American Eagle Outfitters raises 3Q outlook

American Eagle Outfitters raises 3rd-quarter outlook after Sept. sales metric tops estimates

• On 8:40 am EDT, Thursday October 8, 2009

PITTSBURGH (AP) -- Teen apparel retailer American Eagle Outfitters Inc. on Thursday raised its third-quarter guidance after better-than-expected performance in September.

The company now expects fiscal third-quarter earnings of 24 cents to 26 cents per share, up from previous guidance of 22 cents to 25 cents per share. Excluding an expected tax benefit, the company predicts earnings of 19 cents to 21 cents per share.

Analysts polled by Thomson Reuters, on average, predict a profit of 20 cents per share. Analyst estimates typically exclude one-time items.

The retailer also said sales in stores open at least one year were flat in September, beating analyst expectations. The metric is considered a key retail performance indicator because it measures growth from existing stores rather than newly opened ones.

In premarket activity, shares added 69 cents, or 4.1 percent, to $17.35, putting them within striking distance of their 52-week high of $17.41 set Sept. 29.