American Eagle Outfitters posts Q2 loss, revenues drop 15 percent
Prachi Singh| Wednesday, 09 September 2020
American Eagle Outfitters, Inc. has reported EPS of negative 8 cents for the 13 weeks ended August 1, 2020 compared to 38 cents for the 13 weeks ended August 3, 2019, and adjusted EPS of negative 3 cents compared to adjusted EPS of 39 cents last year. Total net revenue for the quarter decreased 157 million dollars or 15 percent to 884 million dollars, which the company said, largely reflected store closures during the second quarter and revenue in the year-ago period also included 40 million dollars from Japanese license royalties.
Commenting on the second quarter performance, Jay Schottenstein, AEO’s Chairman and Chief Executive Officer said in a statement: “In the midst of an unprecedented crisis, we delivered a significant improvement from the first quarter throughout our business. Aerie was simply outstanding, fuelled by strong demand, with revenue rising 32 percent and record margins. Across brands, digital sales accelerated and we successfully reopened stores during the quarter.”
Aerie sees rise in demand, grows by 32 percent By brand, American Eagle revenue decreased 26 percent, following a 1 percent decline last year, while Aerie’s revenue increased 32 percent, following a 22 percent increase last year.
The company’s second quarter digital demand, as measured by ordered sales, increased 48 percent. Aerie digital demand rose 113 percent and AE increased 21 percent. AEO’s digital reported revenue increased 74 percent, while Aerie digital revenue rose 142 percent and AE increased 47 percent.
The company’s gross profit reached 265 million dollars compared to 383 million dollars last year. Operating loss for the quarter was 12 million dollars compared to income of 82 million dollars last year.