American Eagle Outfitters (NYSE: AEO) on Wednesday delivered record revenue for the period ended May 4. The apparel chain reported sales of USD 886 Million compared to USD 823 Million a year earlier. Earnings came in at USD 0.23 a share, narrowly beating analysts’ call for USD 0.21 a share. Sales at AE stores open at least a year grew 4% in the first quarter. Its sister brand, Aerie, saw a comparable sales increase of 14%, following 38% growth last year. Since launching the #AerieREAL campaign in 2014, where the Company pledged to no longer retouch its models, the Aerie brand has posted double digit comps every quarter.
“American Eagle and Aerie continue to leverage strong brand equity, compelling product, and leading customer engagement across stores and digital, resulting in our 17th consecutive quarter of positive comparable sales. AE’s ongoing market share gains are led by its dominant jeans business, and Aerie’s consistent double-digit growth has been fueled by the brand’s strong appeal to both existing and new customers,” said Jay Schottenstein, AEO’s Chairman and Chief Executive Officer. This period marked the 23rd consecutive quarter of record jean sales for the AE brand, making it the number one women’s jeans brand in the U.S.
AE expects second quarter EPS to fall between USD 0.30 and USD 0.32, down from USD 0.34 the year-quarter prior.
Shares of American Eagle have lost about 11% since the beginning of the year versus competitors like Abercrombie & Fitch Co. (NYSE: ANF), down 23% and Express (NYSE: EXPR), down 46%.