From recent demand across brands, American Eagle Outfitters is exceeding expectations. The retailer’s first quarter revenue is on track to hit over $1 billion, according to their press release.
American Eagle and Aerie brands have generated strong margins, higher full-priced selling and reduced promotions. For Q1 of 2021, AEO management expects operating income of approximately $120 million, compared to first quarter 2019 operating income of $48 million and adjusted operating income of $49 million.
“In light of the current environment, it’s truly gratifying to see consumer optimism, strong demand across channels and loyalty for our brands continue. I’m amazed by the incredible momentum of Aerie, which is consistently reaching new heights and exceeding our expectations. We are seeing great progress at American Eagle, with stronger merchandise, marketing and inventory management clearly demonstrating the power and true potential of our leading brand. Looking forward, I have never been more optimistic about our future than I am today. We remain disciplined and focused on delivering profit growth through our Real Power. Real Growth value creation plan, with our sights set on achieving our 2023 financial targets and generating superior shareholder returns,” said Jay Schottenstein, AEO’s Chief Executive Officer.
Schottenstein expects to see a “Roaring 20’s” boom in shopping malls post-pandemic. The recent surge in consumer spending in March and the combination of brick-and-mortar growth for the brand, the CEO is hopeful that figures will mirror the prosperity of a century ago.
“We’re very excited, you know, about the future of the mall, and we think that when things get better and the pandemic goes away … we can be looking at the Roaring 20s,” said Schottenstein in a recent interview on Mad Money
The retailer anticipates a double-digit comparable sales growth streak, while retaining its position as a leader in denim.
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 33 countries. For more information, please visit www.aeo-inc.com.