American Eagle sees Q4 revenue decline, looks ahead to 2023 with new growth strategy
American Eagle Outfitters Inc.
AEO,
said early Thursday that it expects fourth-quarter revenue to drop in the low-single digits, with the Aerie brand up in the high-20% range but the namesake brand down in the low-double digits. The apparel and accessories retailer attributed the declines to a pandemic-related drop in store hours and traffic. The FactSet consensus is for revenue of $1.31 billion, suggesting a 0.1% decline year-over-year. American Eagle stock fell 3% in premarket trading. That business update and the unveiling of American Eagle’s long-term growth strategy were announced ahead of the company’s investor meeting, taking place on Thursday. The plan, called “Real Power. Real Growth,” aims to double Aerie brand revenue to $2 billion by 2023, jumpstart the namesake brand’s profit and sets a goal for a 15% compound annual growth rate (CAGR) through 2023. American Eagle shares have rallied nearly 58% over the past year while the S&P 500 index
SPX,
is up 16% for the period.
