American Eagle Outfitters on Wednesday topped analysts’ estimates for quarterly revenue, as consumers returned to work and social events thronged its stores to buy apparel and accessories despite stubbornly high inflation.
The company’s shares, which fell nearly 45% in 2022, were up about 8% in after-hours trading. Even as a threat of recession looms over the United States, demand for sportswear, dresses, and cargo pants has remained steady, benefiting apparel makers like American Eagle that have offered higher discounts to shoppers in order to get rid of excess stock.
In January, the company said that its fourth-quarter sales and profit margins were tracking at the high end of its forecasts, benefiting from its decision to right-size inventories and a better-than-expected performance at its American Eagle label. The company said on Wednesday it expects full-year revenue to be in the range of flat to up low-single digits. Analysts expect 3.2% growth, according to Refinitiv IBES data.
The company’s net revenue stood at $1.5 billion in the fourth quarter that ended while analysts on average had expected revenue of $1.48 billion.