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After American Eagle Outfitters announced the expected increase in revenue, its shares climbed over 8% in after-hours trading and are up in the pre-market as well.
The clothing and accessories retailer American Eagle Outfitters Inc (NYSE: AEO) is on course to top $1 billion in its fiscal first quarter (Q1) and sees its stock growing. The clothing company announced the profitable prediction on the 14th of April. According to American Eagle, the business is thriving better than expected due to increasing demand for the company’s products.
Before now, a poll by Refinitiv stated that analysts had predicted American Eagle Outfitters to pull in 23 cents a share on sales of $904.1 million. The company reported that its profit margin has been improving as a result of the rise in sales of its jeans, trousers, and tops. Similar to its rivals like Levi Strauss Co (NYSE: LEVI), American Eagle Outfitters’ strong sales record is tied to customers spending their stimulus checks in buying clothes and accessories.
During a phone interview with CNBC, the chairman and CEO of American Eagle Outfitters Jay Schottenstein said that the company’s Denim business has been particularly strong, and there has been an increase in the sales of tops. Speaking further, he added:
“There’s a lot of money out there. We think the environment for the next few years, it’s going to be a very good environment… people will want to spend [and] people are going to want to go out and they’re going to want to get back to what was normal before.”
American Eagle Outfitters Sees Increase as Shoppers Stock Up More Clothing
The increase in sales shows that people are ready to return to their lifestyle before the unprecedented global health crisis. As clothing companies see more demand for their products, it shows that people are gradually leaving their houses and properly dressing up. Levi Strauss also said it has seen increased sales, especially among Gen Z customers.
American Eagle-owned intimate apparel and lifestyle retailer Aerie has also been exceeding the company’s expectations. Aerie global president Jennifer Foyle said that the company will double its business to $2 billion annual sales by 2023.
After American Eagle announced the expected increase in revenue, its shares climbed over 8% in after-hours trading. Currently, at a premarket trading price of $35.09, American Eagle Outfitters (AEO) stock is up 6.40% over its previous close of $32.98. The company stands at a market value of $5.42 billion.
MarketWatch data shows that the clothing company has constantly been increasing over the past year. The company has jumped more than 272% in the last year. AEO stock has also advanced by 64.32% in its year-to-date record. In addition, American Eagle Outfitters surged 42.16% in the last three months. Also, the company gained nearly 11% over the past month. In the last five days, the company has increased by 4.73%.
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