×
147
Fashion Jobs
NIKE
India Sports Marketing Manager
Permanent · Bengaluru
NIKE
Senior Dynamic Application Security Tester – Cis, Icc, India
Permanent · Bengaluru
NIKE
Lead Technical Product Manager – p&m, Icc, India
Permanent · Bengaluru
NIKE
Lead Product Manager, India – ed&a Icc
Permanent · Bengaluru
PVH
Manager, Business Solutions
Permanent · Bengaluru
NIKE
Senior Product Manager - Enterprise Service Management (Esm), India – Tech Ops Icc
Permanent · Bengaluru
NIKE
Identity And Access Management (Iam) Security Operations Engineer, India – Cis Icc
Permanent · Bengaluru
NIKE
Expert Security Incident Coordinator, India – Cis Icc
Permanent · Bengaluru
NIKE
Senior Security Engineer, India – Cis Icc
Permanent · Bengaluru
NIKE
Talent Acquisition Coordinator – India, Icc
Permanent · Bengaluru
SS HOMME - SARAH & SANDEEP
Marketing And PR Intern
Internship · MUMBAI
TARAMA
Graphic Designer
Internship · MUMBAI
MASAR GROUP
IT Support
Permanent · DUBAI
NIKE
Sap Security Engineer – Sec Tech, Icc, India
Permanent · Bengaluru
TLM CONSULTANCY
Merchandising Assistant
Internship · MUMBAI
NIYOSSHIC LUXURY CONSULTANCY
Social Media Intern
Internship · MUMBAI
NIYOSSHIC LUXURY CONSULTANCY
PR Assistant
Internship · MUMBAI
NIKE
Senior Dev Ops Engineer – Sec Tech, Icc, India
Permanent · Bengaluru
OUTHOUSE JEWELLERY
Communication Designer
Permanent · MUMBAI
OUTHOUSE JEWELLERY
Store Manager
Permanent · NEW DELHI
NIKE
Senior Sap Application Engineer- Sec Tech, Icc - India
Permanent · Bengaluru
MAC
Make up Artist - Mac - Nykaa Pacific Rajori
Permanent · Delhi
By
Reuters API
Published
Aug 30, 2018
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Lingerie brand Aerie's expansion to hit American Eagle profit

By
Reuters API
Published
Aug 30, 2018

American Eagle Outfitters Inc forecast third-quarter profit below expectations on Wednesday, as the retailer spends more on wages and advertising to support the expansion of its popular Aerie line of lingerie.


Photo: Aerie - Aerie



Shares of the company fell as much as 13.3 percent in early trading, with quarterly same-store sales at Aerie missing Wall Street estimates for the first time in at least two years.

Same-store sales at Aerie rose 27 percent in the second quarter. Analysts had expected the brand’s appeal among younger women to drive an average of a 30 percent increase in sales.

The collapse in sales for Victoria Secret’s Pink over the last three months had led analysts to raise their same-sales forecast by an average of 3 percent since the start of August.

Jane Hali & Associates analyst Jessica Ramirez said it was too early to see Aerie gain the market share lost by Pink in the face of several other smaller brands vying for the space.

American Eagle has been expanding the Aerie business as the brand surges in popularity, given its wide collection of bras, bralettes and lingerie for women of all body types.

The company raised wages in the second quarter and said it would continue to train and incentivize staff as it looks to open 50 to 80 Aerie stores next year.

“Our core products of jeans and bras within Aerie really require an enhanced selling effort and we actually think it’s a competitive differentiator for us,” Chief Financial Officer Robert Madore said on a conference call with analysts.

The additional investment in Aerie is likely to impact the company’s third-quarter earnings, which is expected to be between 45 cents and 47 cents per share. This came in below analysts’ expectation of 49 cents per share, according to Thomson Reuters I/B/E/S.

However, the company’s comparable sales beat estimates in the second quarter, thanks to a strong 7 percent rise in sales by its flagship American Eagle apparel line in the back-to-school season.

Net income nearly tripled to $60.3 million, or 34 cents per share and net revenue rose more than 14 percent to $964.9 million in the quarter ended Aug. 4. Both profit and revenue beat Wall Street estimates.

The company’s shares, which have gained 45 percent in value this year, were down 11 percent at $24.35 in morning trade, marking its worst day in over a year.

 

© Thomson Reuters 2021 All rights reserved.