American Eagle reports a drop in earnings and net sales
Digital revenue for the retailer surged 35%
Stocks impacted: American Eagle Outfitters Inc. (AEO)
American Eagle recorded a 25% rise in fourth-quarter revenue from a year earlier, while digital revenue for the retailer surged 35%. At the same time, the company reported a drop in earnings and net sales and had more than $90 million in charges related to the impairment of dozens of its stores due to the pandemic. Its profit decreased 26% to $3.5 million; earnings were 2 cents a share, down from 3 cents a share, while adjusted earnings were 39 cents a share. American Eagle also said it expects current-quarter revenue and operating income to surpass the last two years’ numbers. In its outlook, the Pittsburgh-based apparel retailer is betting on high-growth brand Aerie. For the fourth quarter ended January 30, Aerie recorded a 25% rise in revenue from a year earlier. Following the report, the company’s stocks surged over 5% in after-market trade.
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