© Reuters. FILE PHOTO: A view of an American Eagle Outfitters store in Arlington, Virginia, U.S., June 1, 2021. REUTERS/Erin Scott
(Reuters) – American Eagle Suppliers (NYSE:) beat analysts’ estimates for quarterly revenue on Wednesday, as consumers returning to work and social events packed its stores for clothing and accessories despite stubbornly high inflation.
The company’s shares, which have fallen nearly 45% in 2022, are up about 8% in after-hours trading.
Even as the threat of a recession looms over the United States, demand for sportswear, dresses and cargo pants has held steady, benefiting clothing manufacturers like American Eagle, which have offered shoppers deeper discounts for Get rid of excess stock.
In January, the company said its fourth-quarter sales and profit margins were at the high end of its forecasts, benefiting from its decision to right-size inventories and better-than-expected performance at its American Eagle label.
The company said Wednesday that it expects full-year revenue to be in the low to low-digit range. Analysts expect growth of 3.2%, according to data from Refinitiv IBES.
The company’s net income stood at $1.5 billion for the fourth quarter ended Jan. 28, while analysts had expected median revenue of $1.48 billion.