Shares Of American Eagle Rally Following Third Quarter Guidance Increase - American Eagle Outfitters (NYSE:AEO)

Shares of

American Eagle OutfittersAEO

spiked higher in Wednesday's pre-market session after the company raised its third quarter guidance. American Eagle expects to earn $0.22 per share in its third quarter, above prior guidance of $0.17 to $0.19. This also compares favorably to the $0.19 per share the company earned in the third quarter a year ago. “Third quarter earnings exceeded our expectations and margins were ahead of last year. We are encouraged by our ability to reduce promotional activity, particularly given the challenging and highly promotional retail climate,” said Jay Schottenstein, Interim CEO in a

press release. “The team is making steady progress on merchandise improvements. Yet as we approach the holidays, we remain cautious given the ongoing weakness in mall traffic. The restructuring activities reflect our resolve to strengthen our business to deliver higher profitability and returns to shareholders.” American Eagle will report its third quarter results on December 4 after market close. At that time the company intends on offering fourth quarter guidance.

Market News and Data brought to you by Benzinga APIs