Shares of American Eagle Outfitters (NYSE: AEO) gained roughly 5% in the first half of trading on Thursday, and was up by 4.5% as of 2:13 p.m. EST. The driving force behind that rise was a pair of company news releases and a presentation about management's plans. If all goes according to expectations, the future could be bright for this fashion retailer .
American Eagle Outfitters has decided to start breaking out the results of its Aerie nameplate. That was a pretty important decision, and the fourth quarter shows why. According to the update management provided, American Eagle expects Q4 adjusted operating income to be around $95 million, up from just $77 million in the prior-year quarter, Lower advertising costs and higher selling prices helped that along.
The bulk of the positives here, however, came from Aerie, where sales rose in the high-20% range, and its e-commerce channels, which should show double-digit percentage growth across both of the company's nameplates. But, notably, the company expects to report a sales decline in the low-double-digit percentage range for its namesake American Eagle stores. So investors can anticipate something of a mixed bag when the retailer delivers the final report on March 3.
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Why American Eagle Outfitters Stock Jumped 5% Today