Global apparel retailer American Eagle Outfitters announced that business is exceeding expectations with first quarter revenue on track to over $1 billion, a mid-teens increase compared to pre-COVID 2019 first quarter reported revenue.
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Demand has accelerated across the American Eagle and Aerie brands, generating strong margins, higher full-priced selling and reduced promotions. For the period, management expects operating income of approximately $120 million, compared to first quarter 2019 operating income of $48 million and adjusted operating income of $49 million.
AEO’s growth priorities centered on the “Real Power. Real Growth.” value creation plan are having a meaningful impact, fueling our brands, channels and attracting new customers. External factors, such as economic stimulus, renewed consumer optimism and pent-up demand are also positively contributing to business performance.
Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer commented, “In light of the current environment, it is truly gratifying to see consumer optimism, strong demand across channels and loyalty for our brands continue. I am amazed by the incredible momentum of Aerie, which is consistently reaching new heights and exceeding our expectations.”
“We are seeing great progress at American Eagle, with stronger merchandise, marketing and inventory management clearly demonstrating the power and true potential of our leading brand. Looking forward, I have never been more optimistic about our future than I am today. We remain disciplined and focused on delivering profit growth through our Real Power. Real Growth value creation plan, with our sights set on achieving our 2023 financial targets and generating superior shareholder returns,” continued Schottenstein.