AMERICAN EAGLE Outfitters, the teen-apparel chain that brought in a new chief executive officer in January, rose the most in more than seven weeks after raising its full-year profit forecast amid increasing sales.
The shares gained 4.9 per cent to $21.84 yesterday morning in New York, after earlier rising 5.3 per cent for the biggest intraday jump since June 29th.
The stock, up 36 per cent this year, reached the highest intraday price since March 2008.
CEO Robert Hanson, who joined American Eagle from Levi Strauss and Co, has been cutting back inventory, pushing for faster fashion-item turnaround and improving product assortments to boost sales and reduce markdowns.
Net sales in the first half rose 14 per cent to $1.45 billion from $1.27 billion a year earlier, according to yesterday’s statement.
Full-year profit will be $1.33 to $1.36 a share, up from a previous projection of $1.16 to $1.22 a share.
American Eagle, which operates more than 1,000 stores, said it sees comparable store sales rising in the mid-single digits in the third quarter. – (Bloomberg)
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