By Subrat Patnaik
(Reuters) - Teen apparel retailer American Eagle Outfitters Inc (N:AEO) said its holiday season sales were off to a "solid start" and named Jay Schottenstein, who was heading the company on an interim basis, as its permanent chief executive.
The company said on Wednesday it expected same-stores sales to grow in the mid-single digits in the holiday quarter, compared with flat growth last year.
Analysts polled by research firm Consensus Metrix are expecting 3.9 percent growth for American Eagle's fourth quarter.
"The holiday season is off to a solid start, and we are optimistic as we look ahead," said Schottenstein, who previously served as the company's CEO for a decade, until he stepped down in 2002.
Clothing will be the leading product category for holiday purchases, retail industry research firm NPD Group said, adding that nearly half of the respondents polled planned to purchase it this holiday season.
The Pittsburgh, Pennsylvania-based company also forecast adjusted earnings of about 40-42 cents per share for the fourth quarter, in-line with estimates, according to Thomson Reuters I/B/E/S.
American Eagle, unlike rivals Aeropostale Inc (N:ARO) and Abercrombie & Fitch Co (N:ANF), has managed to win back shoppers by upgrading its merchandise to reflect trends such as festival- and bohemian-inspired dresses and tops, shirt dresses, and denim pencil skirts.
"It was a very strong quarter for AEO amid a disastrous quarter for most mall-based retailers," Nomura analyst Simeon Siegel said.
The company, which has also benefited from shifting away from once popular logo-centric clothing, said its net income jumped to $74.1 million, or 38 cents per share, in the third quarter ended Oct. 31, from $9 million, or 5 cents per share, a year earlier.
Analysts' on average had expected earnings of 34 cents per share.
Total net revenue rose 7.6 percent to $919.1 million, but still fell short of the $927.4 million that analysts were expecting.
Overall same-store sales rose 9 percent in the third quarter, in line with the average analyst estimate, helped by strong performance in its underwear brand, Aerie.
American Eagle's shares, which had gained nearly 14 percent this year to Wednesday's close of $15.81, were up about 2.7 percent at $16.24 in extended trading.