Net revenue

American Eagle reports $1.2 billion in net revenue for the second quarter of 2022

American apparel and accessories retailer American Eagle Outfitters (AEO) reported total net sales of $1.2 billion for the second quarter (Q2) of fiscal year 2022 (FY22).

Revenue from the American Eagle business fell 8% to $778 million from a year ago, while its comparable sales also fell 10% from Q2 2021.

The Aerie business posted revenue of $372 million, up 11% from a year ago, but its comparative sales fell 6% from the second quarter of 2021.

AEO’s consolidated store and total digital revenue for Q2 2022 decreased 2% and 6% respectively.

In the three months to July 30, AEO’s operating profit fell significantly from $168 million to $14 million year-over-year.

The company also saw a 26% drop in gross profit, from $502 million to $370 million, compared to the same period last year.

In the 26 weeks to July 30, AEO reported a slight improvement in total revenue to $2.25 billion from $2.22 billion a year earlier.

The company expects its gross margin rate to be in the mid-30s for the third quarter (Q3) and at a low of 30s for the fourth quarter (Q4) of FY22.

AEO Chairman and CEO Jay Schottenstein said, “This is an unprecedented time in retail.

“As we cycle last year’s bumper demand, a more challenging macroeconomic environment is impacting consumer spending behavior.

“Second quarter performance reflected these challenges, limiting revenue and amplifying pressure on margins as we fully eliminated excess spring and summer product.

“In a changing macro environment, we focus on controlling the controllable.

“We entered the second half with inventory levels in a much better position and an assortment that is on point for the fall season.

“Given the continued external uncertainties, we have taken additional steps to improve financial performance.”

Based in Pittsburgh, Pennsylvania, AEO provides lifestyle products, apparel and accessories primarily to male and female college and high school students.