zbarney
2021-09-02
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American Eagle Slips 10% as Revenue Disappoints
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However, revenue of $1.19 billion was below analysts’ estimate of $1.22 billion.</p>\n<p>Chief Executive Officer Jay Schottenstein said the company has room to grow, and that it will hit $600 million in operating income this year.</p>\n<p>American Eagle said its capex for the financial year will be at the lower end of the $250 million to $275 million guidance.</p>\n<p>Digital sales decreased 5%, a sharp reversal considering they rose 57% in the first quarter. The company said the pandemic had last year accelerated digital sales and also created a significant backlog that shifted sales from the financial year’s first quarter to its second.</p>\n<p>The company spent more on advertising, incentives and other selling expenses as economies reopened and it tried to attract more buyers to its stores.</p>\n<p>Inventory costs rose 20% compared to a 21% decline last year. 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However, revenue of $1.19 billion was below analysts’ estimate of $1.22 billion.\nChief Executive Officer Jay Schottenstein said the company has room to grow, and that it will hit $600 million in operating income this year.\nAmerican Eagle said its capex for the financial year will be at the lower end of the $250 million to $275 million guidance.\nDigital sales decreased 5%, a sharp reversal considering they rose 57% in the first quarter. The company said the pandemic had last year accelerated digital sales and also created a significant backlog that shifted sales from the financial year’s first quarter to its second.\nThe company spent more on advertising, incentives and other selling expenses as economies reopened and it tried to attract more buyers to its stores.\nInventory costs rose 20% compared to a 21% decline last year. 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