American Eagle (AEO) Second Quarter 2021 Results

American Eagle (AEO) Second Quarter 2021 Results

A customer walks past an American Eagle store in the mall.

Tim Boyle | Getty Images News | Getty Images

American Eagle released mixed second-quarter results on Thursday, with profits exceeding analysts’ estimates, but sales fell due to the decline in its e-commerce activity from a year earlier.

The company, which also owns the Aerie lingerie brand, said weak promotions and controlled costs helped boost profitability during the summer months.

Its shares fell more than 4% in pre-market news trading.

Here’s how American Eagle fared compared to what Wall Street expected using Refinitiv’s projections for the quarter ended July 31:

  • Earnings per share: 60 cents adjusted vs. 55 cents expected
  • Turnover: $ 1.19 billion against $ 1.23 billion expected

American Eagle’s net income reached $ 121.5 million, or 58 cents per share, from a loss of $ 13.8 million, or 8 cents per share, a year ago. Excluding one-off items, it gained 60 cents per share, ahead of the 55 cents sought by analysts.

Revenue increased 35% to $ 1.19 billion, from $ 883.5 a year ago. That’s lower than analysts’ estimate of $ 1.23 billion.

Erie’s revenue of $ 336 million was up 34% from a year ago. American Eagle’s revenue increased 35% to $ 846 million during the same period.

Digital sales are down 5% from 2020 levels. Last summer, many consumers chose to shop online instead of going in-store due to the COVID pandemic. American Eagle said digital revenue increased 66% on a two-year basis.

The company did not offer an outlook in its earnings press release.

As of Wednesday’s market close, shares of American Eagle have risen nearly 50% year-to-date. The company’s market capitalization is $ 5.04 billion.

This story is developing. Please check for updates.

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