American Eagle Q1 sales to exceed $1 billion

Executives have said it is on track to double its Aerie business to $2 billion in annual sales by 2023.

American Eagle Outfitters said Wednesday that its business grew more than expected for the fiscal first quarter as stimulus checks and pent-up demand boosted sales of jeans , fitted tops and leggings.

The company said revenue was on track to top $1 billion. Analysts had been forecasting American Eagle to earn 23 cents a share on sales of $904.1 million, according to a Refinitiv poll. Its shares rose more than 8% in after-hours trading.

American Eagle said consumer demand for both comfortable underwear and loungewear items was stronger than expected. This was due in part to external factors, including economic stimulus , new consumer optimism and customer demand.

American Eagle’s denim business is particularly strong, and consumers are also buying more tops, Chief Executive Officer Jay Schottenstein said in an interview .

"We think the environment is going to be a very good environment over the next few years, " he said. "People are going to want to spend money and go out, and they are going to get back to their previous normal levels. "

The trend is another sign that people are ready to dress up again after months of sitting at home in sweatpants or pajamas during the pandemic . Other retailers, such as Levi 's, have recently made similar comments about the popularity of denim, especially among Gen Z customers.

Last summer, in the midst of the acute health crisis, Aerie created a new athleisure brand called Offline by Aerie. The brand sells printed sports bras , jogging pants , graphic T-shirts and other active gear.

Aerie chiefs believe the company is still on track to double its Aerie business to $2 billion in annual sales by 2023.

Additionally, American Eagle said its profit margins have been improving as it sells more products at full price and relies less on promotions.

American Eagle's stock has risen more than 270% in the past 12 months. Its market value of $5.5 billion is larger than that of rival and Hollister owner Abercrombie & Fitch.

American Eagle

Q1

Sales