American Eagle sales beat on strong demand for jeans, Aerie lingerie
today Jun 5, 2019
American Eagle Outfitters Inc beat Wall Street estimates for quarterly same-store sales on Wednesday, helped by growing demand for its jeans and Aerie line of lingerie, sending its shares up more than 7% in trading before the bell.
Aerie’s focus on comfortable innerwear for women of all body types has strongly resonated with young shoppers who have struggled to find similar products at rival brands, including Victoria Secret’s Pink.
A resurgence in 90s fashion trends in the United States has also bolstered sales of its American Eagle brand, whose stretchy and distressed jeans are a big hit with the college crowd.
The company’s same-store sales rose 6% in the first quarter ended May 4, beating analysts’ average estimate of a 3.13% increase, according to IBES data from Refinitiv.
Same-store sales at Aerie rose 14% in the quarter.
Net income rose to $40.8 million, or 23 cents per share, from $39.9 million, or 22 cents per share, a year earlier.
Total net revenue rose 7.7% to $886.3 million, beating analysts’ estimates of $855.6 million.
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