American Eagle Q2 profit more than doubles
PITTSBURGH — American Eagle Outfitters' second-quarter net income more than doubled to $19.7 million from $9.7 million in the year-ago period. The teen retailer credited the jump on increased revenue, growing online sales and fewer markdowns.
Revenue for the period ended July 30 rose 4% to $675.7 million from $651.5 million, surpassing Wall Street's $652 million estimate. Same-store sales were flat compared with a 1% decline in the prior-year period.
Revenue for AEO Direct, which includes ae.com, aerie.com and 77kids.com, rose 16% on increased traffic and a higher conversion rate.
The chain said that increased cotton costs will likely squeeze its merchandise margin during the period.