American Eagle (AEO) Reports Sharp Increase In Q4 Profits And Strong Outlook

American Eagle Outfitters Co. (NYSE: AEO) shares jumped 8% in early trading, as it reported a Q4 net income of $59.3 million (29 cents per share), an increase of 81.3% from $32.7 million (16 cents per share), a year earlier.

Adjusted profit of 33 cents per share was in-line with analysts’ estimates. Sales rose 7.3% to $972 million comparing favorably to analysts’ estimate of $952.3 million.

American Eagle forecasts Q1 earnings of 15 cents to 17 cents per share. Analysts are expecting earnings of 15 cents.

The company has been modifying its merchandise mix to add more fashion, and lower prices as teens have gravitated to lower-price retailers like Aeropostale, Inc. (NYSE: ARO) and privately held Forever 21, in the downturn.