After a mixed quarter American Eagle Outfitters lowers sales forecast
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In the 13 weeks before November 2, group sales reached 1.29 billion US dollars (1.22 billion euros). This represents a one percent drop compared to the same quarter last year. Adjusted for calendar effects, however, revenues rose by three percent, the company announced. Sales of the core brand American Eagle fell by three percent to 831.9 million US dollars. The lingerie label Aerie, on the other hand, achieved an increase of four percent to 410.4 million US dollars.
Despite successful cost-cutting measures, operating profit fell by 15 percent to 106.1 million US dollars, not least due to extensive price reductions, write-downs and restructuring costs. Net profit fell by 17 percent to 80.0 million US dollars (75.8 million euros).
The management felt compelled to lower its sales forecast for the current financial year due to the latest figures and uncertainties regarding demand during the Christmas season. The group now only expects sales growth of one percent, after previously expecting an increase of two to three percent.
- American Eagle Outfitters reported mixed Q3 results, with overall sales slightly down.
- Aerie brand sales grew while American Eagle brand sales declined; profitability decreased due to price reductions and costs.
- Company lowered its full-year sales forecast due to weaker-than-expected performance and uncertain holiday demand.
This article originally appeared on FashionUnited.DE, translated and edited to English.
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