Source: Company reports/Coresight Research

1Q18 Results

American Eagle Outfitters reported 1Q18 revenues of $823 million, up 8.0% year over year and beating the $811 million consensus estimate. Adjusted EPS was $0.23, above the $0.22 consensus estimate and up 43.8% from the year-ago quarter. Comparable sales were up 9.0% year over year in the quarter, the company’s 13thconsecutive quarter of positive comps. The company posted positive comps for both the brick-and-mortar and e-commerce channels. By brand, American Eagle reported 4.0% comps and Aerie reported 38.0% comps. Digital sales grew by 20.0% in the quarter. American Eagle Outfitters continues to leverage its leading position in jeans and bottoms, and the company reported record jeans sales during the quarter. Moreover, the company reported market share gains in the lingerie segment, thanks to Aerie’s strong performance during the period. Store closures: American Eagle Outfitters ended the quarter with a total of 935 American Eagle stores, including 118 Aerie side-by-side locations. During the quarter, the company opened four American Eagle stores and closed two. The company opened one Aerie stand-alone store and closed one during the quarter, ending the year with 109 Aerie stand-alone stores.

Outlook

For 2Q18, the company anticipates a mid-single-digit comp increase and adjusted EPS of $0.27–$0.29, compared with the $0.25 consensus estimate.