American Eagle Outfitters Inc (NYSE:AEO) shares are trading higher Tuesday after the company reported better-than-expected financial results.
American Eagle said third-quarter revenue decreased 3% year-over-year to $1.24 billion, which beat average analyst estimates of $1.21 billion, according to Benzinga Pro. The company reported quarterly earnings of 42 cents per share, which beat average estimates of 22 cents per share.
“I’m pleased to deliver a third quarter that exceeded our expectations, with profit margins meaningfully improved from the first half of the year. Bold actions to rationalize inventory and reduce expenses are paying off,” said Jay Schottenstein, executive chairman and CEO of American Eagle.
American Eagle ended the quarter with $798 million in inventory, up 8% year-over-year.
The retailer expects fourth-quarter brand revenue to be down in the mid single-digits. Fourth-quarter margins are expected to be between 32% and 33%.
“While significant progress has been made in right-sizing inventory, management is taking a cautious view given what is likely to be a highly promotional Holiday season,” American Eagle said.
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AEO Price Action: American Eagle has a 52-week high of $26.08 and a 52-week low of $9.46.
The stock was up 14.9% at $14.94 at time of publication, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.
