Image source: bargainmoose, CC BY-SA 2.0, via Flickr
(Reuters) – American Eagle Outfitters Inc on Wednesday forecast first-quarter revenue of more than $1 billion as strong demand helped the apparel retailer sell more products of its eponymous and Aerie labels at full price.
The Pittsburgh, Pennsylvania-based company’s shares rose about 5% in extended trading as its forecast came in above market estimates of $904.1 million, according to IBES data from Refinitiv.
Like its rivals Levi Strauss Co and Abercrombie & Fitch Co, American Eagle has recorded stronger sales as more customers spent their stimulus checks on the company’s jeans, trousers and tops.
“In light of the current environment, it’s truly gratifying to see consumer optimism, strong demand across channels,” American Eagle Chief Executive Officer Jay Schottenstein said in a statement.
Aerie, which sells work-from-home favorites including lingerie and loungewear, has been exceeding the company’s expectations, Schottenstein added.
American Eagle also forecast operating income of about $120 million for the first quarter, compared with $48 million in 2019.
Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath.
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Source: Reuters
