American Eagle Outfitters Q3 Profit Down, Comparable Sales Up 3%

(RTTNews) - American Eagle Outfitters Inc. (AEO) reported that its net income for the third-quarter declined to $63.73 million or $0.36 per share from $75.76 million or $0.41 per share in the prior year.

Excluding restructuring and related charges of $0.01 per share, the company's Adjusted EPS was $0.37 for the third quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.38 per share. Analysts' estimates typically exclude special items.

Total net revenue increased 2% to $960.43 million from $940.61 million last year. Analysts expected revenue of $960.81 million for the quarter.consolidated comparable sales were up 3%, following a 2% increase last year.

Based on an anticipated comparable store sales increase in the mid-single digits, the company expects fourth quarter 2017 EPS to be approximately $0.42 to $0.44. Analysts project fourth-quarter earnings of $0.39 per share. The guidance excludes potential asset impairment and restructuring charges. Last year's fourth quarter reported EPS of $0.30 included approximately $0.09 per share of asset impairment, restructuring and related charges. Excluding these items, last year's fourth quarter adjusted EPS was $0.39.

The company continues to expect fiscal year 2017 capital expenditures in the range of $160 million to $170 million, with roughly half of the spend related to store remodeling projects and new openings, and the balance to support the e-commerce business, omni-channel tools and general corporate projects.