Headlines

Thanks to Shrewd Moves, American Eagle Rights the Ship

Retailer charts a course reversal from last year’s shortfall

Published

3 years ago

September 2, 2021

VMSD Staff

Thanks to Shrewd Moves, American Eagle Rights the Ship — PHOTOGRAPHY: Corey Coyle

PHOTOGRAPHY: Corey Coyle

American Eagle Outfitters (Pittsburgh) turned to profit in its second quarter, reporting net income of $121.51 million compared to a loss of $13.75 million in the year prior.

The retailer attributed the reversal to reduced promotions and controlled costs that helped fuel profitability during the summer months.

However, its shares took a tumble in pre-market trading on account of lower-than-expected revenue for the quarter. American Eagle reported $1.19 billion in revenue compared to analysts’ expectations of $1.23 billion.

According to Market Insider, the company said it’s tracking toward $600 million in operating income this year, well ahead of its previous target.

Earlier this year, American Eagle said it’s planning to close between 200-250 stores during the next two to three years while charting a 50-store expansion for its Aerie lingerie brand.

VMSD Staff

Drawing on more than 125 years of history serving the retail design market, VMSD magazine provides retail professionals with the most up-to-date, innovative retail design ideas and industry news through its industry-leading magazine, website, social media channels and bulletins.

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