Despite making an understandable loss in the first quarter due to the effects of Coronavirus, American Eagle Outfitters is now seeing ‘pent-up demand.’
Another reason for this loss in Q1 was down to ‘aggressive’ inventory liquidation but on a brighter note the apparel retailer has announced that as its stores reopen, they are seeing a sales average of about 95 per cent of their normal levels. To date, 556 stores have reopened, with enhanced safety measures in place.
“We think we are getting more than our fair share of pent-up demand,” American Eagle CFO Mike Mathias said on the quarterly earnings call. “Clearly we’re the strongest store in the mall, and our customers are continuing to come to us.”
“Store closures and aggressive inventory liquidation had a significant impact on our first quarter financials,” said Jay Schottenstein, AEO’s chairman and CEO. “Yet customer engagement remained high and digital demand accelerated, well-exceeding our expectations. Aerie’s performance was truly exceptional despite store closures.”
