Investing.com - Shares of clothing retailer American Eagle Outfitters Inc (NYSE:AEO) climbed on Tuesday, getting a boost amid optimism over the company’s upcoming earnings release.
There has been some buzz in the retail sector, in general, this earnings season as most retailers have managed to improve their results through an increased financial discipline and a bigger focus on online sales.
The timing of American Eagle’s earnings is also being seen as a positive. While the company is reporting later in the season, it is closer to back to school, and that is increasing investors’ sentiment over the sector, believing good consumer sentiment and a healthy American economy will result in greater sales. In addition, American Eagle's customers are primarily teens, making back to school shopping crucial for the company's sales.
Analysts expect that when American Eagle reports this week it will show that it earned $0.16 per share on revenue of $813.97 million. American Eagle's shares were up about 5% just before closing bell.