Executive Summary

• American Eagle Outfitters reported fiscal 1Q19 revenues of $866.3 million, higher than the consensus estimate of $855.5 million, and up 7.7% year over year. The company reported adjusted 1Q19 earnings per share (EPS) excluding restructuring charges of $0.24, higher than the consensus estimate of $0.21 and higher than the year-ago period.
• American Eagle’s first quarter comp sales rose 4% compared to the consensus estimate of 1.7%, while Aerie’s comparable sales increased 14%, higher than the consensus estimate of 13.3%.
• For 2Q19, the company projects earnings per share of $0.30-0.32, lower than the consensus estimate of $0.35, and lower than last year’s second quarter EPS of $0.34. Management expects comparable sales to increase in the low single digits compared to the consensus estimate of 2.7%.