For the third quarter, American Eagle Outfitters, Inc. net revenue of 1.2 billion dollars was down 3 percent to the third quarter of 2021. A Reuters report said, analysts had expected revenue of 1.21 billion dollars, according to IBES data from Refinitiv.
The company said, supply chain business, quiet platforms, contributed approximately 2 percentage points to revenue growth.
The company added that brand revenue declined 5 percent, better than the company’s expectation for a high single digit decline.
“I’m pleased to deliver a third quarter that exceeded our expectations, with profit margins meaningfully improved from the first half of the year. Bold actions to rationalize inventory and reduce expenses are paying off,” commented Jay Schottenstein, AEO’s executive chairman of the board and chief executive officer.
The company said Aerie revenue of 350 million dollars rose 11 percent, reflecting a 24 percent three-year revenue CAGR. Comp sales declined 3 percent versus third quarter 2021 and was up 59 percent to third quarter 2019.
American Eagle revenue of 838 million dollars declined 11 percent reflecting a negative 1 percent three-year revenue CAGR. Comp sales declined 10 percent versus third quarter 2021 and was flat to third quarter 2019.
Consolidated store revenue declined 4 percent, while digital revenue declined 5 percent. Compared to pre-pandemic third quarter 2019, store revenue increased 3 percent and digital revenue increased 35 percent.
Gross profit was 480 million dollars compared to 565 million dollars in the third quarter of 2021 and reflected a gross margin rate of 38.7 percent compared to 44.3 percent last year and GAAP diluted EPS was 42 cents.
For the fourth quarter, the company is guiding brand revenue down in the mid single digits, and expects brand comps to be consistent with the third quarter. The company is also guiding fourth quarter gross margin in the range of 32 percent to 33 percent, at the higher end of previous guidance.