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A customer walks past an American Eagle store in the mall.
Tim Boyle | Getty Images News | Getty Images
American Eagle shares fell on Thursday after the company reported second quarter revenue lower than analysts’ estimates, as its e-commerce activity slowed from a year earlier.
Its shares were down 9% in pre-market news trading.
American Eagle earnings, however, exceeded expectations. The company, which also owns the Aerie lingerie brand, said cutting promotions and containing costs have helped fuel its profitability in the summer months.
Here’s how American Eagle fared for the quarter ended July 31 compared to what Wall Street expected, using Refinitiv’s estimates:
- 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 earlier. Excluding one-off items, it gained 60 cents per share, ahead of the 55 cents analysts were looking for.
Revenue increased 35% to $ 1.19 billion, from $ 883.5 a year ago. This came below analysts’ forecast for $ 1.23 billion.
Aerie’s revenue of $ 336 million was up 34% from the previous year. 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 rather than visit stores due to the Covid pandemic. Digital revenues jumped 66% on a two-year basis, American Eagle said.
The company did not offer any 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.
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