In this article Nina "Nesbitt attends the launch of the American Eagle Outfitters VIP store in Westfield London on the 13th November 2014 in London, England.David M. Benett
Clothing chains American " Eagle Outfitters and Abercrombie "& Fitch topped quarterly revenue estimates on Tuesday, as customers returning to schools and offices shopped more in physical stores after Covid-19 curbs eased.
People trapped at home during closures turned to jogging bottoms andcomfortable sweatshirts, but the reopening of schools, workplaces and public spaces following the vaccinations has prompted them to return to streetwear, including jeans and shirts.
"The start of the holiday season has been promising. Customers came out early to shop and responded well to assortments," said Fran Horowitz, CEO of Abercrombie & Fitch, in a statement.
Most clothing vendors in the US including TJ Maxx, parent TJX and Macy ' " s , ignored inventory issues over the holidays, saying they have enough cargo despite port congestion and some factory closures.
Ameri May Eagle Outfitters said inventory at cost at the end of the third quarter increasede by 32% to reach $ 740 million, as it deployed more expensive air freight to solve global supply chain problems.
The clothing chain has stepped up its logistics game, after agreeing this month to buy Quiet Logistics for $ 350 million, following its takeover of AirTerra earlier this year.
Net sales total increased 24% from a year earlier to $ 1.27 billion in the third quarter ended October. 30, beating the average analyst estimate of $ 1.23 billion, according to Refinitiv IBES.
American Eagle label revenue jumped 21% to $ 941 million, while that of the Aerie brand, which sells leggings and bras, rose 28% to $ 315 million.
Shares of American Eagle Outfitters were up 4% before marketing, the net profit gloprom having climbed 162% to $ 152.2 million. Adjusted earnings were 76 cents per share.
Abercrombie & Fitch net sales rose 10% to $ 905.2 million, beating estimates of $ 896.9 million. He also announced a new $ 500 million share repurchase plan.