American Eagle (AEO) Q2 2021 profits

A shopkeeper walks past an American Eagle store in the mall.

Tim Boyle | Getty Images News | Getty Images

Shares of American Eagle fell Thursday after the company reported second-quarter tax revenues close to analysts ’estimates, as its e-commerce activity slowed compared to the previous year.

Its shares fell 9% in premarket trading on the news.

The American Eagle’s earnings, however, have come above expectations. The company, which also owns the Aerie lingerie brand, said reduced promotions and controlled costs have helped fuel its profitability during the summer months.

Here’s how American Eagle performed for the quarter ended July 31 compared to what Wall Street anticipated, using Refinitiv estimates:

  • Earnite per part: 60 cents adjusted vs. 55 cents provided
  • Revenue: $ 1.19 billion vs. $ 1.23 billion expected

American Eagle’s net income went to $ 121.5 million, or 58 cents per share, from a loss of $ 13.8 million, or 8 cents per share, a year earlier. Excluding single items, it earned 60 cents per share, down from the 55 cents analysts were looking for.

Revenue grew 35% to $ 1.19 billion from $ 883.5 in the period last year. That came in short of analysts ’forecast of $ 1.23 billion.

Revenues of $ 336 million were up 34% from a year earlier. American Eagle’s revenues increased 35% to $ 846 million over the same period.

Digital sales are down 5% from 2020 levels. Last summer, many consumers chose to shop online instead of visiting stores because of the Covid pandemic. Digital revenues have jumped 66% on a two-year basis, American Eagle said.

The company does not offer a prospect in its earnings press release.

At the end of Wednesday’s market, American Eagle shares are up nearly 50% year-to-date. The company’s market capitalization is $ 5.04 billion.

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