June same-store sales results trickled in Wednesday, as Wall Street waits for the bulk of retailers to report lackluster numbers today.
Shares of American Eagle Outfitters Inc. spiked in electronic trading Wednesday, up 7 percent, to $27.90, about an hour after the bell, as the teen retailer posted an 8 percent increase in June comparable-store sales and narrowed its second-quarter earnings guidance. At the bell, the stock closed down more than 1 percent, to $26.03.
AEO said spring and summer sell-through rates were strong and that the company was pleased with its inventory position heading into the back-to-school season.
A wide array of analysts, who predict overall poor sales results for June, expect the teen retail chain to deliver stronger numbers. June is typically slow for retailers, who heavily discount merchandise to clear room for b-t-s goods.
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AEO said same-store sales for the five-week period ending July 7 increased 8 percent, down from an 11 percent gain in the year-earlier period. Total sales for the same period increased 15 percent, to $270.2 million, up from $235.4 million in the comparable 2006 period.
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The retailer said it now expected second-quarter earnings of between 35 cents and 36 cents a share, narrowed from its previous earnings guidance of 34 cents to 36 cents a share. Consensus estimates are for second-quarter earnings of 36 cents a share.
Shares of Chico’s FAS Inc. fell 5 percent, to $22.45, after the Ft. Myers, Fla., retailer reported June same-store sales down 7 percent from the year-earlier period.
Total sales for the five-week period ended July 7 increased more than 4 percent, to $159.6 million, up from $152.8 million reported for June 2006.
Chico’s operates 953 women’s specialty stores under its namesake and the White House|Black Market and Soma Intimates brands.
Chico’s chief financial officer Charles Kleman said in a pre-recorded voice call that Chico’s same-store sales fell 8 percent, and White House same-store sales fell 4 percent during the period.