American Eagle Outfitters’ online sales spike as shoppers stay home
With a pandemic keeping more people indoors and browsing online, retailer American Eagle Outfitters saw digital revenue climb in its most recent quarter, with much of that coming from Aerie, its intimates brand.
Digital revenue rose 35% for the fourth quarter, with Aerie’s numbers up 75% and those of its outerwear brand, AE, up 20%, the South Side- based apparel company reported.
Online sales represented about 45% of the retailer’s total mix — up from 29% for the full year 2019, Chief Financial Officer Michael Mathias said an earnings call Wednesday.
Investors welcomed the results, sending the company’s shares up almost 9% on Thursday, to close at $27.69.
Still, COVID-19 ate into overall profits for American Eagle Outfitters, as it has for many retailers amid lockdown orders and social distancing measures.
Net income fell to $3.5 million, or 2 cents per share, in the fourth quarter, compared to $ 4.76 million, or 3 cents per share, in the same period last year. Comparable sales — a key benchmark that tallies results just for stores open at least one year — slipped 1%, reflecting mall traffic declines and stores closed due to pandemic measures.
Executives were optimistic about 2021, particularly citing strength in the Aerie brand and in its denim lines.
“I’m pleased to report that the fourth quarter and year were far better than expected at the onset of the pandemic,” Mr. Mathias said.
In July, American Eagle consolidated its active wear assortment into a new sub- brand called Offline by Aerie, as well as another brand called Unsubscribed.
Aerie, which already has almost 350 stores, plans to add another 50 locations this year, as well as 30 Offline stores, according to Chief Creative Officer Jennifer Foyle.
“We’re really excited about our growth opportunity,” Ms. Foyle said. “When we enter a new market, we just reap the benefit online as well. And we’re going to continue to use that approach as we approach every market.”
Citing the uncertainty in the market, the company declined to provide annual guidance at this time.