American Eagle Outfitters reports rise in second-quarter revenue

September 3, 2021 (Last Updated September 3rd, 2021 16:07)

American Eagle Outfitters' quarterly dividend saw a 31% increase in June from $0.1375 to $0.18 to a share.

American Eagle Outfitters reports rise in second-quarter revenue
American Eagle Outfitters offers on-trend clothing, accessories and personal care products. Credit: Mike Mozart / Flickr.

US-based lifestyle, clothing and accessories retailer American Eagle Outfitters (AEO) has reported a 35% increase in its total net revenue to $1.19bn in the second quarter of the year.

During the period, the company’s Aerie sub-brand saw its revenue increase by 34% to $336m from the second quarter of last year.

Its American Eagle brand’s revenue rose by 35% to $846m against the second quarter of last year.

Driven by increasing store traffic, the company’s consolidated store revenue grew by 73% from the same period a year earlier.

AEO saw its digital revenue drop by 5% from the second quarter of last year, despite a 9% increase in total online demand.

The company also recorded an operating income of $168m in the quarter, compared to a $12m loss last year.

During the quarter, the company’s earnings per share (EPS) was $0.58 and its adjusted EPS was $0.60.

AEO board executive chairman and CEO Jay Schottenstein said: “It’s extremely gratifying to see significant growth across our business, as we delivered another quarter of record revenue and profitability.

“Results underscore the strength of our brands, outstanding product and a leading customer experience across selling channels.

“We are running our business with a laser focus on profitability through inventory and real-estate optimisation initiatives and investments to enhance our supply chain.

“Led by an expanding customer file, Aerie is achieving consistent, robust multi-year growth and very strong profit flow through.

“American Eagle posted meaningful top-and bottom-line increases, with significant unlock still ahead.

“Our Real Power. Real Growth. plan has been a guiding light for all facets of the business, positioning us to successfully navigate a dynamic macro environment.”

AEO closed the second quarter with total cash and short-term investments of $824m.

The company said it is on track to achieve an operating income of $600m this year.