After the close on Wednesday, retailer American Eagle Outfitters (NASDAQ: AEOS) announced that it enjoyed an excellent holiday sales performance and boosted its fourth-quarter forecast.
The trendy retailer announced that December sales spiked 20 percent to $522.4 million while same-store sales jumped 13 percent. The consensus on the Street was for an 8.7-percent increase in same-store sales.
As a result, American Eagle Outfitters lifted its fourth-quarter profit projection by a penny to a range of 64 cents to 65 cents per share. Analysts are currently forecasting a profit of 65 cents per share.
In other news from the company, the firm announced that it has entered a new, four-year employment agreement with Chief Executive James V. O'Donnell, setting his salary for the company's fiscal 2007 at $1.35 million.
According to a filing with the Securities and Exchange Commission, O'Donnell's salary for the company's 2008 fiscal year ended Jan. 31, 2009, will be $1.48 million; $1.6 million for fiscal 2009 and $500,000 for fiscal 2010. Furthermore, O'Donnell will also receive options with grant date values equal to $4.95 million for fiscal 2006, $2.97 million for fiscal 2007 and $1.98 million for fiscal 2008, according to the filing.
O'Donnell's salary for fiscal 2006 was $1 million and for fiscal 2005 was $950,000. He also received his fiscal 2006 stock option award on Dec. 28, 2006, consisting of 442,308 shares with an exercise price of $31.05 per share, vesting in equal increments over three years on each anniversary of the grant date, and expiring seven years from the grant date.
Today's positive sales news could help to win over Wall Street. According to Zacks, 17 of the 18 analysts following the firm rate it a hold or worse. Any upgrades from this dour group could help to boost the shares during the near term.