Source: Company reports

1Q16 RESULTS

American Eagle Outfitters reported 1Q16 EPS of $0.22 versus the consensus estimate of $0.18. Total revenues were $749.4 million versus expectations of $731.4 million. Comps increased by 6% versus consensus of 4.6%. Comps for the American Eagle Outfitters brand were up 4% (versus expectations of 3.7%) and Aerie comps were up 32% (compared to consensus of 15.75%). In the quarter, the company opened three stores and closed four. Internationally, the company opened six licensed stores. Inventory was up 0.5% at the end of the period, compared to the 7.1% increase in sales during the quarter. Management expects inventory to be flat, at cost, at the end of the second quarter.

2016 OUTLOOK

EPS guidance for 2Q16 is $0.20–$0.21 versus consensus of $0.20. That is based on a comp increase in the low-single-digit range versus consensus of 1.7%. For the full year, capex is expected to be $160–$170 million.