Earnings Preview: American Eagle Outfitters

| About: American Eagle (AEO)

American Eagle Outfitters (NYSE:AEO) is expected to report Q2 earnings before the market open on Wednesday, August 22 with a conference call scheduled for 9:00 am ET.


Analysts are looking for EPS of 21c on revenue of $719.29M. The consensus range is 14c-22c for EPS and $685.28M-$750M for revenue, according to First Call. On August 1, American Eagle raised its Q2 EPS outlook to 19c-21c from 13c-15c primarily due to stronger than expected sales. The company said Q2 net sales were $740M and same-store sales increased 9%, including sales from AEO Direct. During the quarter, the retailer named Mary Boland as Chief Financial and Administrative Officer and said it would incur an after-tax loss of $35M-$50M to exit 77kids. Analysts and investors will listen for comments from the company on its capital allocation plans, including dividends and buybacks, after saying in May that it would conduct a strategic review on capital. Additionally, the company may offer comments on the level of promotional activity in the quarter, as well as how it views the back-to-school and holiday seasons.