Shares of American Eagle Outfitters Inc. rallied 3.1% in premarket trade Thursday, after the apparel retailer reported a fiscal fourth-quarter profit that matched expectations but beat on sales, provided an upbeat outlook and raised its dividend. Net income for the quarter to Feb. 3 rose to $94.0 million, or 52 cents a share, from $54.6 million, or 30 cents a share, in the same period a year ago. Excluding non-recurring items, such as a benefit from recent tax legislation, adjusted earnings per share came to 44 cents, in line with the FactSet consensus. Revenue rose to $1.23 billion from $1.10 billion, just above the FactSet consensus of $1.21 billion, while same-store sales growth of 8% beat expectations of a 7.2% rise. The gross margin rate decreased to 34.6% or revenue from 35.4%, reflecting higher promotional activity. The company expects first-quarter same-store sales to rise in the mid-single digit percentage range, while the FactSet consensus is for a 3.2% rise. Separately, the company raised its quarterly dividend by 10% to 13.75 cents a share, to be payable April 27 to shareholders of record on April 13. The stock has soared 19% over the past three months, while the S&P 500 has gained 2.8%.
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