American Eagle raises full-year profit view after strong third quarter

Teen clothing retailer American Eagle Outfitters Inc reported a higher third-quarter profit, helped by a jump in same-store sales, prompting it to raise its full-year earnings forecast for the second time this year.

Shares of the company were up 6 percent in premarket trading.

The company now expects full-year earnings of between $1.38 and $1.40 per share from continuing operations, up from its prior forecast of $1.33 to $1.36.

Analysts on average were expecting earnings of $1.37 per share for the year, according to Thomson Reuters I/B/E/S.

The company's initiatives to keep its fashion fresh resonated with its teen clientele, leading to a 10-percent jump in same-store sales in the quarter ended October 27.

It also gained from pricing its merchandise between rivals Abercrombie & Fitch Co and Aeropostale Inc.

Net income for the quarter rose to $78.6 million, or 39 cents per share, from $52.4 million, or 27 cents per share, a year ago. Sales rose 11 percent to $910 million.

Total merchandise inventories fell 13 percent to $481 million.

American Eagle shares closed at $19.39 on Tuesday on the New York Stock Exchange.