UPDATE: American Eagle Outfitters Posts Better-Than-Expected Q2 Results, Shares Jump

Shares of American Eagle Outfitters (NYSE: AEO) jumped more than 11% in pre-market trading after the company reported upbeat results for the second quarter. The Pittsburgh, Pennsylvania-based company posted quarterly earnings of $5.81 million, or $0.03 per share, compared to $19.59 million, or $0.10 per share, in the year-earlier period. Its revenue fell to $710.6 million from $727.3 million. However, analysts were expecting earnings of $0.00 per share on revenue of $690 million. American Eagle's same-store sales dropped 7%. Gross profit fell 3% to $238 million, while operating income slipped 59% to $12 million.Selling, general and administrative expense rose 2% to $190 million in the quarter. At the end of the second quarter, total merchandise inventories dropped 15% to $393 million.In the quarter, American Eagle opened 20 new stores.American Eagle now expects Q3 earnings of $0.17 to $0.19 per share, versus analysts' estimates of $0.18 per share.Jay Schottenstein, Interim CEO, said, “Although the second quarter results were slightly ahead of our expectations, they do not reflect our potential.”American Eagle shares jumped 11.22% to $12.89 in pre-market trading.