American Eagle Outfitters, Inc. (NYSE: AEO) plummeted in early Wednesday trading on quarterly earnings
The Pittsburgh-based company reported total net revenue increased $120 million, or 14% to $965 million compared to $845 million last year.
Approximately $40 million of the revenue increase was due to the shifted retail calendar.
During the second quarter, the company returned $24 million to shareholders through cash dividends. As a result of strong free cash flow, we ended the quarter with total cash and investments of $363 million compared to $193 million last year.
Based on an anticipated comparable sales increase in the high-single digits and total revenue growth in the mid-single digits, reflecting the approximate $40 million revenue shift into the second quarter due to the shifted retail calendar, management expects third quarter 2018 EPS to be approximately $0.45 to $0.47.
Earnings per Share was $0.34 for the quarter ended August 4, 2018, compared to $0.12 for the quarter ended July 29, 2017, up 183%. EPS of $0.34 increased 79% compared to adjusted EPS of $0.19 last year.
AEO CEO Jay Schottenstein commented, "The second quarter results exceeded our expectations, delivering record sales and 79% growth in adjusted earnings. This marked our 14th consecutive quarter of comparable sales growth, with the American Eagle and Aerie brands posting positive results across both stores and e-commerce.
"Driven by exceptional product, teamwork and execution, itโs gratifying to see strength throughout our business, as we capitalize on the broad appeal of our brands and leading merchandise assortments."
Shares in AEO lost $2.83, or 10.4%, to $24.45
