Financial Results Review - Research Report on American Eagle Outfitters

NEW YORK, September 11, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on American Eagle Outfitters, Inc. (NYSE: AEO). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/reports?keyword=AEO

Highlights from our AEO Report include:

• Strong Second Quarter Results - On August 19, 2015, American Eagle Outfitters, Inc., released results for the second quarter of 2015. The Company generated revenue of $797 million, reflecting an increase of 12% from $711 million in Q2 2014. Consolidated comparable sales rose by 11%, compared to a 7% decline last year quarter. Gross Profit for the period amounted to $285.0 million, higher than $237.5 million in previous year quarter. Moreover, gross margin rate edged up 230 basis points to 35.7%. In addition, operating income of the Company increased to $53.1 million from $12.0 million in prior year quarter. Further, net income in the second quarter of 2015 came at $33.3 million, against $5.8 million in same period last year. Diluted earnings per share grew significantly from $0.03 in prior year period to $0.17 in Q2 2015.

• Year-to-Date Performance - In the first six months of 2015, the Company generated net revenue of $1.5 billion, up by 10.3% from $1.4 billion in first half of 2014. Consolidated comparable sales increased by 9%, compared to a 9% decrease last year period. In addition, gross profit for the period amounted to $547.3 million, compared to $463.4 million in previous year period. Further, net income of the Company grew from $9.7 million in previous year period to $62.3 million in first half of 2015. Diluted earnings per share came at $0.32 during the first half of the year, compared to $0.05 in prior year period.

• Outlook - The Company expects EPS to be approximately $0.28 to $0.31 in the third quarter 2015, based on an anticipated mid single-digit increase in comparable sales. This guidance excludes potential asset impairment and restructuring charges, and compares to adjusted EPS of $0.22 last year. For fiscal 2015, the company expects capital expenditures of approximately $150 million, which includes the chain-wide roll-out of the point of sale system, supporting technologies and the completion of new fulfillment center, as well as new and remodeled store investments. The Company also aims to achieve 1,003 - 1,013 consolidated stores by end of 2015.

• Views of Management - Jay Schottenstein, Interim CEO of American Eagle Outfitters, said, "Both American Eagle and Aerie delivered strong sales and earnings growth across channels. We have two of the best-positioned brands in the marketplace today, and we are well poised to capitalize on our strengths. We have vast opportunity for ongoing improvements and will strive to deliver continued growth and returns to our shareholders."  

To find out how this influences our rating on American Eagle Outfitters, Inc. read the full report in its entirety here: http://www.aciassociation.com/reports?keyword=AEO      

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