Digital demand accelerated, fueled by brand health and strong customer engagement
American Eagle Outfitters, Inc. reported EPS of ($1.54) for the 13 weeks ended May 2, 2020. This compared to $0.23 for the 13 weeks ended May 4, 2019. Jay Schottenstein, AEO’s Chairman and Chief Executive Officer commented, “In the midst of this unprecedented crisis, the strong character of our company and associates has been apparent. 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.”
American Eagle and Aerie will be well-positioned for the back-to-school and fall seasons. Total net revenue for the 13 weeks ended May 2, 2020 decreased $335 million, or 38% to $552 million compared to $886 million for the 13 weeks ended May 4, 2019. By brand, American Eagle revenue decreased 45%, following a 5% increase last year. Aerie’s revenue decreased 2%, following a 28% increase last year.
The company’s digital demand, as measured by ordered sales, increased 33%. Aerie rose 75% and AE increased 15%. First quarter digital reported revenue was up 9%, reflecting strong demand, partly offset by temporary delays in fulfillment that led to higher than normal DC backlogs. The company has since reduced backlogs from mid-April peaks.
Gross profit of $28 million compared to $325 million last year. The gross margin rate of 5.1% compared to 36.7% last year.
