×
89 422
Fashion Jobs
AESOP
Part Time Retail Consultant | Seaport
Permanent · Boston
KOHLS
Distribution Center Operations Manager
Permanent · Patterson
PAUL SMITH
Sales Supervisor- Wooster Street
Permanent · NEW YORK
URBN
Urbn Urban Outfitters Inc. Inventory Control/Quality Audit
Permanent · RENO
H&M
Senior Director, Sales Component Engineering
Permanent · ATLANTA
H&M
Part Time Cleaning Technician
Permanent · NEW YORK
PRIMARK
Visual Merchandising Manager- Downtown Crossing
Permanent · BOSTON
PRIMARK
Visual Merchandising Manager-Concord Mills
Permanent · CONCORD
PRIMARK
Visual Merchandising Manager - Crossgates
Permanent · ALBANY
PRIMARK
Visual Merchandise Manager- Jersey Gardens
Permanent · ELIZABETH
PRIMARK
Visual Merchandise Manager- Green Acres
Permanent · NEW YORK
PRIMARK
Visual Merchandise Manager- Walden
Permanent · BUFFALO
PRIMARK
Visual Merchandise Manager- Woodfield Mall- New Store
Permanent · SCHAUMBURG
SACKS
Vendor Compliance Analyst
Permanent · WILKES-BARRE
SACK OFF 5TH
Asset Protection Investigator
Permanent · BOCA RATON
UNDER ARMOUR
Stock Lead, ft
Permanent · WOODSTOCK
UNDER ARMOUR
sr. Manager Inventory Control And Quality Assurance
Permanent · SPARROWS POINT
BLOOMINGDALE'S
Asset Protection Outlet Supervisor, Full Time - Mission Valley
Permanent · SAN DIEGO
BLOOMINGDALE'S
Asset Protection Visual Security Officer, Part Time - Palm Beach Garden
Permanent · Palm Beach Gardens
BLOOMINGDALE'S
Asset Protection Outlet Detective, Full Time - Upper West Side
Permanent · New York
MACY'S
Asset Protection Security Guard, Mall of Georgia - Part Time
Permanent · Buford
MACY'S
Brand Sales Specialist - Polo, Miami International - Full Time
Permanent · Miami
By
Reuters
Published
Sep 8, 2022
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

American Eagle earnings disappoint as inflation hits apparel demand

By
Reuters
Published
Sep 8, 2022

American Eagle Outfitters Inc on Wednesday missed second-quarter profit estimates and said it would pause quarterly dividend as it fortifies its finances against a hit from inflation, sending its shares down over 14% aftermarket.


Archivo


​The apparel maker would also freeze hiring, cut non-critical expenses and lower capital spending, Chief Executive Officer Jay Schottenstein said in an earnings call, as the company looks to minimize damages from rising costs and slowing demand.

With the United States on the edge of a recession, and prices of food and everyday essentials exceptionally high, consumers are limiting expenditure on discretionary items like apparel, hurting major U.S. retailers including Walmart Inc, Target Corp, and Kohl's.

American Eagle's gross margins for the reported quarter declined due to higher freight costs, steeper discounts and increased promotional activity to get rid of excess spring and summer goods.

The company's total ending inventory at cost rose to $687 million compared to $504 million a year earlier.

Schottenstein said the company entered third quarter with better inventory levels with fresh back-to-school and fall merchandise.

The company's Aerie division, a pandemic beneficiary that makes activewear, swimsuits and bralettes, recorded an 11% jump in revenue in the second quarter ended July 30, while namesake division American Eagle posted an 8% decline.

Net revenue stood at $1.20 billion, in-line with analysts' expectation, according to IBES data from Refinitiv.

Excluding items, American Eagle earned 4 cents per share, largely below estimates of 13 cents.
The company had paid shareholders a dividend of 18 cents in the previous quarter.

© Thomson Reuters 2022 All rights reserved.