American Eagle Outfitters. Shutterstock.
American Eagle Outfitters Inc. predicted first-quarter sales of more than $ 1 billion on Wednesday, as strong demand helped the apparel retailer sell more products from its eponymous and Aerie labels at full price.
Shares of the Pittsburgh, Pennsylvania-based company were up about 5 percent in expanded trading as the forecast came above market estimates of $ 904.1 million, according to Refinitiv’s IBES data.
Like its rivals Levi Strauss Co. and Abercrombie & Fitch Co., American Eagle posted stronger sales as more customers spent their incentive checks on the company’s jeans, pants and tops.
“In light of the current environment, it is really gratifying to see consumer optimism and strong demand for the channels,” said Jay Schottenstein, CEO of American Eagle in a statement.
Aerie, which sells home-use favorites including lingerie and loungewear, has exceeded the company’s expectations, Schottenstein added.
American Eagle also forecasts operating income of approximately $ 120 million for the first quarter, compared to $ 48 million in 2019.
By Praveen Paramasivam; Editing by Devika Syamnath