Latest press released have claimed American Eagle Outfitters Inc. to have announced its profit rating in terms of an hike during holiday Q – the primarily cause of the boost is related to high sales despite of unfavorable weather and careful expenditure on behalf of consumer.
As per Chief Executive, Jay Schottenstein – early nominated as permanent CEO last year in December after being credited with a quicker drift at apparel retailer – the 4Q was a challenging one for the apparel firm.
In contrary, other retailers like Nordstrom Inc., Macy’s Inc. and Wal-Mart Stores laid forward disappointing Qs due to warm weather that had crimped demand for cold-weather gear, more discerning consumer and aggressive discounting.
American Eagle post sales gains and reported earnings that came in at the high-end of its guidance. Upon this, the retailer was confident enough to having a better pace in near future. It also offered upbeat guidance for this Q.
INSIGHT: Teen retailers like American Eagle and rival Abercrombie & Fitch Co. have faced tough competition from fast-fashion players like Forever 21 and H&M that offer the latest styles at lower prices. But American Eagle has made progress this year in improving its merchandise and controlling its inventory levels.]
Not to mention, sales at store open atleast a year ago have shown a better-than-expected ratio i.e. 4% after being flat a year earlier.
Exclusive from MarketWatch: For the three months ended Jan. 31, American Eagle posted a profit of US$ 81.7 million, i.e. 42 cents/share, BULLISH from US$ 61.6 million, i.e. 32 cents/share, a year earlier. Revenue rate had hiked with 3.2% at US$ 1.11 billion.Adjusted earnings have shown estimates of 40 cents/share to 42 cents/share. Upon what forecast laid by Reuter had revenue worth US$1.11 billion.