American Eagle beats by $0.03, beats on revs; guides Q3 EPS in-line; Q2 comps -7% vs HSD decline guidance and -8% estimate
Reports Q2 (Jul) earnings of $0.03 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.00); revenues fell 2.2% year/year to $711 mln vs the $688.93 mln consensus.
- Q2 comps -7% vs HSD decline guidance and -8% estimate
- Q2 gross profit rate 33.4% vs ~32% estimate; gross margin reflected the de-leverage of buying, occupancy and warehousing costs on negative comparable sales, which was largely offset by favorability in merchandise and design costs and a slight improvement in the markdown rate.
- Operating income decreased 59% to $12 mln; operating margin decreased 240bps to 1.7%