The company has upped its guidance, revenue and operating income goals as it begins the year with plenty of momentum.
The apparel retailer raised its 2023 financial targets, saying it’s on track to reach its fiscal 2023 operating income and margin targets two years earlier than scheduled. Citing strong holiday sales, American Eagle expects record fourth-quarter revenue with growth in the mid-to-high teens compared to the year-ago period, and up in the mid-teens from the fourth quarter of 2019. Operating income is expected to be in the range of $90 to $100M including approximately $80M in higher freight costs, due to supply chain disruptions.
“I am extremely proud of the team’s outstanding execution throughout the past year, which has instilled real structural improvements within our company. Inventory and real-estate optimisation combined with strong demand fuelled by product improvements have reignited profitability at the American Eagle brand,” said CEO and Chairman Jay Schottenstein. “Aerie cemented another year of industry-leading growth and achieved a substantial inflection in profitability as its powerful brand platform continued to scale. Operational excellence drove solid results amidst external disruptions.”
American Eagle made key investments in its supply chain in 2021, including the acquisition of Quiet Logistics, which operates a network of fulfillment centers. It also acquired AirTerra, a new logistics start-up that aggregates packages from multiple shippers through its own network in major metropolitan areas.
“We closed out a milestone year for our supply chain, anchored by two key acquisitions, which secured cost efficiencies, locked in key strategic advantages and created a new platform for future growth,” said Schottenstein. “As I look forward, I see tremendous growth potential and opportunities across the organisation.”