American Eagle (AEO) 1Q16 Results: Strong Results in a Tough Environment

Executive Summary

• American Eagle Outfitters reported 1Q16 EPS of $0.22 versus the consensus estimate of $0.18.
• Total revenues were $749.4 million versus expectations of $731.4 million. Comps increased by 6% versus consensus of 4.6%. Comps for the American Eagle Outfitters brand were up 4% (versus expectations of 3.7%) and comps at Aerie were up 32% (compared to consensus of 15.75%).
• EPS guidance for 2Q16 is $0.20–$0.21 versus consensus of $0.20. That is based on a comp increase in the low-single-digit range versus consensus of 1.7%.