American Eagle Outfitters Inc. reported smaller-than-expected second-quarter losses and sales that beat expectations, boosted by intimates brand Aerie.
On the company’s earnings call with analysts, CFO Mike Mathias said the company plans to close 40 to 50 stores for the year. The retailer operated 1,098 stores at the end of the quarter.
American Eagle Outfitters’ total revenue fell 15% to $883.5 million in the quarter ended Aug. 1, reflecting the impact of closed stores due to the pandemic.
Analysts had expected sales of $823.0 million. By brand, American Eagle’s revenue decreased 26%, following a 1% decline last year. Aerie’s revenue increased 32%, following a 22% increase last year.
Total digital revenue increased 74%. By brand, digital revenue rose 142% at Aerie and 47% at American Eagle.
The company’s online strength in the quarter was “fueled by new customer acquisition, robust traffic and strong conversions.”