American Eagle shares fall as e-commerce sales slow

According to foreign media reports, according to the second quarter financial report of American Eagle, an American clothing brand, its net income increased from 8 cents per share to $121.5 million, and its earnings per share rose to 58 cents . Excluding its one-time items, its earnings per share reached 60 cents, higher than the 55 cents previously expected by analysts.

Revenue increased 35% from $883.5 million to $1.19 billion in the same period last year, lower than analysts' forecast of $1.23 billion. Digital sales fell 5% from 2020. Due to the epidemic, many consumers chose to shop online instead of going to stores. American Eagle said this has enabled its digital revenue to grow 66% in two years.

Other retailers including Gap and Macy's have said in recent months that their online sales growth has begun to taper off as consumers return to offline stores , but many retailers are still seeing higher e-commerce earnings than before the pandemic.

American Eagle did not disclose its outlook for the next quarter or the full year. However, it said it is still on track to achieve its previous three-year target. American Eagle said it will hold an investor day event in January next year. It is currently the back-to-school season, and manufacturing and transportation restrictions have been hanging over the entire industry, which has also caused the company to face transportation delays, inventory backlogs and empty shelves in some stores.

American Eagle's vice president said they know where the problems are, but the products the company has invested in will perform differently than others in the second half of the year. Schottenstein said American Eagle has been investing in its supply chain for years to make it more flexible and less dependent on overseas factories. The company said it has also reserved additional air freight to ensure it can send goods to stores with inventory during the holidays.

According to relevant data, American Eagle's revenue is expected to reach US$5.5 billion by 2023. As of the close of trading on September 1, American Eagle's stock price has risen nearly 50% this year. The company's market value reached US$5.04 billion.

American Eagle

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