American Eagle posts 3% quarterly sales decline on pandemic hit

American Eagle posts 3% quarterly sales decline on pandemic hit

Clothing is seen for sale in an American Eagle Outfitters retail store in Manhattan, New York
Clothing is seen for sale in an American Eagle Outfitters retail store in Manhattan, New York, on May 13, 2016. (Photo: REUTERS/Mike Segar)

NEW YORK: American Eagle Outfitters reported an about 3 per cent fall in third-quarter revenue on Tuesday (Nov 24), as store traffic slumped due to the COVID-19 pandemic.

The teen apparel retailer has been struggling with weak demand for its denim apparel from customers staying at home due to the health crisis and a back-to-school season hampered by students turning to online classes.

Revenue at the American Eagle label fell 11 per cent during the quarter ended Oct 31, while the Aerie brand recorded a revenue jump of 34 per cent.

Total revenue fell to US$1.03 billion, from US$1.07 billion a year earlier.

Net income attributable to the company fell to US$58.1 million, or 32 cents per share, from US$80.76 million, or 48 cents per share.

Excluding one-time items, the company earned a profit of 35 cents per share in the quarter. Analysts had projected a profit of 34 cents per share, according to IBES data from Refinitiv.

Shares of the Pittsburgh-based retailer were down about 3 per cent in aftermarket trade.

Source: Reuters

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