A shopper wearing a protective mask walks past a sale sign inside an American Eagle Outfitters Inc. clothing store in Westfield San Francisco Center in San Francisco, California, United States on Thursday, June 18, 2020.
Michael Short | Bloomberg | Getty Images
American Eagle announced, ahead of a virtual meeting with investors Thursday, that fourth-quarter sales will decline by low single digits, driven by a drop in brick and mortar store sales due to weak mall traffic during the Covid pandemic.
The clothing retailer expects the momentum to continue online. Teenage lingerie brand Aerie is forecast to increase sales in the region of 20% in the fourth quarter, while American Eagle brand of the same name is forecasting a low double-digit decline in sales.
American Eagle shares fell more than 3% in premarket trading.
“Compelling vacation products and marketing, combined with a disciplined approach to promotional activities, resulted in very strong margin results,” CEO Jay Schottenstein said in a statement. “I think we are well positioned on the way into 2021.”
The retailer is expected to announce its fourth quarter and fiscal 2020 results on March 3rd.
In a separate press release Thursday, American Eagle set longer-term financial targets aimed at growing the Aerie business to $ 2 billion as the company works on its eponymous banner to improve profits.
Overall, the company expects fiscal 2023 sales of $ 5.5 billion and operating income of $ 550 million.
Read the press releases here.
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