% decrease last year.

For the current quarter, the retailer said it expects adjusted earnings of 28 cents to 31 cents a share, and comparable sales growth in the mid single-digit range.

Write to Ezequiel Minaya at [e-mail]

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August 19, 2015 09:35 ET (13:35 GMT)

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