American Eagle says it’s seeing ‘extra than our fair share of pent-up demand’ as stores reopen, shares soar

Matthew Mitchell, heart, talks with clients as Sierra Phillips adjusts a denim show on the American Eagle/Aerie retailer at Easton Town Center in Columbus, Ohio on May 15, 2020.

Andrew Spear | The Washington Post | Getty Images

American Eagle Outfitters thinks it’s the finest retailer within the mall. And its inventory is hovering. 

“We think we are getting more than our fair share of pent-up demand,” American Eagle Chief Financial Officer Mike Mathias mentioned Wednesday morning throughout an earnings convention name with analysts, explaining how gross sales are bouncing again faster than anticipated amid the Covid-19 disaster. 

“And there was a lot of stimulus,” he went on. “We had competitors close … but clearly we’re the strongest store in the mall, and our customers are continuing to come to us.” 

American Eagle shares had been initially falling after the earnings outcomes had been launched, however later shot up extra than 15% in early buying and selling. 

Management defined that as stores reopen through the coronavirus pandemic, gross sales are averaging a powerful metric of roughly 95% of their regular ranges. American Eagle mentioned it has opened 556 areas so far. It has almost 1,100 in whole. 

The sturdy restoration as American Eagle’s flagship attire retailers and Aerie lingerie areas reopen in malls throughout the nation aligns with what rival Abercrombie & Fitch revealed final week it was seeing, with gross sales likewise bouncing again quicker than anticipated

But others within the mall will not be faring as strongly. Macy’s, for instance, has mentioned its gross sales are down about 50% in its just lately reopened division stores. And chains discovered within the mall together with Neiman Marcus, J.C. Penney and J.Crew have filed for Chapter 11 chapter safety through the disaster. 

Teen customers, nonetheless, seem able to spend at American Eagle and Abercrombie. They’re looking for summer time garb and shortly can be stocking up on back-to-school necessities. 

“We work all year to make sure that we’re gonna have the best jeans every back-to-school,” American Eagle Chief Executive Jay Schottenstein mentioned Wednesday. 

American Eagle and Abercrombie additionally each referred to as out social media platform TikTok as a method they’re reaching extra clients, particularly tweens and teenagers. American Eagle mentioned it collaborated just lately with TikTok’s greatest star Charli D’Amelio for a video on its Aerie swim assortment, receiving virtually 2 billion impressions. 

“Customers remain loyal and the affinity for the brand will likely be cemented by its authentic marketing focused on real people – something that has more resonance in the post-pandemic world,” GlobalData Retail Managing Director Neil Saunders mentioned about American Eagle’s outcomes

American Eagle shares are down about 19% this 12 months. 

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