Executive Summary

• American Eagle Outfitters reported fiscal 2Q19 revenues of $1.04 billion, higher than the consensus estimate of $1.00 billion, and up 7.9% year over year. The company reported adjusted 2Q19 earnings per share (EPS) of $0.39, higher than the consensus estimate of $0.32 and higher than the year-ago period.
• American Eagle Outfitters comp sales rose 2% compared to a 9% increase in the year-ago period and lower than the consensus estimate of 2.9%. Aerie’s comparable sales increased 16% compared to 27% in the year-ago period and lower than the consensus estimate of 16.8%. American Eagle comparable sales declined 1%, following a 7% increase in the year-ago period and lower than the consensus estimate of 1%.
• For 3Q19, the company projects EPS to be $0.47 to $0.49, lower than the consensus estimate of $0.52. The company expects 3Q19 comparable sales growth in the low- to mid-single digits.