American Eagle Online Sales Plummet As In-Store Purchases Bounce | Invest News
By Praveen Paramasivam and Reshma George
(Reuters) – American Eagle Outfitters Inc’s quarterly earnings missed estimates on Thursday as its online sales were hit by the return of shoppers to physical stores to ease pandemic restrictions, pushing the chain’s shares down. clothes by 10%.
The company’s second-quarter digital sales fell 5% from a year ago, also hit by stiff competition from e-commerce from companies like Amazon.com Inc and Poshmark, although they remained higher than pre-pandemic levels.
Revenue was under pressure from the back-to-school sales season and some duty-free shopping events that were moved to the third quarter, American Eagle executives said on the earnings call.
American Eagle, which acquired logistics startup AirTerra last month, said it hopes to make digital sales account for half of its long-term revenue, up from 35% in the second quarter.
However, the owner of the Aerie brand has said he expects a strong holiday season by reserving products early and spending more on transporting merchandise to his stores, even though he is struggling with issues. industry-wide supply chain.
Total net revenue rose 35% to $ 1.19 billion in the second quarter ended July 31, missing Refinitiv-IBES estimates of $ 1.23 billion. However, it rose about 15% from pre-pandemic levels in 2019, below the median increase reported by U.S. consumer companies followed by BMO Capital Markets analysts.
(Reporting by Praveen Paramasivam and Reshma Rockie George in Bengaluru; editing by Ramakrishnan M.)
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