American Eagle Outfitters, Inc. (NYSE:AEO) shares are diving premarket Thursday after the company reported mixed second-quarter results.
The company reported adjusted EPS of 39 cents, beating the analyst consensus of $0.38.
Revenues rose 8% year-over-year (Y/Y) to $1.29 billion, missing the street view of $1.31 billion. American Eagle Comp sales rose 5%, while Aerie Comp sales increased 9%.
Store revenue rose 7%, and digital revenue increased 12% in the quarter.
Gross profit rose 10% Y/Y to $499 million, with a gross margin rate of 38.6%, up 90 basis points. This growth was driven by higher merchandise margins due to favorable product costs and expense leverage, particularly in rent and digital delivery costs.
Total ending inventory grew by 4% Y/Y to ...
