American Eagle Outfitters Inc. shares shot up to a new high yesterday after the teen retailer from Marshall reported a near tripling in fourth-quarter profits that beat analysts' expectations even though management twice raised its own forecasts.

		Graphic: American Eagle stock soars

Net income for the three months ended Jan. 31 hit $101.2 million, or $1.32 per share. That looks a lot better than the disappointing $35.4 million, or 49 cents a share, the retailer earned in the same holiday period a year ago. The numbers were adjusted for losses from the sale of an underperforming Canadian group of stores.

With shoppers scooping up its denim and dorm wear at full price, the company said profit margins improved and total sales for the quarter rose 37.4 percent to $674 million. Total sales for the entire year were up 31.1 percent to $1.881 billion.

Net income for the year rose to $214 million, or $2.85 per share, up from $60 million, or 83 cents, for the previous 12 months. Sales in stores open at least a year rose 21.4 percent.

Like many retailers, the company is reviewing its accounting for leases because of new regulatory guidelines, but officials do not expect that will have a material impact on earnings.

Executives told analysts that the chain plans a big marketing push to tighten its grip on the college-age crowd, including sponsorship of the annual sun-n-fun MTV Spring Break beach fest featuring scads of swimsuit- clad youths. The rush comes even as the new fiscal year is starting off strong, with February sales in existing stores up 32.4 percent.

"We're proud but not content," said Roger Markfield, vice chairman and president. He assured analysts the company could improve on last year's performance, noting helpfully that a recent meeting reviewing the most recent quarters found numerous mistakes.

Shares in the merchant of jeans and polo shirts closed yesterday at $58.87, up $3.57 on the day and $11.77 so far this year. American Eagle in the past year initiated its first dividend and announced a 2-for-1 stock split that goes into effect Monday.

The 800-plus store chain expects to open between 35 and 40 new stores this year. While it is starting to run out of places to grow in North America, the retailer is tentatively looking at a possible expansion into Asian markets, Chief Executive Officer James O'Donnell said.

In addition, a new design team hired to develop a chain of stores targeting a slightly older consumer should have its first test site open in fall 2006. The name and details of the concept are still under wraps, but officials expect to open between three and five test locations.

More immediately, the retailer will be sending a sizable contingent to spring break locations to get the pulse of its customers and to send them back to school with lots and lots of American Eagle backpacks.