Pittsburgh-based American Eagle Outfitters (NYSE:AEO), let out word Wednesday that sales approached record heights.
Total net revenue increased $76 million, or 8% to a record $1.04 billion compared to $965 million last year. Included in total net revenue this year was $40 million for Japan license royalties.
EPS were $0.38 for the quarter, compared to $0.34 for the prior-year quarter. Excluding restructuring charges of $0.01, the company’s adjusted EPS was $0.39.
Second-quarter total net revenue included $40 million recognized for license royalties from a third-party operator of AE stores in Japan, which contributed $0.15 of EPS in the second quarter.
Operating income of $82 million, which included approximately $3 million of restructuring charges, compared to $76 million last year.
Excluding the restructuring charges, adjusted operating income was $85 million and the adjusted operating margin of 8.1% compared to 7.9% last year. Both operating income and adjusted operating income included approximately $34 million from the Japan license royalties.
Said AEO chair Jay Schottenstein, "We had a number of wins and accomplishments in the second quarter, yet we were disappointed to report operating results below our expectations.
"We faced challenges largely stemming from underperformance in certain seasonal categories and a delayed start to back-to-school. Despite this, we delivered our 18th consecutive quarter of positive consolidated comparable sales growth."
Shares in AEO fell $1.99, or 12.2%, to $14.28
