EconomyMarkets

American Eagle online sales fall as in-store shopping spree rebounds By Reuters

© Reuters. FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, U.S., June 1, 2021. REUTERS/Erin Scott

By Praveen Paramasivam and Reshma George

(Reuters) – American Eagle Outfitters (NYSE:) 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 (NASDAQ:) 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.

However, the owner of Aerie brand 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.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button