American Eagle forecasts higher spending for fiscal 2021

REUTERS: American Eagle Outfitters forecast higher spending for fiscal 2021 on Wednesday, as the apparel retailer plans supply chain investments to ensure fast delivery and easy shopping for consumers making online purchases.

The company said it expects annual capital expenditure to be in the range of US$250 million to US$275 million, up from US$128 million in 2020.

Aerie, the company's most popular brand, recorded a revenue rise of 25 per cent in the fourth quarter ended Jan 30 from a year earlier, while revenue at the American Eagle label fell 9 per cent.

Digital revenue surged 35 per cent surged, helped by features such as same-day delivery and curbside pickup.

Net income came in at US$3.5 million, or 2 cents per share, compared with a profit of US$4.76 million, or 3 cents per share.

Total net revenue fell about 2per cent to US$1.29 billion compared with analysts' expectations of US$1.28 billion.

The company incurred US$103 million in pre-tax impairment and COVID-19 related charges in the quarter.