American Eagle Outfitters Inc. (AEO), a clothing company based in the United States, has released mixed results for the third quarter of the fiscal year 2024–2025 and lowered its sales projection.
Group sales came to US $ 1.29 billion in the 13 weeks before 2nd November. Compared to the same quarter last year, this indicates a 1 per cent decline. However, the corporation said that revenues increased by 3 per cent after accounting for calendar changes. American Eagle, the main brand, saw a 3 per cent decline in sales, reaching US $ 831.9 million. In contrast, the lingerie company Aerie saw a 4 per cent gain, reaching US $ 410.4 million.
Significant price reductions, write-downs, and restructuring expenses were among the reasons why operating profit dropped by 15 per cent to US $ 106.1 million despite effective cost-cutting measures. At US $ 80.0 million, net profit dropped 17 per cent.
Given the most recent data and the ambiguities surrounding demand during the Christmas season, the management was obliged to reduce its sales projection for the current fiscal year. Previously anticipating a two to three percent increase in sales, the group now only anticipates a one percent increase.
