American Eagle beats revenue estimates on robust demand

Apparel retailer American Eagle Outfitters Inc beat first-quarter revenue estimates on Wednesday, benefiting from easing restrictions and stimulus checks that boosted spending on clothes as people look forward to dressing up for outings.

The $1,400 stimulus checks that Americans' received in March has boosted consumer spending, and sales across apparel retailers, including American Eagle, which recorded an increase in sales for the first time since the onset of the pandemic.

Aerie, the company's most popular brand, recorded a rise of 89% in first-quarter revenue compared to 2019 levels, while revenue at the American Eagle label rose marginally.

Net income attributable to the company was $95.5 million, or 46 cents per share in the quarter ended May 1, compared with a loss of $257.2 million, or $1.54 per share, a year earlier.

Total net revenue jumped 87.5% to $1.03 billion. Analysts were expecting revenue of $1.02 billion, according to IBES data from Refinitiv.