American Eagle Forecasts Holiday-Quarter Revenue Below Estimates

Fashion

January 21st, 2:51pm

Asharq Al-Awsat

Photo: REUTERS

Apparel retailer American Eagle Outfitters Inc on Thursday forecast a bigger-than-expected fall in its revenue for the holiday quarter, blaming weak mall traffic and store closures stemming from the COVID-19 pandemic. The company's shares fell 2.5% before the opening bell. A surge in virus cases towards the end of last year led to consumers hunkering down at home again, further bruising sales of retailers which were hoping for a strong recovery in the crucial holiday shopping season. American Eagle said fourth-quarter revenue for its flagship brand is expected to decline in the low double-digit range. However, its Aerie lingerie brand, which is not as heavily reliant on physical stores, faired better and is expected to post a revenue increase in the high-20% range. Total fourth-quarter revenue is expected to fall by low single-digits, compared with analysts' estimates of a 0.14% dip, according to IBES data from Refinitiv. The company also laid out its long-term financial outlook, ahead of its shareholder meeting later in the day, saying it targeted revenue of $5.5 billion in fiscal 2023. It had posted revenue of $4.31 billion in the last reported fiscal year.

from Asharq AL-awsat https://english.aawsat.com/home/article/2756466/american-eagle-forecasts-holiday-quarter-revenue-below-estimates