American Eagle's second-quarter net income dropped 70 percent as sales weakened and some expenses rose.
But the teen retailer's results managed to beat analysts' estimates. The Pittsburgh company's stock surged in Wednesday premarket trading.
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For the period ended Aug. 2, American Eagle Outfitters Inc. earned $5.8 million, or 3 cents per share. That compares with $19.6 million, or 10 cents per share, a year earlier.
Analysts polled by FactSet expected breakeven results.
Selling, general and administrative expenses increased to $190.1 million from $186.3 million. Depreciation and amortization expense climbed to $35.4 million from $29.7 million.
Revenue dipped 2 percent to $710.6 million from $727.3 million. Still, this topped Wall Street's forecast of $689.5 million.
Sales at stores open at least a year fell 7 percent, following a 7 percent decline a year earlier. This metric is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
Going forward, American Eagle anticipates third-quarter earnings of about 17 cents to 19 cents per share. Analysts predict 18 cents per share.
Shares of American Eagle gained $1.28, or 11 percent, to $12.87 before the market open.