Reuters

(Reuters)

American Eagle, Aeropostale Lift Views for Holiday Quarter

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Teen apparel retailers American Eagle Outfitters Inc (AEO) and Aeropostale Inc (ARO) raised their estimates for the holiday shopping quarter as margins improved due to fewer discounts.

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American Eagle said on Thursday it now expected fourth-quarter earnings of 32-34 cents per share, up from its previous forecast of 30-33 cents.

Aeropostale said it still expected to report a loss, but less than it had forecast. The company estimated its net loss at 25-31 cents per share, compared with the 37-44 cents it had expected.

Teen apparel retailers, one of the weakest retail sectors, cut inventories going into the holiday shopping season to avoid discounting heavily.

American Eagle's shares were up 2.5 percent at $15 premarket, while Aeropostale's were up 7.5 percent at $2.43.

(Reporting by Sruthi Ramakrishnan in Bengaluru; AEditing by Ted Kerr)