American Eagle misses by $0.01, beats on revs; guides Q2 EPS below consensus (12.96)
- Reports Q1 (Apr) earnings of $0.16 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.17; revenues rose 1.7% year/year to $761.8 mln vs the $741.76 mln Capital IQ Consensus.
- Consolidated comparable sales were up 2% vs. guidance for a flat to low single digit decline, following a 6% increase last year.
- Gross profit decreased to $278 million from $293 million last year with a gross margin rate of 36.5% to revenue compared to 39.2% last year, a 270 basis point decline. The margin declined primarily due to increased promotional activity and higher shipping costs related to a strong digital business.
- Co issues downside guidance for Q2, sees EPS of $0.15-0.17 vs. $0.23 Capital IQ Consensus. Based on anticipated comparable store sales in the range of flat to a low single digit decline.
- "The first quarter results reflected mall traffic headwinds, especially early in the quarter, with improved trends over Easter and a strong digital business throughout... The six million shares repurchased this quarter reflects the company's strong cash flow, healthy balance sheet and confidence in our brands and long-term strategic initiatives."