American Eagle Misses Q2 Estimates as Online Sales Fall and Shoppers Return to Stores

Reuters  |

Image source: American Eagle Outfitters Second Quarter 2021 Investor Presentation, Sept. 2, 2021

By Praveen Paramasivam and Reshma George

American Eagle Outfitters Inc's quarterly revenue missed estimates on Thursday as its online sales took a hit from shoppers returning to physical stores on easing pandemic curbs, sending the shares of the apparel chain down 10%.

The company's second-quarter digital sales fell 5% from a year earlier, also hit by stiff e-commerce competition from firms including Amazon.com Inc and Poshmark, although it remained higher compared with pre-pandemic levels.

Revenue came under pressure from back-to-school selling season and some tax-free shopping events moving to the third quarter, American Eagle executives said on the earnings call.

American Eagle, which last month acquired logistics startup AirTerra, said it hopes to make digital sales account for half of its revenue in the longer term, up from 35% in the second quarter.

The owner of Aerie brand, however, said it expects a robust holiday season by booking products early and spending more on transporting goods to its stores, even as it grapples with industry-wide supply chain issues.

Total net revenue rose 35% to $1.19 billion in the second quarter ended July 31, missing Refinitiv-IBES estimates of $1.23 billion. However, it rose about 15% from pre-pandemic levels in 2019, below the median increase reported by U.S. consumer companies tracked by BMO Capital Markets analysts.

_____

Sources: Reuters, American Eagle Outfitters

Stock price data is provided by IEX Cloud on a 15-minute delayed basis. Chart price data is provided by TradingView on a 15-minute delayed basis.

Trending Articles

Bond Yields Have Risen Well Above Stock Dividend Yields. Are They a Buy?
We're at the Tail End of a Classic Video Game Stock Bust
Is Gold Really the Right Place for Your Money?
How Companies Can Succeed in AI Winter: Jeff Kagan
Utility Investing Is a Steady, Buy-and-Hold Play. Just Not in This Market
Why Nuclear Energy Is Now Part of The Road to Renewables
Our Inflation Nightmare Will Flatline in Six Months
California Wants 100% Electric Vehicles By 2035. Will Its Energy Grid Be Ready?

Market Movers

Sponsored Financial Content