American Eagle Outfitters reported its earnings for the first quarter of this year.
The company announced that total net income for the first quarter grew by 8%, or $ 63 million, to a record 886 million dollars. For comparison, for the same period last year, net income was $ 823 million. Gross profit rose 7% to $ 325 million from $ 304 million a year ago.
And this is in times that are marked as a disruptive moment for retail clothing. American Eagle managed to achieve excellent performance, while competitors like The Gap claim closure, bankruptcy, and restructuring.
Also, during this time, the company opened seven new stores and closed five old ones, as a result of which the total number of outlets is now 936 (plus another 119 stores that sell clothing belonging to the brand of women's underwear Aerie). As the company leaders say, they have a cautious approach to opening new stores, carefully selecting places, and choosing only proper locations for this in the shopping centers.
It was possible to achieve excellent results not only due to the growth in sales under the leading brand; the Aerie brand also showed excellent performance. Also, a significant role was played by the fact that the company managed to reduce production costs.
American Eagle now calls its brand a leader in the denim category. Declared the intention to expand the number of produced sizes. Also, attracting new customers should serve to improve the “green” image of the company, which is now seeking to use more and more recycled materials.
American Eagle Outfitters, Inc., better known as only American Eagle, has existed since 1977 and specializes in sales of men's and women's clothing, as well as accessories. Initially, the brand was guided by a youth audience, but in the end, it became popular among consumers of all ages.