American Eagle Outfitters share price up in after-hours trading as fashion retailer sees sales and profits soar in its year ended January 2016
Share price in American Eagle Outfitters rose in after-hours trading today, as the company revealed that profits almost trebled in its most recent set of results.
The fashion retailer announced revenue of $3.5bn (£2.5bn) for its year ended January 2016, up seven per cent from $3.3bn the year before, and net income of $218.1m, up 172 per cent compared with $80.3m.
"Initiatives to strengthen our merchandise and improve operational execution fuelled strong results in 2015," commented chief executive Jay Schottenstein.
For its fourth quarter, the company revealed revenue of $1.1bn, up three per cent from the prior year, and net income of $81.7m, up 33 per cent compared with $61.6m.
Despite the rising figures, Schottenstein was not totally upbeat about the results for the last three months.
"The fourth quarter was a challenging period for the apparel industry due to a number of macro factors," said Schottenstein. "Despite this, we achieved sales growth and a modest increase in operating income."
Shares in American Eagle sailed up 2.6 per cent in after-hours trading to $15.85.
Looking forward, Schottenstein said:
We are encouraged that our spring season is off to a good start against positive results last year. Our focus in 2016 will centre on continuous merchandise improvements, elevating our efforts on customer acquisition and optimising the strength of our operations and brands. I’m confident in our ability to drive further growth and deliver shareholder returns.