American Eagle Outfitters, Inc. recently posted their second quarter financial results. The retailer’s numbers show improvements throughout the quarter from an evident increase in demand across e-commerce and physical stores. AEO’s brand, Aerie, also showed exceptional growth with revenue up 32% and record-beating margins.
AEO’s second quarter financials showcase a strengthened position for the brand that include:
- Improved demand and operating discipline drove $173 million in positive operating cash flow, ending with $899 million in cash
- Ending inventory declined 21%; AEO is well positioned for the second half
- Gross profit of $265 million compared to $383 million last year
“In the midst of an unprecedented crisis, we delivered a significant improvement from the first quarter throughout our business – a true testament to the agility, talent and commitment of our team. Aerie was simply outstanding, fueled by strong demand, with revenue rising 32% and record margins, demonstrating the power of the brand and signaling the vast opportunity ahead. Across brands, digital sales accelerated and we successfully reopened stores during the quarter,” commented Jay Schottenstein, AEO’s Chief Executive Officer.
AEO remains focused on controlling their business model with careful thought and execution during these unprecedented times. They are also preparing for a brighter future ahead, where they can take their strong financial standings and accelerate their retail brands one step further.
“Throughout this event, we operated with strong disciplines, reduced expenses, cut inventories and carefully managed liquidity. We controlled what we could, and generated positive free cash flow, strengthening our balance sheet. Inventories are in good shape and I believe we are very well-positioned for the second half of the year. We will remain focused on managing through the near term and preparing for a new future as we accelerate strategies to transform our business and emerge with strength,” added Schottenstein.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there’s REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico, and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 200 international locations operated by licensees in 25 countries. For more information, please visit www.aeo-inc.com.