American Eagle Outfitters' August consolidated same store sales increased 23.9%. Comparable store sales for the American Eagle brand increased 26.6% for the month. The company provided third quarter earnings guidance and also announced the initiation of a cash dividend.
Based on the continuation of strong sales trends and solid merchandise margins, the Company raised its third quarter earnings guidance to a range of $0.56 – $0.58 per share, compared to $0.14 per share last year, which included a goodwill impairment charge of $0.11 per share related to Bluenotes. Previously, the Company stated that it was comfortable with third quarter earnings of $0.47 per share, which at that time was the First Call mean estimate for the third quarter.
The Company also announced that its Board of Directors voted to initiate a cash dividend payment at an annual rate of $0.24 per share. The first quarterly cash dividend of $0.06 per share was declared and is payable on October 8, 2004 to stockholders of record at the close of business on September 24, 2004.
Jim O'Donnell, Chief Executive Officer of American Eagle Outfitters commented, “The Board of Directors' decision to initiate a cash dividend reflects the company's excellent financial position, and signals confidence in our future outlook. Our strong cash flow enables us to grant a current return to our stockholders, while also providing ample cash to invest in future growth. We are excited about our growth initiatives, including our next U.S. concept, which is currently under development, as well as the continued expansion of the American Eagle brand.”
Total sales for the four-week period ended August 28, 2004, increased 34.0% to $208.4 million, compared to $155.6 million for the four-week period ended August 30, 2003. Comparable store sales for the American Eagle Outfitters stores increased 26.6% for the August period. Consolidated comparable store sales, which include American Eagle and Bluenotes stores, increased 23.9% for the month compared to the corresponding period ended August 30, 2003.
Total sales for the four-week period ended August 28, 2004 include $8.8 million from the Bluenotes operation, compared to $9.4 million for the corresponding period last year. The 6.5% sales decrease was due to a comparable store sales decline of 12.0%, partially offset by the strengthening of the Canadian dollar. The comparable store sales calculation excludes the impact of foreign currency fluctuations.
Total sales for the thirty-week period ended August 28, 2004 increased 23.9% to $972.2 million from $784.5 million for the thirty-week period ended August 30, 2003. Comparable store sales for the American Eagle Outfitters stores increased 14.9% for the thirty-week period. Consolidated comparable store sales, which include American Eagle and Bluenotes stores, increased 13.7% for the thirty-week period compared to the corresponding period ended August 30, 2003.
Total sales for the thirty-week period ended August 28, 2004 include $45.0 million from the Bluenotes operation, compared to $44.5 million for the corresponding period last year. The 1.1% sales increase was due to the strengthening of the Canadian dollar, offset by a comparable store sales decline of 3.3% for the period compared to last year. The comparable store sales calculation excludes the impact of foreign currency fluctuations.
