(Filed Under wholesale Lingerie News). Aerie, as it announced another sales and income jump in the fourth quarter, reported it is planning to open 50 new Aerie intimates stores and 30 Offline activewear shops this year.
In the conference call with analysts to discuss the quarter ended January 30, Jennifer Foyle, parent company American Eagle Outfitters’ chief creative officer, explained, “we’re approaching this mall-by-mall. In some cases, we’re exiting a side-by-side and opening up a standalone where we can have more square footage and get the true experience of Aerie.”
Aerie’s fourth quarter operating income rose 17.2% to $13,438,000 as sales jumped 24.7% to $336,709,000. In the same quarter last year operating income was $11,467,000 on sales of $270,007,000.
During the recent investor presentation before the quarterly filings, Aerie reported that its sales for fiscal 2020 hit $1 billion, adding it planned to invest heavily in new stores and digital growth, projecting fiscal 2023 sales of $2 billion and operating income of $310 million. Meanwhile, it expects to expand from the 342 locations in claimed as of the third quarter of 2020 (a mix of standalones, side-by-sides and Offline) to 550 by 2023.
During the same period, AEO said it aims to shrink to “600-700,” the number of its non-lingerie apparel stores in the U.S. and Canada. Those totaled 880 in the third quarter.
For the 52 weeks ended January 30, 2021, AEO as a whole lost $209,274,000 on sales of $3,759,113,000, compared to a profit of $ 191,257,000 on sales of $4,308,212,000 in the year ended February 1, 2020. In its investor presentation, AEO said it was targeting overall company revenue in 2023 of $5.5 billion with $550 million in operating income. — NM
A transcript of the entire conference call can be found here: https://seekingalpha.com/article/4411265-american-eagle-outfitters-inc-aeo-ceo-jay-schottenstein-on-q4-2020-results-earnings-call
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