American Eagle Outfitters reports surge in quarterly earnings

American Eagle Outfitters Inc reported a jump in quarterly earnings on Wednesday, posting earnings per share (EPS) of $0.22 for the first quarter ended April 30, up 47% from $0.15 last year.

Total net revenue increased 7 percent to $749 million from $700 million last year.

Net income rose to $40.5 million, or 22 cents per share, from $29.055 million in the same period last year.

Shares in company surged on Wednesday after its first quarter results topped expectations.

Same-store sales rose 6 percent in the first quarter, higher than the 4.7 percent increase predicted by analysts, according to Bloomberg.

Comparable sales of the company’s intimate apparel ‘Aerie’ brand rose 32 percent in the first quarter, well-above what analysts polled by Consensus Metrix had expected of a 14.9 percent rise.

“That category (Aerie), we posted positive double-digit, growth across major businesses including bras, undies, apparel,” Jennifer Foyle, global brand president of Aerie, said on a post-earnings conference call.

Foyle said that marketing campaigns and the brands apparel collection have been successful in driving new customers to Aerie.

Jay Schottenstein, Chief Executive Officer commented, “In a tough retail environment, AEO delivered a strong first quarter, driven by compelling merchandise, strategic investments and solid execution across the organization.

“We achieved higher sales and profitability following strong growth last year. I’m proud of how the team delivered, and I’m optimistic about our future. We’ve built a strong model for success based on our leading brands, and will remain focused on maximizing our business and delivering profitable growth.”

The retailer said that it expects second quarter 2016 EPS to be approximately $0.20 to $0.21.