American Eagle Shares Soar After Profit Outlook Raised

Shares of American Eagle Outfitters soared 11% in premarket trade Wednesday, after the apparel retailer raised it third-quarter profit outlook, citing reduced markdowns and lower expenses. The company now expects per-share earnings, excluding non-recurring items, of 22 cents, above its previous outlook of 17 cents to 19 cents. Third-quarter revenue "declined slightly," the company said, as same-store sales fell 5%. Analysts were projecting revenue to decline to $846 million from $857 million a year ago, and same-store sales to fall 4.7%. "We are encouraged by our ability to reduce promotional activity, particularly given the challenging and highly promotional retail climate," said Interim Chief Executive Jay Schottenstein. The stock had dropped 13% so far this year through Tuesday, compared with a 2% rise in the SPDR S&P Retail ETF and a 10% gain in the S&P 500.