Sales at apparel chain
American Eagle Outfitters
continued to soar in October, while fellow mall-based teen retailer
reported another month of comps declines.
American Eagle said Wednesday that its same-store sales increased 8% in October, while total sales jumped 18% to $186.4 million. The company said the results exceeded management's expectations, and it raised its profit forecast for the third quarter.
The retailer estimates third-quarter earnings of 64 cents to 65 cents a share, up from its earlier guidance of 61 cents to 63 cents. Analysts polled by Thomson First Call have an average estimate for earnings of 64 cents a share.
Meanwhile, Hot Topic's same-store sales tumbled 7.2% in October, below its guidance for a mid-single digit drop. Total sales rose 1% to $60 million.
The seller of alternative stylings reiterated its forecast for third-quarter earnings of 16 cents a share, but cut its fourth-quarter earnings forecast to 33 cents to 44 cents a share, citing recent sales trends. In August, Hot Topic forecast earnings of 44 cents to 48 cents a share for the key holiday quarter.
Analysts, on average, forecast earnings of 15 cents a share for the third quarter and 35 cents for the fourth.
Fellow teen chains
Abercrombie & Fitch
will report their October sales figures Thursday morning, along with most other major retailers.