Why Did American Eagle Outfitters’ Shares Jump 15%?

-33.67%
Downside
25.79
Market
17.11
Trefis
AEO: American Eagle Outfitters logo
AEO
American Eagle Outfitters

  • American Eagle Outfitters’ shares jumped 15% in after-hours following its Q1 fiscal 2016 earnings report
  • The company’s revenues and earnings per share came in ahead of the market expectations
  • Revenues were driven by a surge in digital traffic, which bolstered American Eagle’s online sales
  • Fewer promotional activities led to an improvement in gross margins
  • Store consolidation and strong expense management led to a slower-than-revenue growth in SG&A expenses
  • As a result, EBITDA increased 25% and EPS jumped 47% — (7% decline in shares outstanding also helped)

AEO corrected earnings article

Have more questions about American Eagle Outfitters? See the links below:

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for American Eagle Outfitters
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