American Eagle Outfitters
said Tuesday that its second-quarter profit grew 24%, beating both its own and Wall Street's targets, as sales and margins improved.
The teen-clothing retailer earned $72.1 million, or 47 cents a share, up from $58 million, or 37 cents a share, a year earlier. Analysts polled by Thomson First Call expected earnings of 46 cents a share; earlier this month the company had lifted its forecast to 45 cents to 46 cents a share.
Sales rose to $602.3 million from $515.9 million, while same-store sales grew 10%.
American Eagle's gross profit percentage grew to 45.6% from 44.2%, which the company attributed to higher merchandise margins and the leveraging of rent expense.
For the third quarter, the retailer forecast earnings of 52 cents to 54 cents a share, bracketing analysts' mean estimate of 53 cents.
Shares of American Eagle were up 64 cents, or 1.9%, to $35.15 in premarket trading.