American Eagle issues upbeat guidance

American Eagle issues upbeat guidance


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.

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I am a lecturer at the University of Economics in Bratislava, department of Banking and International Finance. I have a Ph.D. academic degree, my dissertation was focused on major markets. Commodities and stock markets are also the main focus of my research and publication activities. I have approximately 10 years of investing experiences. My investments mostly focus on small- to mid-cap companies of energy sector, financial and technology.