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American Eagle online sales drop on easing COVID-19 curbs, shares slump

September 2, 2021

(Reuters) – American Eagle Outfitters Inc reported quarterly revenue that missed estimates on Thursday as the apparel retailer’s online business slowed following vaccinations and the easing of some COVID-19 curbs, sending its shares tumbling 12% before the bell.

The company’s second-quarter digital sales fell 5% from a year earlier, hurt by customers shopping more at brick-and-mortar stores as well as stiff competition from e-commerce giants including Inc.

Major retailers including Target Corp and Gap Inc have reported a slowdown in digital sales in their latest quarterly reports, although they remain higher compared with pre-pandemic levels.

American Eagle’s consolidated revenue from its physical stores, however, increased 73% from a year earlier in the second quarter ended July 31.

The company’s Aerie brand, which sells work-from-home favorites lingerie and lounge wear, posted a 34% rise in revenue to $336 million, while American Eagle label sales jumped 35% to $846 million.

Total net revenue increased 35% to $1.19 billion, mainly as temporary store closures hammered demand for apparel last year. However, the figure came short of Refinitiv-IBES estimates of $1.23 billion.

Excluding items, American Eagle earned 60 cents per share, beating estimates of 55 cents, as it sold more goods at full prices.

(Reporting by Praveen Paramasivam and Reshma Rockie George in Bengaluru; Editing by Ramakrishnan M.)

Source Link American Eagle online sales drop on easing COVID-19 curbs, shares slump

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