Headlines

Thanks to Shrewd Moves, American Eagle Rights the Ship

Retailer charts a course reversal from last year’s shortfall

Published

3 years ago

September 2, 2021

VMSD Staff

Thanks to Shrewd Moves, American Eagle Rights the Ship — PHOTOGRAPHY: Corey Coyle

PHOTOGRAPHY: Corey Coyle

American Eagle Outfitters (Pittsburgh) turned to profit in its second quarter, reporting net income of $121.51 million compared to a loss of $13.75 million in the year prior.

The retailer attributed the reversal to reduced promotions and controlled costs that helped fuel profitability during the summer months.

However, its shares took a tumble in pre-market trading on account of lower-than-expected revenue for the quarter. American Eagle reported $1.19 billion in revenue compared to analysts’ expectations of $1.23 billion.

According to Market Insider, the company said it’s tracking toward $600 million in operating income this year, well ahead of its previous target.

Earlier this year, American Eagle said it’s planning to close between 200-250 stores during the next two to three years while charting a 50-store expansion for its Aerie lingerie brand.

VMSD Staff

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