American Eagle Outfitters posts 24 percent revenue growth

American Eagle Outfitters, Inc. (AEO) said total net revenue increased 242 million dollars or 24 percent to 1.27 billion dollars for the third quarter with Aerie revenue of 315 million dollars, up 28 percent and American Eagle revenue of 941 million dollars, up 21 percent versus third quarter 2020.

Consolidated store revenue increased 29 percent and total digital revenue increased 10 percent. Compared to the pre-pandemic third quarter 2019 base, store revenue increased 9 percent and digital revenue increased 42 percent.

“As strong demand for our merchandise and brands continues, I’m very pleased to report another quarter of record revenue and profit. The work on our ‘Real Power. Real Growth.’ value creation plan is driving meaningful improvements to our profitability through real estate and inventory optimization; omni-channel and customer focus; and our supply chain initiatives,” said Jay Schottenstein, AEO’s executive chairman and chief executive officer in a statement.

The company said, gross profit of 565 million dollars rose 36 percent, while gross margin of 44.3 percent expanded 410 basis points from 40.2 percent in the third quarter of 2020 and reflected the highest rate since 2007.

Operating income was 210 million dollars compared to 96 million dollars in third quarter 2020 or 103 million dollars on an adjusted basis and operating margin of 16.5 percent reflected the highest rate since 2007.

The company reported EPS of 74 cents and adjusted EPS of 76 cents during the third quarter.