They really
knocked it out of the park.
Total sales for the year-to-date thirty-five week period ended September 30,
2006 increased 17% to $1.635 billion, compared to $1.395 billion for the
thirty-five week period ended October 1, 2005. Comparable store sales increased
11% for the year-to-date period.
Based on better-than-expected
September performance, the company is raising its third quarter earnings
guidance to $0.61 to $0.63 per share, compared to $0.47 per share last year.
Previous third quarter guidance was $0.56 to $0.58 per share. Third quarter
guidance includes stock option expense of approximately $0.01 per share. For the
year, stock option expense is expected to be approximately $0.04 to $0.05 per
share.
And all of the things that
I thought would make this a good stock a few weeks ago turned out to be right on the mark:
September sales performance was driven by a well-received fall collection,
which added freshness to stores during a key back-to-school selling period.
Stores featured fresh colors, on-trend silhouettes and strong key items.
Additionally, in early September, the company's new intimates sub-brand, aerie
by American Eagle, debuted across the chain, to a positive customer
response.
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