American Eagle Outfitters Inc. (NYSE:AEO) shares surged 28% on Thursday as the clothing company’s second quarter earnings topped Wall Street estimates.
Earnings per share were $0.45, up 15% year-over-year and significantly ahead of estimates of $0.20.
Revenue for the quarter was $1.28 billion, down 1% year-over-year, beating estimates of $1.24 billion.
Comparable sales were down 1% from the year-ago period, with its Aerie brand growing by 3% while the American Eagle brand saw a 3% drop.
“We were pleased to see an improvement in the business during the second quarter driven by higher demand, lower promotions and well-managed expenses, all of which exceeded our expectations,” American Eagle CEO Jay Schottenstein said in a statement.
Schottenstein added that the fall season has started positively, driven by stronger product offerings and recent marketing campaigns featuring Sydney Sweeney and Travis Kelce.
“We look forward to building on our progress and the continued strength of our iconic brands to drive higher profitability, long-term growth and shareholder value," he said.