American Eagle Q1 sales to exceed $1 billion

American Eagle Q1 sales to exceed $1 billion

Executives have said it is on track to double its Aerie business to $2 billion in annual sales by 2023.

 

American Eagle Outfitters said Wednesday that its business grew more than expected for the fiscal first quarter as stimulus checks and pent-up demand boosted sales of jeans , fitted tops and leggings.

 

The company said revenue was on track to top $1 billion. Analysts had been forecasting American Eagle to earn 23 cents a share on sales of $904.1 million, according to a Refinitiv poll. Its shares rose more than 8% in after-hours trading.

 

American Eagle said consumer demand for both comfortable underwear and loungewear items was stronger than expected. This was due in part to external factors, including economic stimulus , new consumer optimism and customer demand.

 

American Eagle’s denim business is particularly strong, and consumers are also buying more tops, Chief Executive Officer Jay Schottenstein said in an interview .

 

"We think the environment is going to be a very good environment over the next few years, " he said. "People are going to want to spend money and go out, and they are going to get back to their previous normal levels. "

 

The trend is another sign that people are ready to dress up again after months of sitting at home in sweatpants or pajamas during the pandemic . Other retailers, such as Levi 's, have recently made similar comments about the popularity of denim, especially among Gen Z customers.

 

Last summer, in the midst of the acute health crisis, Aerie created a new athleisure brand called Offline by Aerie. The brand sells printed sports bras , jogging pants , graphic T-shirts and other active gear.

 

Aerie chiefs believe the company is still on track to double its Aerie business to $2 billion in annual sales by 2023.

 

Additionally, American Eagle said its profit margins have been improving as it sells more products at full price and relies less on promotions.

 

American Eagle's stock has risen more than 270% in the past 12 months. Its market value of $5.5 billion is larger than that of rival and Hollister owner Abercrombie & Fitch.


American Eagle

Q1

Sales

<<:  GMV reached $158.8 billion, and private brands occupied the largest market share in the United States

>>:  Kroger in the US competes with Amazon and others in building robot logistics centers

Recommend

Amazon's low-price mall is trying to challenge Temu

On November 12 last year , Amazon launched its lo...

What is nektomwatches? nektomwatches Review, Features

Nektomwatches is a direct-to-consumer micro-brand ...

That man is back! Cross-border sellers: trembling

Now, the shoe has finally dropped. According to f...

What is VK? VK Review, Features

VK.com (formerly VKontakte.ru, referred to as VK)...

What is Momoso? Momoso Review, Features

Momoso is a mobile app for overseas shopping devel...

Another market is rising! Amazon dominates the US sporting goods market

On September 14, according to the latest research...

What is Piastrix? Piastrix Review, Features

Piastrix, an e-wallet headquartered in St. Peters...

What is holahair? holahair Review, Features

holahair focuses on a hair salon wig goods store. ...

What is Donghui Yuntong? Donghui Yuntong Review, Features

Donghui Yuntong (Shenzhen Donghui Yuntong Interna...

Peak season warning! Multiple Amazon warehouses continue to be overstocked

The problem of margin calls broke out completely....

What is novostella? novostella Review, Features

Novostella is a leading brand of smart floodlights...