Saturday, June 3, 2023

American Eagle grew its sales by 2%, but its profit decreased by 52% in the first quarter

American Eagle Outfitters keeps stumbling. The US fashion distribution group closed the first quarter of the year (the period ending April 29) with a slight increase in its sales, but its profit fell once again.

The company has registered a turnover of $1,081 million, which is 2% higher than the same period of 2022. The figure has been boosted by sales at the group’s own physical establishments, which grew by 5% during the period. However, billing through digital channels has been reduced by 4%.

The company’s profit was $18 million, down 52% compared to the same period last year, when the company earned $32 million. “Given the challenges posed by the macroeconomic context, our clear focus is on cost savings, inventory maintenance and business efficiency; We expect an even more profitable growth for the future”, the company’s CEO Jay Schottenstein explained in a statement.

American Eagle Outfitters grew its invoicing 5% in stores, but reduced sales in digital channels 4%

The US conglomerate reported a 12% increase in sales of its Aerie brand, up to $359 million. However, in its namesake brand, the company decreased its turnover by 2% with revenue of $671 million, remaining the group’s largest brand by turnover.

The company’s inventory has decreased by 8% over the period to $625 million, compared to $682 million for the US company in the same period in 2022.

For the second quarter, the company estimates that its sales will be down compared to the same period last year, with an operating profit of between $25 million and $35 million. At the end of 2023, Fashion Distribution Group is also expected to lower its billings and report operating profit of between $250 million and $270 million.

American Eagle made its debut in 1977 by brothers Jerry and Mark Silverman. Currently, the company has stores in the United States, Mexico, Canada, Hong Kong and Japan, as well as operating through online channels in over 80 countries. In addition, the company operates through a multi-brand channel in more than 200 points of sale across the globe.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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