American Eagle Q3 Profit Tops Estimates

American Eagle Outfitters AEO reported better-than-expected earnings for the third quarter and named Jay L. Schottenstein as CEO, effective immediately. The Pittsburgh, Pennsylvania-based company posted quarterly profit of $74.1 million, or $0.38 per share, compared to $9 million, or $0.05 per share, in the year-ago quarter. . Earnings from continuing operations climbed 59 percent to $0.35 per share. Its revenue climbed 8 percent year-over-year to $919.1 million. However, analysts were expecting earnings of $0.34 per share on revenue of $927.36 million. Sales in stores open at least a year climbed 9 percent for the quarter. Gross profit rose 17 percent to $368 million in the quarter, while operating income surged to $109 million from $74 million. During the quarter, American Eagle repurchased 1 million shares for $15 million. At the end of the third quarter, total merchandise inventories rose 2 percent to $480 million from $469 million last year. Jay Schottenstein, chief executive officer commented, "We are extremely pleased with our third quarter results. Both the American Eagle and Aerie brands performed exceptionally well, delivering increased sales and profitability. It is gratifying to see positive momentum, which speaks volumes to the strength of our teams, brands and operations." For the current quarter, American Eagle projects earnings of $0.40 to $0.42 per share, versus analysts' estimates of $0.41 per share. American Eagle shares rose 2.15 percent to $16.15 in after-hours trading.