Gross margin as a percentage of sales rose 20 bps to 40.2%, despite a slight increase in markdown activity.
SG&A expenses fell 60 bps to 23.4% as management kept a tight position on costs.
Operating margin was up 70 bps to 12.6% of sales.
American Eagle ended the quarter with inventory of $493M, up 3%.
Guidance: AEO sees Q4 EPS of $0.37-$0.39 vs. $0.45 consensus.
Previously: American Eagle Outfitters EPS and revenue in-line (Nov. 30)
AEO -11.00% premarket to $16.83.