American Eagle Outfitters Inc. (AEO) stock surged by 1.35% at the last trading close as well as the AEO stock price continued to rise by 5.52% in the after-hours session. Under the American Eagle and Aerie brands, American Eagle Outfitters is a leading global specialty retailer that offers high-quality, on-trend clothes, footwear, and personal care items at competitive prices. AEO’s mission is to show the world that youth’s hope has real strength.
What is happening?
On April 14, 2021, AEO revealed that its first-quarter revenue is on target to reach $1 billion, representing a mid-teens boost over pre-COVID 2019 first-quarter registered revenue. Demand has increased across the American Eagle and Aerie labels, resulting in higher full-priced sales, lower discounts, and higher margins. Management estimates operating income of about $120 million for the year, relative to $48 million in operating income and $49 million in adjusted operating income in the first quarter of 2019.
AEO’s development goals, which are based on the value creation strategy “Real Power. Real Growth,” are having a significant effect, fueling our products, platforms, and gaining new consumers. External influences including economic stimulus, renewed consumer sentiment, and pent-up demand are also helping businesses perform well.
AEO’s Executive Chairman of the Board and Chief Executive Officer, Jay Schottenstein said that given the present climate, it’s heartening to see customer confidence, high demand across platforms, and brand loyalty persist. He also added that they have never been more hopeful about their prospects than they are right now. With their eyes set on meeting their 2023 financial goals and creating superior shareholder returns, AEO remain vigilant and oriented on driving earnings growth through their Real Power. Real Growth value development strategy.
AEO is expected to release its first-quarter 2021 financial results for the fiscal quarter ended May 1, 2021, through a press release on May 26, 2021.