American Eagle (AEO) reported earnings on Thur 31 May 18 (b/o)

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American Eagle beats by $0.01, beats on revs; guides Q2 EPS above consensus 

• Reports Q1 (Apr) earnings of $0.23 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.22; revenues rose 8.0% year/year to $823 mln vs the $811.46 mln Capital IQ Consensus. 
• Consolidated comparable sales increased 9% vs. +5.8% ests. By brand, American Eagle's comparable sales increased 4% and Aerie's comparable sales increased 38%.
• The gross margin rate increased 50 basis points to 37.0% of revenue compared to 36.5% last year, reflecting rent leverage and a favorable markdown rate, partially offset by increased digital delivery expense.
• Co issues upside guidance for Q2, sees EPS of $0.27-0.29, excluding non-recurring items, vs. $0.25 Capital IQ Consensus Estimate. Based on an anticipated comparable sales increase in the mid-single digits.