(Filed Under Financial and General Interest News). Young adult clothing and intimate apparel retailer American Eagle Outfitters reported an 87.3 percent jump in profit for the third quarter of 2011.
Profit for the retailer in the third quarter of 2010 was impacted by an investment loss, leading to the stark contrast in this year’s income. Sales rose 11 percent to $832 million, or 27 cents a share, with same-store sales up 5 percent. Same-store sales for aerie, the company’s standalone intimate apparel stores, rose 8 percent. Gross margin fell 4.5 percent to 37.1 percent of sales, which the company stated was due to markdowns and the rising cost of raw materials.
For the fourth quarter, American Eagle raised its earnings forecast to a range of 40 to 44 cents a share, up from analysts’ expectations of 39 cents a share.
"I am encouraged by our progress in the third quarter and the continued momentum into the holiday season," stated C.E.O. Jim O’Donnell. "Looking ahead to 2012, we have tremendous opportunity to capitalize on the strength of our brands and drive future profitable growth."
American Eagle Outfitters, Inc. currently operates 937 American Eagle Outfitters stores, 158 aerie stores and 21 77kids stores across the U.S. and Canada.
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