American Eagle Outfitters (AEO), a US-based specialty retailer offering on-trend clothing, has reported 3 per cent revenue decline to $1.03 billion in its third quarter (Q3) fiscal 2020 ended on October 31, compared to the revenue of $1.06 billion in the same period last year. Company net income for the quarter to $58.10 million (Q3 FY19: $80.76 million).
“The third quarter exceeded our expectations thanks to the exceptional execution, numerous accomplishments and dedication of our teams and the support of our global partners. Once again, Aerie delivered outstanding results, demonstrating the power of this incredible brand and the massive opportunity ahead. Across AE and Aerie, higher full-price selling led to strong margins, reflecting merchandise quality, inventory optimisation and our enduring brands,” Jay Schottenstein, AEO’s executive chairman of board and chief executive officer, said in a press release.
Gross profit for Q3 rose to $414.77 million (Q3 FY19: $407.06 million). Selling, general and administrative expenses were up to $273.29 million ($258.97 million). AEO’s operating income for the quarter was $95.55 million ($103.10 million).
By brand, American Eagle revenue decreased 11 per cent compared to 2 per cent increase last year. However, Aerie’s revenue jumped 34 per cent during Q3 FY20. AEO’s digital revenue increased 29 per cent, whereas Aerie’s digital revenue jumped 83 per cent and AE increased 11 per cent.
“We are very pleased with early holiday trends in November and the strong response to our assortments. We have significant business ahead of us and are well-positioned and ready to serve our customers,” Schottenstein said.