American Eagle's Same-Store Sales Climb, As Does its Guidance

American Eagle Outfitters Inc. said Tuesday that same-store sales for its latest quarter climbed 9%, leading the teen retailer to raise its earnings forecast for the period to 34 cents per share.

The company previously expected earnings of between 28 cents and 31 cents for the period, compared with adjusted earnings per share of 22 cents during the same period a year earlier, the company said in a press release.

Teen retailers like American Eagle and rival Abercrombie & Fitch Co. have faced tough competition from fast-fashion retailers including Forever 21 and H&M that offer the latest styles at lower prices. For American Eagle, last quarter's same-store sales growth compares with a 5% decline a year earlier and marks a third straight quarter with an increase.

"In a highly challenging retail environment, we are extremely pleased to see our AE and Aerie brand customers respond positively to product and quality enhancements. We continue to experience greater full-priced selling and less promotional activity, resulting in profit margin expansion," said Jay Schottenstein, Interim CEO of American Eagle.

The company also announced that it was acquiring Tailgate Clothing Company, a sports-inspired apparel brand with a college town store concept, in a cash-and-stock deal valued at $11 million. Terms of the deal were not disclosed.

Write to Ezequiel Minaya at [e-mail]

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November 03, 2015 07:25 ET (12:25 GMT)

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