American Eagle Outfitters Shares Slump On Lacklustre Q2 Performance

American Eagle Outfitters Inc AEO reported second-quarter FY21 revenue growth of 35% year-on-year, to $1.194 billion, missing the analyst consensus of $1.227 billion.
Net revenue from Aerie increased 34% Y/Y, and American Eagle rose 35%.
Consolidated store revenue increased 73%, and digital revenue decreased 5% versus last year. Compared to the pre-pandemic Q2 2019 base, store revenue increased 4%, and digital revenue increased 66%.
Gross profit increased 89.4% Y/Y to $502 million and the gross margin expanded 1210 basis points Y/Y to 42.1%.
The operating margin was 14.1%, and operating income for the quarter was $168 million.
The company held $824 million in cash and equivalents as of July 31, 2021.
Total consolidated ending Inventory at cost increased 20% to $504 million compared to a 21% decline last year.
Adjusted EPS of $0.60 beat the analyst consensus of $0.53.
Price Action: AEO shares are trading lower by 9.25% at $27.28 on the last check Thursday.

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