An American clothing retailer, American Eagle Outfitters has revealed its financial year results for the third quarter ended October 28, 2017. Its total revenue during the quarter increased by 2 per cent to 960 million US Dollar against 941 million US Dollar same quarter last year.
However, the gross profit of American Eagle Outfitters declined from 378 million US Dollar last year to 375 million US Dollar this year. The net income of the company also plunged 16 per cent to 63.7 million US Dollar. A 3 per cent increase was reported in consolidated comparable sales following a 2 per cent increase last year 2016.
Operating income of American Eagle Outfitters during the reporting quarter stood at 111 million US Dollar, including 4 million US Dollar of restructuring charges related to severance and a lease buy-out. Adjusted operating income also declined from 118 million US Dollar to 115 million US Dollar this year.
Jay Schottenstein, Chief Executive Officer said that Digital sales continued to grow at a rapid pace and store sales strengthen during the third quarter. These results validate the investments in product leadership, innovation, quality and brand equity.
Thus, the American retailer expects an increase in revenue in the coming holiday season but estimates lower profit margins compared to last year 2016.
– Apparel and Textile News, Apparel Talk, Indian Apparel
