American Eagle sales up 8 percent, increases profitability during the quarter

American Eagle Outfitters, Inc. announced on Thursday revenues rose 8 percent to $1.3 billion in the second quarter, thanks to solid gains in the U.S. retailer’s online and offline revenues.

By brand, Aerie revenue increased 9 percent $416 million, with comp sales up 4 percent, while American Eagle revenue rose 8 percent to $828 million, with comp sales growing 5%.

By channel, store revenue rose 7 percent, surpassed by digital revenue, which increased 12 percent.

For the three months ending August 3, net income rose to 77.3 million, compared to $48.6 million during the three months. Diluted earnings per share was $0.39.

“Our Powering Profitable Growth strategy is off to a great start, locking in a strong first half and setting us on track to achieve the high end of our prior operating profit outlook for 2024. The second quarter marked our sixth consecutive quarter of record revenue and we successfully leveraged our cost base – advancing a number of strategic priorities to fuel growth across brands and channels and drive operating efficiencies,” said Jay Schottenstein, AEO’s executive chairman of the board and chief executive officer.

“I am pleased with the positive reception we’ve seen to our early Fall collections. Our winning formula of outstanding quality and style offered at a great value remains a cornerstone of our brands, positioning us perfectly for today’s consumers. In a dynamic macroeconomic environment, we will remain disciplined and focused on delivering profitable growth and long-term shareholder value,” he continued.

For the third quarter, the company expects comparable sales to increase in the range of 3 percent to 4 percent, with total revenue flat to up slightly.