American Eagle Outfitters, Inc., the US-based lifestyle and apparel retailer, has just posted its Q3 results.
The operating income for the retailer during the quarter ended 31 October 2020 was US $ 96 million – a drop from US $ 103 million in the third quarter last year.
What’s delighted the retailer is that one of its reputed labels Aerie saw a revenue jump of 34 per cent this quarter. The American Eagle (AE) brand, however, saw a fall of 11 per cent following a 2 per cent rise last year.
Meanwhile, the retailer saw its digital revenue too jump by an impressive 29 per cent. Brand wise, Aerie’s digital revenue surged by 83 per cent, while the AE brand witnessed its online revenue increase by 11 per cent.
American Eagle Outfitters, during the quarter, recorded a gross profit of US $ 415 million compared to US $ 407 million the previous year.
Notably, as a rate to revenue, gross margin increased from 38.2 per cent last year to 40.2 per cent. The rise has been attributed to higher full-priced sales, lower promotion and inventory optimisation initiatives.
The total ending inventory at cost fell by US $ 87 million to US $ 560 million.
Known for its jeans, polo shirts and boxers, amongst others, American Eagle Outfitters generates revenue of US $ 4.308 billion.