American Eagle Outfitters Q3 profit up 59%
PITTSBURGH — American Eagle Outfitters Inc. reported that its third-quarter net income increased 59%, helped by a year-ago charge. The chain posted fourth-quarter guidance that was above Wall Street expectations.
For the August-October quarter, the company said net income was $52.4 million, compared with $33 million in the same period last year. Analysts expected 26 cents per share.
Revenue rose 11% to $831.8 million, from $751.5 million last year. Analysts expected $820.3 million. Same-store sales rose 5%, as did online revenue.
“I am encouraged by our progress in the third quarter and the continued momentum into the holiday season,” said Jim O’Connell, CEO.
Merchandise margins fell due to higher costs for cotton and markdowns, and expenses rose as the company opened new stores and ramped up advertising.