Robin Driver
Sep 5, 2019
American Eagle achieves record quarterly revenues despite disappointing comps
Robin Driver
Sep 5, 2019
Continued strong growth at American Eagle Outfitters’ Aerie lingerie brand helped drive the Pittsburgh-based apparel retailer’s record-breaking sales in the second quarter. However, shares in the company dropped 13% on Wednesday, as slowing comps came in under Wall Street’s expectations.
For the second quarter ended August 3, 2019, the company announced total net revenue of $1.04 billion, an increase of $76 million, or 8%, compared to the $965 million reported in the prior-year period.
While Aerie boasted a comparable sales increase of 16%, the retailer’s namesake flagship brand saw a 1% decline, with whole-company consolidated comps posting a 2% rise. According to CNBC, analysts surveyed by Refinitiv had expected American Eagle to report a 3.1% increase in comparable sales.
The company’s quarterly net income totaled $64.98 million, or $0.38 per diluted share, up from $60.33 million, or $0.34 per diluted share, in Q2 2018.
“We had a number of wins and accomplishments in the second quarter, yet we were disappointed to report operating results below our expectations,” said American Eagle Outfitters Chairman and CEO Jay Schottenstein in a release. “We faced challenges largely stemming from underperformance in certain seasonal categories and a delayed start to back-to-school. Despite this, we delivered our 18th consecutive quarter of positive consolidated comparable sales growth.”
Taking into account the first quarter, American Eagle Outfitters reported $1.92 billion in sales for the first half of fiscal 2019, an increase of 8% compared to $1.79 billion in the same period in the previous year.
Net income for the six-month period came to $105.73 million, or $0.61 per diluted share, up from $100.26 million, or $0.56 per diluted share.
The company ended the first half of the year with 939 American Eagle stores, 131 stand-alone Aerie locations and 236 licensed international stores.
Looking forward, American Eagle Outfitters expects to see a comparable sales increase in the low to mid-single digits in the third quarter, while diluted EPS is predicted to be between $0.47 and $0.49.
Copyright © 2024 FashionNetwork.com All rights reserved.