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This apparel retailer had a great quarter


Not all teen apparel retailers are struggling. Just ask American Eagle Outfitters.

The company reported a better-than-expected rise in quarterly sales and profit as demand for its products rose even amid a sluggish retail environment.

American Eagle’s net income surged 39.3% to $40.5 million, or 22 cents per share, in the quarter ended April 30.

Net revenue increased 7% to $749.4 million. Same-store sales increased 6%, on top of a 7% increase in the year-ago period.

The gains come as American Eagle has been working to improve the quality of its merchandise and also investing in the upgrade of its online and mobile platforms.

The chain’s Aerie lingerie store division have proven particularly popular. First-quarter sales for the Aerie brand rose 32% over the year-ago period.

“In a tough retail environment, AEO delivered a strong first quarter, driven by compelling merchandise, strategic investments and solid execution across the organization,” said Jay Schottenstein, CEO, American Eagle Outfitters. “We achieved higher sales and profitability following strong growth last year. We’ve built a strong model for success based on our leading brands, and will remain focused on maximizing our business and delivering profitable growth."’

American Eagle forecast a second-quarter profit of 20-21 cents per share. Analysts on average expected a profit of 20 cents share.

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