American Eagle Outfitters stung by holiday quarter guidance

|About: American Eagle Outfitters... (AEO)|By:, SA News Editor

American Eagle Outfitters (NYSE:AEO) reports comparable sales increased 2% in Q3. The retailer ran into a tough comp of +9% from a year ago.

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.