Agenda-setting intelligence, analysis and advice for the global fashion community.
American Eagle Outfitters said on Thursday it expects revenue and operating income for the second quarter to be above the prior forecast, sending its shares up 6 percent in premarket trade.
The teen apparel maker now expects revenue for the quarter to be flat to a year earlier, compared with its prior forecast of down low-single digits. It sees operating income exceeding previous guidance of $25 million to $35 million.
“Demand picked up in late June, with strength continuing as we introduced our initial Fall collections in July,” chief executive officer Jay Schottenstein said.
The company had in May cut its full-year revenue forecast as demand eased for non-essentials, including apparel, due to still-high inflation.
ADVERTISEMENT
Separately, American Eagle said chief operating officer, Michael Rempell would be leaving in early fiscal 2024.
The company is scheduled to report second-quarter results on Sept. 6.
By Granth Vanaik; Editor Sriraj Kalluvila
Learn more:
American Eagle’s Hottest Business Isn’t Jeans — It’s Logistics
After acquiring two supply-chain start-ups last year, the teen retailer wants to build an ‘open source’ shipping and storage network it thinks can someday be a bigger business than selling clothes.
