Teen clothing retailer American Eagle Outfitters (AEO) said Tuesday that its third-quarter profit rose 39% from last year, despite slightly lower revenue.
The Pittsburgh-based company reported third-quarter net income of $59.2 million U.S, or 28 cents U.S. per share, compared with $42.6 million U.S. , or 21 cents U.S. per share, in the year-ago period. Excluding one-time items, adjusted profit was 21 cents U.S. per share.
On average, Wall Street analysts expected a matching profit of 21 cents U.S. per share.
Sales edged down less than 1% from last year, to $749 million U.S., while same-store sales fell 4%. Same-store sales are a key indicator of a retailer's health, since they measure the performance of stores open at least one year.
American Eagle shares gained 71 cents, or 4.9%, in premarket trading Tuesday.
The Bottom Line
AEO was removed from the "recommended" lists of some experts late last September, when the stock was trading at $15.90 U.S.. The company has a 2.75% dividend yield, based on last night’s closing stock price of $18.36 U.S.
The stock has technical support in the $12-$13 U.S. price area. If the shares can firm up, some overhead resistance can be seen around the $16-$18 U.S. price levels, and, accordingly, experts remain on the sidelines for now.
American Eagle Outfitters (AEO) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
