US-based lifestyle, clothing and accessories retailer American Eagle Outfitters (AEO) has reported a 35% increase in its total net revenue to $1.19bn in the second quarter of the year.
During the period, the company’s Aerie sub-brand saw its revenue increase by 34% to $336m from the second quarter of last year.
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Its American Eagle brand’s revenue rose by 35% to $846m against the second quarter of last year.
Driven by increasing store traffic, the company’s consolidated store revenue grew by 73% from the same period a year earlier.
AEO saw its digital revenue drop by 5% from the second quarter of last year, despite a 9% increase in total online demand.
The company also recorded an operating income of $168m in the quarter, compared to a $12m loss last year.
During the quarter, the company’s earnings per share (EPS) was $0.58 and its adjusted EPS was $0.60.
AEO board executive chairman and CEO Jay Schottenstein said: “It’s extremely gratifying to see significant growth across our business, as we delivered another quarter of record revenue and profitability.
“Results underscore the strength of our brands, outstanding product and a leading customer experience across selling channels.
“We are running our business with a laser focus on profitability through inventory and real-estate optimisation initiatives and investments to enhance our supply chain.
“Led by an expanding customer file, Aerie is achieving consistent, robust multi-year growth and very strong profit flow through.
“American Eagle posted meaningful top-and bottom-line increases, with significant unlock still ahead.
“Our Real Power. Real Growth. plan has been a guiding light for all facets of the business, positioning us to successfully navigate a dynamic macro environment.”
AEO closed the second quarter with total cash and short-term investments of $824m.
The company said it is on track to achieve an operating income of $600m this year.
