American Eagle Outfitters (AEO) has announced preliminary quarterly results. Only the last week of May will see the release of the report.
The report suggests the company will achieve revenue in the current quarter exceeding $ 1 billion, which is almost 20% higher than the same quarter last year when the pandemic had a minimal effect. Meanwhile, the company itself notes that its Aerie brand is revolutionizing the way it does business. The performance of the company is also backed up by successful marketing and inventory management.
The retailer anticipates that its operating income will rise to approximately $ 120 million in the quarter. This profit boost is expected to be driven by strong consumer demand and increased margins.
The pandemic closed a large percentage of American Eagle Outfitters stores, harming sales for the company. However, an eventual relaxation of quarantine measures allowed the firm to resume normal sales gradually. Further, American Eagle Outfitters is expecting solid growth even during the off-peak season.
More than 930 American Eagle Outfitters and over 330 Aerie stores are owned by American Eagle Outfitters today. Its popularity contributes to American Eagle Outfitters’ rapid recovery among teenagers, as the company placed second in the Piper Jaffray survey in 2020 behind Nike. E-commerce sales demonstrated double-digit growth in 2020, thanks to this audience. However, it is noteworthy that internet sales were growing in advance of the pandemic. Closed stationery store closures have only accelerated a trend that has existed for some time.
Therefore, American Eagle Outfitters was able to retain a loyal audience despite the pandemic. This valuable resource has helped to provide sales to the company during this challenging time and will continue to contribute to the company’s success after returning to normal activity.
Shares of AEO closed the last session at $34.48, increasing 0.44% or $0.15. The company’s shares fluctuated between $34.05 and $34.835 throughout the day. More shares were exchanged on Wednesday (4.49 million shares) than the daily volume at the end of the prior 50-day period of 4.0 million shares. Its stock has grown 289.16% in the past 12 months, and its stock has moved 5.83% over the past week. This stock has gained 130.02% over the past six months and 48.62% over the last three months. This is the stock’s best return since this time last year.