American Eagle Outfitters reported its earnings for the first quarter of this year.
The company said total net income for the first quarter rose by 8%, or $63 million, to a record $886 million. For comparison, for the same period last year, net income was $823 million. Gross profit increased by 7% to $325M from $304M a year ago.
And this is at a time that is marked as a disruptive moment for the clothing retail industry. American Eagle managed to achieve excellent results while competitors like The Gap, announce store closures, bankruptcies and restructurings.
Also during this time, the company opened 7 new stores and closed 5 old ones, bringing the total number of outlets to 936 (plus an additional 119 stores that sell clothes from its lingerie brand, Aerie). According to the company's leaders, they are prudent in their approach to opening new stores, carefully selecting locations and choosing only those places in the shopping center that are really suitable for this.
It was not only the growth in sales under the main brand that was able to achieve excellent results, but also the Aerie brand showed good results. The fact that the company managed to reduce the cost of production also played a significant role.
American Eagle now names its brand as the leader in the denim category. Declared intention to expand the number of sizes produced. The green image of the company, which now seeks to use more and more recycled materials, should also serve to attract new customers.
American Eagle Outfitters, Inc., better known simply as American Eagle, has been in existence since 1977 and specializes in the sale of men's and women's clothing and accessories. Initially, the brand focused on a youth audience, but eventually became popular with consumers of all ages.