American Eagle Outfitters (AEO) - Get Report posted stronger-than-expected fourth quarter earnings Wednesday but sees profits for the first quarter of the current financial year that missed Wall Street's forecasts.
American Eagle said earnings for the three months ending on February 2 came in at 43 cents per share, down 17.3% from the same period last year but one penny ahead of the Street consensus forecast. Group revenues, American Eagle said, edged 1.26% higher to $1.244 billion but fell just shy of the consensus estimate of $1.26 billion, as same-store sales rose 6% from last year.
Looking into 2019, the group said it sees first quarter earnings of between 19 cents and 21 cents per share, well shy of the 24 cents per share forecast form Refinitiv, with comparable store sales rising in the 'low single digits. Full year capital expenditures in the range of $200 million to $215 million, the company said.
"American Eagle and Aerie continued to deliver consistent performance by combining product innovation and great merchandise with an improved customer experience across channels," said CEO Jay Schottenstein. "As we head into 2019, we will continue to leverage the strength of our brands, selling channels and the team's commitment to continually raising the bar for our customers."
"I'm extremely proud of our results over the past several years," he added "The strength of our balance sheet and free cash flow enables us to make important investments in our business to fuel market share gains, future growth and returns to our shareholders."
American Eagle shares were marked 2.7% lower in after-hours trading immediately following the earnings release to indicate a Thursday opening bell price of $20.74 each.