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American Eagle Outfitters swings to Q1 loss

By Prachi Singh

Jun 3, 2020

Report

American Eagle Outfitters, Inc. reported loss per share of 1.54 dollars for the 13 weeks ended May 2, 2020 compared to earnings per share of 23 cents for the same period ended May 4, 2019. Adjusted loss per share was 84 cents compared to adjusted EPS of 24 cents last year. Total net revenue for the first quarter, the company said, decreased 335 million dollars or 38 percent to 552 million dollars.

Commenting on the first quarter update, Jay Schottenstein, AEO’s Chairman and Chief Executive Officer, said in a statement: “Store closures and aggressive inventory liquidation had a significant impact on our first quarter financials. Yet customer engagement remained high and digital demand accelerated, well-exceeding our expectations. Aerie’s performance was truly exceptional despite store closures. I’m very pleased to see stores re-opening strong. Recent liquidity measures will protect our financial strength and enable us to continue to invest in our business, further solidifying our competitive position.”

By brand, the company added, American Eagle revenue decreased 45 percent, following a 5 percent increase last year, while Aerie’s revenue decreased 2 percent, following a 28 percent increase last year. The company’s digital demand, as measured by ordered sales, increased 33 percent. Aerie rose 75 percent and AE increased 15 percent. First quarter digital reported revenue was up 9percent, reflecting strong demand.

Gross profit reached 28 million dollars compared to 325 million dollars last year and the gross margin rate was 5.1 percent compared to 36.7 percent last year. Operating loss was 358 million dollars compared to income of 48 million dollars last year, while adjusted operating loss was 203 million dollars compared to adjusted operating income of 49 million dollars last year.

Picture:Facebook/American Eagle