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American Eagle Outfitters Inc reported quarterly revenue that missed estimates on Thursday as the apparel retailer’s online business slowed following vaccinations and the easing of some Covid-19 curbs, sending its shares tumbling 12 percent before the bell.
The company’s second quarter digital sales fell 5 percent from a year earlier, hurt by customers shopping more at brick-and-mortar stores as well as stiff competition from e-commerce giants including Amazon.com Inc.
Major retailers including Target Corp and Gap Inc have reported a slowdown in digital sales in their latest quarterly reports, although they remain higher compared with pre-pandemic levels.
American Eagle’s consolidated revenue from its physical stores, however, increased 73 percent from a year earlier in the second quarter ended July 31.
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The company’s Aerie brand, which sells work-from-home favourites lingerie and lounge wear, posted a 34 percent rise in revenue to $336 million, while American Eagle label sales jumped 35 percent to $846 million.
Total net revenue increased 35 percent to $1.19 billion, mainly as temporary store closures hammered demand for apparel last year. However, the figure came short of Refinitiv-IBES estimates of $1.23 billion.
Excluding items, American Eagle earned 60 cents per share, beating estimates of 55 cents, as it sold more goods at full prices.
By Praveen Paramasivam and Reshma Rockie George; Editor: Ramakrishnan M.
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American Eagle Outfitters Inc said sales of its jeans and tops was accelerating, after the apparel retailer reported a first-quarter results beat on increased spending, driven by stimulus checks.
