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American Eagle beats revenue estimates on robust demand

imageStock Markets15 minutes ago (May 26, 2021 04:36PM ET)

(C) Reuters. FILE PHOTO: Clothing is seen for sale in an American Eagle Outfitters retail store in Manhattan, New York, U.S., May 13, 2016. REUTERS/Mike Segar

(Reuters) -Apparel retailer American Eagle Outfitters (NYSE:AEO) Inc beat first-quarter revenue estimates on Wednesday, benefiting from easing restrictions and stimulus checks that boosted spending on clothes as people look forward to dressing up for outings.

The $1,400 stimulus checks that Americans’ received in March has boosted consumer spending, and sales across apparel retailers, including American Eagle, which recorded an increase in sales for the first time since the onset of the pandemic.

Aerie, the company’s most popular brand, recorded a rise of 89% in first-quarter revenue compared to 2019 levels, while revenue at the American Eagle label rose marginally.

Net income attributable to the company was $95.5 million, or 46 cents per share in the quarter ended May 1, compared with a loss of $257.2 million, or $1.54 per share, a year earlier.

Total net revenue jumped 87.5% to $1.03 billion. Analysts were expecting revenue of $1.02 billion, according to IBES data from Refinitiv.

American Eagle beats revenue estimates on robust demand

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