American Eagle beats by $0.03, beats on revs; guides Q3 EPS in-line
Reports Q2 (Jul) earnings of $0.17 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.14; revenues rose 12.1% year/year to $797 mln vs the $769.4 mln consensus. reports Q2 comps +11% vs +HSD guidance and +8% estimate; Q2 gross profit rate 35.7% vs ~36% estimateTotal merchandise inventories at the end of the second quarter increased 4% to $409 million compared to $393 million last year. At cost per foot, inventory increased 5%, consistent with our guidance and below our sales growth rate. Third quarter 2015 ending inventory at cost is expected to be approximately flat.
Co issues in-line guidance for Q3, sees EPS of $0.28-0.31, excluding non-recurring items, vs. $0.28 Capital IQ Consensus Estimate; CO expects COmp store sales to increase in the mid-single digit range.