I should have seen it coming. Yesterday, casual apparel retailer American Eagle (NASDAQ:AEOS) announced some remarkable numbers after the bell. Just last week, I was in the store myself, spending money and plenty of it -- which isn't all that unusual, except that a goodly portion of that splurge can be chalked up to my dad, who was by far the oldest person within several hundred meters of this particular store.
American Eagle isn't actively looking for my father's business, but I do find it significant that it currently stocks products that appeal to him, me, and the target teenagers who watched us try on clothes with bemusement. The company's "Abercrombie & Fitch (NYSE:ANF) on a budget" act -- I'm sure they'll love that comment -- looked well-practiced, as American Eagle had a good selection of attractive clothes that tread carefully the fine line between fashionable and traditional.
The proof is in the figures. Revenues for the month ended Nov. 29 were up more than 32% year over year to $197 million. Same-store sales, meanwhile, were up more than 24%. For the 10 months through November, meanwhile, revenues jumped 27% while "comps" jumped more than 18%. In a crowded market that also includes Gap (NYSE:GPS) and Aeropostale (NYSE:ARO), the company is looking sharp.
And those figures would be even better but for its Canadian Bluenotes business, the sale of which it plans to close on soon. Management now projects Q4 EPS of between $1.08 to $1.10, up from previous guidance of $1 to $1.03 -- not counting a Bluenotes-related charge seen between $0.08 and $0.11 per share -- putting the year's haul at $2.59 or better.
That's up huge from last year's disappointing results. In 2003 the company missed on merchandising, which in retail means bad news: Same-store sales were negative, and markdowns hurt margins. This year -- despite what some might consider the "kiss of death" from my dad -- things are going far better, and inventory management is substantially improved. Investors have reaped impressive rewards in 2004 as a result.
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Fool contributor Dave Marino-Nachison doesn't own any of the companies in this story.
