American Eagle (AEO) up 5% as Q3 beats
15:55, 23 November 2021
American Eagle Outfitters stock rose on Tuesday as the youth-focussed clothing chain posted third-quarter earnings that beat analysts' expectations.
For the third quarter ended 30 October, net income rose to $152m (£114m) from $58m a year earlier. Net revenue rose 24% to $1.27bn from $1.03bn in the third quarter of 2020.
Adjusted earnings per share of 76 cents beat analysts' estimates of adjusted earnings of 61 cents on revenue of $1.23bn, according to figures widely available on financial news sites.
As of 10:25 EDT (UTC-5) the stock was up 5% at $28.76.
“The power of our brands, operations and talent are clearly evident and we are intensely focussed on ensuring these strengths continue to take AEO to new heights,” American Eagle chair and CEO Jay Schottenstein said in the earnings report.
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During the quarter, the company announced the acquisition of Quiet Logistics to ensure “ongoing efficiencies and procure a state-of-the-art logistics platform with meaningful growth potential.”
Consolidated store revenue increased 29% and total digital revenue increased 10%. Compared to the pre-pandemic third quarter of 2019, store revenue increased 9% and digital revenue increased 42%.
American Eagle said total consolidated ending inventory increased 32% to $740m compared with a 13% decline last year. The increase was partially driven by higher air freight due to global supply chain disruptions.