Teen apparel retailer American Eagle's sales rise 3.2 pct

Teen apparel retailer American Eagle Outfitters Inc reported a 3.2 percent rise in quarterly sales, largely helped by demand for its Aerie brand in the holiday shopping season.

The company's shares rose 5.2 percent in extended trading on Wednesday.

American Eagle's results, which closely follow rival Abercrombie & Fitch Co's surprise rise in same-store sales, indicate that teen apparel retailers may be winning back young shoppers who were flocking to fast-fashion companies such as Inditex's Zara and H&M.

American Eagle has also benefited from controlling inventories to boost margins and responding faster to changing fashion trends.

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The company said comparable sales in the Aerie brand, which sells intimates and personal care products for women, rose 26 percent in the fourth quarter ended Jan. 30, topping the 13.5 percent rise analysts polled by Consensus Metrix had expected.

American Eagle's net income rose to $81.7 million, or 42 cents per share, in the quarter, from $61.6 million, or 32 cents per share, a year earlier.
The company's net revenue rose to $1.11 billion from $1.07 billion.