Who Said the Mall Was Dead? American Eagle Posts Better Than Expected Results, Shares Surge

In a dramatic narrative change, American Eagle has joined Walmart this morning in asserting dominance over a tattered and beleaguered retail landscape, dispatching weak performing yam eaters like Target and Macy’s into the trash heap of history.

AEO posted better than expected results. Obviously, the fashion experts at AEO have hit a note with a quasi-retarded millennial generation, stocking their stores with tank tops, hipster dresses, hoodies and flannel shirts.

Reports Q1 (Apr) earnings of $0.22 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.18; revenues rose 7.0% year/year to $749 mln vs the $731.07 mln Capital IQ Consensus.

Consolidated comparable sales increased 6%, following a 7% increase last year.
Gross profit increased 12% to $293 million and rose 170 basis points to a rate of 39.2% of revenue.
Inventory Total merchandise inventories at the end of the first quarter increased slightly to $334 million.
Second quarter 2016 ending inventory at cost is expected to be approximately flat.
Capital Expenditures For the quarter, capital expenditures totaled $24 million.
The company continues to expect capital expenditures to be in the range of $160 to $170 million for Fiscal 2016.
Co issues in-line guidance for Q2, sees EPS of $0.20-0.21, excluding non-recurring items, vs. $0.20 Capital IQ Consensus Estimate.
New CMO

Co announced that Kyle Andrew has been appointed EVP, Chief Marketing Officer, reporting to Chief Executive Officer, Jay Schottenstein, effective, June 6, 2016.

Share are surging in the pre-market, higher by 15%.