American Eagle Outfitters Inc. (AEO) announced its financial results for the third quarter that surpassed consensus forecast, sending its shares slightly up in the after-hours trading Wednesday. The results were mainly driven by a significant surge in digital sales during the pandemic.
The Pittsburgh, Pennsylvania-based company said that it earned $58.1 million, or 32 cents per share, for the three months ended October 31, as compared to 48 cents per share, in the comparable period last year. On an adjusted basis, earnings came in at 35 cents per share, just ahead of analysts’ average estimate of 34 cents per share.
Revenue slightly moved down to $1.032 billion, versus $1.066 billion in the year-ago quarter. Analysts surveyed by FactSet were expecting American Eagle to post revenue of $1.029 billion.
Digital sales in the quarter jumped 29 percent, mainly driven by the strong performance of the Aerie brand.
The company had to bear costs of around $7 million, excluding tax, related to safety protocols due to the pandemic. Moreover, the inventory level in the quarter decreased 13 percent on a year-over-year basis.
Speaking on the results, CEO Jay Schottenstein said in a statement “we are very pleased with early holiday trends in November and the strong response to our assortments. We have significant business ahead of us and are well-positioned and ready to serve our customers. I’m also very encouraged by our overall performance this year, especially in the midst of an unprecedented crisis. Our teams really stepped up to accelerate initiatives that will enable us to emerge from 2020 as a stronger organization with momentum and tremendous growth potential.”
American Eagle (NYSE: AEO) shares have performed well in recent months. The stock’s value has increased more than 25 percent on a year-to-date basis. At the previous closing price, the company’s market value stood at $3.071 billion.
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