(Reuters) – American Eagle Outfitters Inc beat quarterly revenue estimates on Tuesday, as customers returning to schools and offices shopped more at its physical stores following the easing of COVID-19 curbs.
People stuck at home during lockdowns turned to comfortable joggers and sweatshirts, but the reopening of schools, workplaces and public spaces following vaccinations have prompted them to splurge again on streetwear, including jeans and shirts.
Most U.S. apparel sellers, including T.J. Maxx-parent TJX Cos Inc and Macy’s Inc, have shrugged off holiday inventory concerns, saying they have ample goods despite port congestion and some factory closures.
American Eagle Outfitters said inventory at cost at the end of the third quarter increased 32% to $740 million, as it deployed pricier air freight to navigate global supply chain issues.
The apparel chain has been beefing up its logistics game, after it agreed this month to buy Quiet Logistics for $350 million, following its takeover of AirTerra earlier this year.
Total net revenue increased 24% from a year earlier to $1.27 billion in the third quarter ended Oct. 30, beating analysts’ average estimate of $1.23 billion, according to Refinitiv IBES.
American Eagle label revenue jumped 21% to $941 million, while that of Aerie brand, which sells leggings and bras, rose 28% to $315 million.
Overall net income soared 162% to $152.2 million, while adjusted profit was 76 cents per share.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Ramakrishnan M.)
