American Eagle shares jump after sales beat expectations

/ / News

American Eagle Outfitters Inc. shares jumped 2.7% in Wednesday premarket trading after the clothing and accessories retailer reported narrower-than-expected second-quarter losses and sales that beat expectations. Net losses totaled $13.8 million, or a loss of 8 cents per share, after net income of $65.0 million, or 38 cents per share, last year. Adjusted losses of 3 cents per share exclude COVID-19 expenses and restructuring charges. Revenue of $883.5 million was down from $1.04 billion last year. The FactSet consensus was for a loss of 18 cents per share and sales of $823.0 million. American Eagle’s underwear and loungewear brand Aerie reported sales growth 32% and a record margin increase. Aerie digital sales more than doubled, up 113%, and overall digital demand grew 48%. Inventory fell 21% to $421 million. American Eagle has deferred its first-quarter dividend, which will be payable on April 23, 2021 to stockholders of record at the close of business on April 9, 2021. American Eagle also announced on Wednesday that it has promoted Jennifer Foyle to chief creative officer of AEO Inc., adding to her responsibilities as Aerie’s global brand president. American Eagle stock is down 10.2% for the year to date while the S&P 500 index has gained 3.1% for the period.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.