{"id":108591,"date":"2021-03-04T00:15:42","date_gmt":"2021-03-04T00:15:42","guid":{"rendered":"https:\/\/fin2me.com\/?p=108591"},"modified":"2021-03-04T00:15:42","modified_gmt":"2021-03-04T00:15:42","slug":"american-eagle-expects-best-first-quarter-sales-in-three-years-on-aerie-strength","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/american-eagle-expects-best-first-quarter-sales-in-three-years-on-aerie-strength\/","title":{"rendered":"American Eagle expects best first-quarter sales in three years on Aerie strength"},"content":{"rendered":"
(Reuters) – American Eagle Outfitters Inc said on Wednesday it expects current-quarter revenue and operating income to surpass last two years\u2019 numbers, betting on high-growth brand Aerie that sells work-from-home favorites lingerie and loungewear.<\/p> Shares of the Pittsburgh-based apparel retailer rose more than 5% in after market trade, as the company also beat Wall Street expectations for fourth-quarter revenue and profit.<\/p>\n \u201cWe\u2019re seeing really good signs in terms of where we\u2019re headed for the quarter,\u201d Chief Executive Jay Schottenstein told analysts.<\/p>\n The apparel retailer has been doubling down on investments in its Aerie brand, which includes comfortable leggings and bralettes, opening new stores and boosting its digital business.<\/p>\n American Eagle is also closing some of its underperforming stores and moving away from malls, where traffic has been thinning, and will open new stand-alone stores. The company plans to open 50 Aerie stores this year.<\/p>\n For the fourth quarter ended Jan. 30, Aerie recorded a 25% rise in revenue from a year earlier, while digital revenue for the retailer surged 35%.<\/p>\n \u201cAerie had an exceptional 2020….and (we) see significant future runway,\u201d Schottenstein said.<\/p>\n The company forecast higher spending for fiscal 2021, as it plans investments in supply chain to ensure fast delivery and online features for the convenience of shoppers.<\/p>\n It expects annual capital expenditure to be in the range of $250 million to $275 million, up from $128 million in 2020.<\/p>\n For the fourth quarter, total net revenue fell about 2% to $1.29 billion, beating analysts\u2019 average expectation of $1.28 billion, according to Refinitiv estimates.<\/p>\n Excluding one-time items, the company earned a profit of 39 cents per share, beating estimates of 36 cents.<\/p>\n Holiday-quarter earnings, however, fell about 25%, weighed by underperforming stores and a charge of $103 million due to pandemic-related expenses.<\/p>\n