American Eagle Outfitters, Inc (NYSE:AEO) today reported EPS of $0.48 for the third quarter ended November 2, 2019, compared to $0.48 for the prior-year quarter.
The Pittsburgh-based company reported total net revenue increased $63 million, or 6% to a record $1.07 billion compared to $1.00 billion last year.
Consolidated comparable sales increased 5%, following an 8% comparable sales increase last year, and were positive across both store and digital channels.
By brand, American Eagle’s comparable sales increased 2%, following a 5% increase last year. Aerie’s comparable sales increased 20%, building on a 32% increase last year and marking the 20th consecutive quarter of double-digit sales growth.
Gross profit rose 2% to $407 million from $399 million. The gross margin rate of 38.2% compared to 39.8% last year. The decline primarily reflected increased markdowns.
Jay Schottenstein, AEO’s CEO commented, "Strong top line performance across brands and channels led to our 19th consecutive quarter of comparable sales growth and record third quarter revenue.
"In a tough environment, we reported EPS in line with our guidance. We continued to deliver on our strategic pillars, with Aerie and American Eagle Jeans demonstrating strong sales and profit growth."
During the third quarter, the company returned $55 million to shareholders through cash dividends and share repurchases. It also paid cash dividends of $23 million and repurchased 2.0 million shares for $32 million.
Year to date, AEO has repurchased a total of 6.3 million shares for a total of $112 million and have 35.4 million shares remaining under the current authorization.
AEO shares began Wednesday down 84 cents, or 5.6%, to $14.28
