The US clothing group American Eagle Outfitters Inc. (AEO) made less sales and profits in the third quarter of the 2022/23 financial year than in the same period of the previous year. Nevertheless, the current results, which the company published on Tuesday, turned out better than had been expected in advance.
CEO and Chairman Jay Schottenstein expressly emphasized that the group was able to “significantly improve” its profit margins compared to the first half of the year, despite the adverse conditions. “Bold actions to rationalize inventories and cut costs have paid off,” he said in a statement.
For the most recent quarter ended Oct. 29, group revenue was $1.24 billion, down 2.6 percent from the same period last year. The Aerie label, which is aimed at a young target group, once again developed successfully, with sales increasing by 11.0 percent to USD 349.7 million. The main brand American Eagle, on the other hand, had to accept a drop in sales of 11.0 percent to 837.6 million US dollars.
Higher discounts and increased production and logistics costs had a negative impact on the result. As a result, operating income fell 43.9 percent to $117.5 million. Quarterly net income fell 46.6 percent year-on-year to $81.3 million.
In the first nine months of the current financial year, group sales were 3.49 billion US dollars and thus 0.3 percent below the corresponding level of the previous year. Net income fell 80.9 percent to $70.5 million.