American Eagle Outfitters Acquires Tailgate Clothing ; Boosts Q3 EPS View

(RTTNews) - American Eagle Outfitters, Inc. (AEO) Tuesday announced the acquisition of Tailgate Clothing Co. The purchase price was about $11 million paid in cash and stock.

Tailgate owns and operates Tailgate, a vintage, sports-inspired apparel brand with a college town store concept, and Todd Snyder New York, a premium menswear brand.

Founder and Creative Director, Todd Snyder joins as Executive Vice President, reporting to Chad Kessler, Global Brand President, American Eagle Outfitters.

Jimmy Olsson will join as Vice President and will continue to lead the day-to-day operations of Tailgate and Todd Snyder New York.

Further, American Eagle Outfitters said in the third quarter, comparable sales increased 9 percent.

The company raised its third quarter earnings per share expectation to $0.34 per share, representing growth of 55 percent from adjusted earnings per share of $0.22 last year. The previous earnings per share guidance range was $0.28 to $0.31.

The guidance is from continuing operations and excludes potential asset impairment and restructuring charges.

On average, 27 analysts polled by Thomson Reuters expect earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude special items.