PITTSBURGH – American Eagle Outfitters, the teen clothing retailer, posted second quarter numbers that surpassed investor expectations: net income increased 13 percent to $81.3 million from $72.1 million last year and sales rose 17 percent to $703.2 million from $602.3 million last year. Thomson Financial’s analysts had been predicting revenue of $697.8 million.
The company’s second quarter gross profit increased to $316.4 million from $275.3 million, but declined slightly as a percent to sales from 45.7 percent last year to 45 percent this year.
“I am pleased that we achieved our 14th consecutive quarter of record sales and earnings,” said CEO Jim O’Donnell. “Our strong second quarter results reflected sound merchandise management and good expense control. We also made progress in the quarter toward our key goals of building brands for growth, optimizing our channels of distribution, and strengthening our operations for productivity improvements and continued profitable growth.”
American Eagle focuses on young men and women between the ages of 15 and 25. The company operates 840 stores in all fifty states in America and 74 stores in Canada.