American Eagle’s quarterly revenue misses estimates

By Thomson Reuters May 29, 2024 | 3:23 PM

(Reuters) -American Eagle Outfitters on Wednesday missed Wall Street estimates for quarterly revenue as sticky inflation hurt consumer demand for its apparel and accessories often sold at full price.

Shares of the company fell 6% in trading after the bell.

Despite a 240 basis points jump in quarterly gross margin from higher full price selling of its denims and active wear apparel, the company is facing choppy demand as shoppers stretch their wallets to accommodate higher cost of living.

The retailer logged a 4% rise in store revenue during the quarter, while total digital revenue jumped 12%.

American Eagle said it continues to expect fiscal 2024 operating income in the range of $445 to $465 million and revenue to rise 2% to 4% from last year.

The company’s net revenue for the quarter ended May 4 rose 6% to $1.14 billion, compared with analysts’ average estimate of a 6.4% rise to $1.15 billion, according to LSEG data.

(Reporting by Savyata Mishra in Bengaluru; Editing by Maju Samuel)