US-based clothing company, American Eagle Outfitters Inc (AEO) has lowered its annual sales projection as the brand reported mixed results for Q3, FY24.
The group’s sales declined by 1 per cent to $1.29 billion during the 13 weeks before November 2, 2024. However, the company’s revenues increased by 3 per cent. Flagship brand of the group, American Eagle registered a 3 per cent decline in sales reaching $831.9 million during the quarter. In contrast, sales of the lingerie brand Aerie rose by 4 per cent to $410.4 million.
Despite effective cost-cutting measures, the group’s operating profit lowered by 15 per cent to $106.1 million while net profit declined by 17 per cent to $80.0 million.
Ambiguity over the demand for the upcoming Christmas season led the group to lower its sales projection for the current fiscal year with it now anticipating sales to grow by 1 per cent as against the earlier projection of 3 per cent.
