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American Eagle Outfitters, Inc. AEO reported its first-quarter financial results after the bell Wednesday. Here's a look at the details.

The Details: American Eagle Outfitters reported adjusted earnings of 17 cents per share and quarterly revenue of $1.143 billion, up from $1.08 billion from the same period last year, but below the analyst estimate of $1.

15 billion. The company reported store revenue rose 4% and digital revenue increased 12%. Aerie revenue of $373 million rose 4%, with comp sales up 6%.

American Eagle revenue of $725 million increased 8%, with comp sales growing 7%. American Eagle reported a gross profit of a $464 million increase of 12%, reflecting a gross margin rate of 40.6%, expanding 240 basis points.

The company said margin expansion was driven by strong inventory management, the company’s shift to a more profitable clearance strategy, lower product and transportation costs and leverage on expenses including rent, delivery, and distribution and warehousing. “Our strong first quarter results underscore the power of our iconic brand portfolio and demonstrate great progress on our Powering Profitable Growth strategy. We achieved record revenue, amplifying American Eagle’s and Aerie’s leading market positions and opportunity in casual apparel,” said Jay Schottenstein , American Eagle Outfitters’ CEO.

“We continued to offer exciting merchandise collections and customer activations, providing compelling in-store and digital.