Friday, 16 Apr 2021

American Eagle forecasts higher spending for fiscal 2021

FILE PHOTO: Clothing is seen for sale in an American Eagle Outfitters retail store in Manhattan, New York, U.S., May 13, 2016. REUTERS/Mike Segar

(Reuters) – American Eagle Outfitters Inc forecast higher spending for fiscal 2021 on Wednesday, as the apparel retailer plans supply chain investments to ensure fast delivery and easy shopping for consumers making online purchases.

The company said it expects annual capital expenditure to be in the range of $250 million to $275 million, up from $128 million in 2020.

Aerie, the company’s most popular brand, recorded a revenue rise of 25% in the fourth quarter ended Jan. 30 from a year earlier, while revenue at the American Eagle label fell 9%.

Digital revenue surged 35% surged, helped by features such as same-day delivery and curbside pickup.

Net income came in at $3.5 million, or 2 cents per share, compared with a profit of $4.76 million, or 3 cents per share.

Total net revenue fell about 2% to $1.29 billion compared with analysts’ expectations of $1.28 billion.

The company incurred $103 million in pre-tax impairment and COVID-19 related charges in the quarter.

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