American Eagle beats quarterly revenue estimates
(Reuters) — American Eagle Outfitters (NYSE:AEO) topped Wall Street expectations for fourth-quarter revenue on Thursday, as consumers purchased the apparel retailer's full-price items during the crucial holiday shopping season in the United States.
Shares of the company were up about 10% in premarket trading, after it also forecast full-year and first-quarter revenue growth largely in line with expectations.
Like peers, the Aerie parent has worked towards trimming inventory levels and introducing fresh styles to appeal to budget-conscious consumers, who are wary of non-essential purchases in a choppy macro environment.
American Eagle has tried to steer towards higher-margin products, which include its spring collection. It has also invested in modernizing its delivery network in a bid to reduce costs.
The company's revenue grew 12% to $1.68 billion for the fourth quarter, compared with LSEG estimates of an 11.3% growth to $1.66 billion.
Read more on investing.com
