American specialty retailer AEO reports Q1 FY21 revenue of $1 bn

American Eagle Outfitters (AEO), a US-based specialty retailer offering on-trend clothing, reported 17 per cent revenue growth to $1.0 billion in its first quarter (Q1) FY21 ended on May 1, 2021, compared to the revenue of $886.3 million in the corresponding period of fiscal 2019. The company’s net income rose to $95.4 million (Q1 FY19: $40.7 million).

 

“Our first quarter results were truly outstanding and reflected excellent progress on our “Real Power. Real Growth.” value creation plan in addition to favourable external factors. Demand for Aerie’s product and powerful brand platform continued at a rapid pace, which drove significantly higher sales, margins, and profitability,” Jay Schottenstein, AEO’s executive chairman of board and chief executive officer, said in a press release.

 

Gross profit for Q1 FY21 rose to $436.2 million ($324.9 million), while selling, general and administrative expenses were $264.5 million ($230.7 million). AEO’s operating income increased to $133.4 million ($47.8 million).

 

Revenue of Aerie segment for the reported quarter rose 89 per cent to $297.5 million ($157.0 billion), whereas American Eagle segment’s revenue marginally grew to $727.7 million ($390.2 million). Digital revenue improved 57 per cent compared to the same quarter of FY19.

 

“I am extremely pleased with how our teams are executing across all functions, from our customer-facing priorities through our supply chain initiatives. We have been well positioned to meet higher demand for our products and have exceled in managing all facets of our business. We remain poised for success, and our brands are stronger than ever. I believe we are on pace to deliver our 2023 operating profit target well ahead of schedule,” Schottenstein concluded.