Earnings Preview: American Eagle Outfitters

American Eagle Outfitters (AEO) is expected to report Q1 earnings before the market open on Wednesday, May 27, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are looking for a profit of 7c on revenue of $613.29M. The consensus range is 6c-10c for EPS, and revenue of $600.94M-$631.13M, according to First Call. The company recently reported that April same-store sales fell 5%, less than expected. At the same time, the retailer reaffirmed its Q1 EPS forecast for 6c-7c, up from a prior forecast of 4c-7c, and reported Q1 revenue of $612M.

Analyst Views

In a May 26 note, FBR Capital said it expects the retailer will report an in-line quarter, with EPS coming in at 7c. The firm said it's maintaining a conservative stance on Q2 and that initial markup may still be under some pressure, though much improved from Q1. The firm believes Q2 may be slightly impacted by a later Labor Day, but said the retailer appears to be taking a very deliberate stance with its dress and other categories.