Aerie Operating Income Up Almost Fivefold

Aerie’s “Show Off Balconette Rooftop Garden Lace Bra,” now $44.96, and “Show Off Rooftop Garden Lace Cami Bralette,” now $19.97, on the company website.

In the second quarter Aerie “adjusted operating income” soared almost fivefold to $57.253 million, as net revenue rose 2.3% to $380.413 million. In the same quarter last year the intimate apparel division of American Eagle Outfitters (AEO) reported adjusted operating income of $11.830 million on net revenue of $371.683 million.

“Aerie posted all-time high second quarter revenue,” explained the company. Commenting on the results for all of AEO, chairman Jay Schottenstein noted that “demand picked up in June and July reflecting brand strength and on trend collections that are resonating well with customers, supported by exciting new marketing campaigns. It’s encouraging to see positive momentum continue into the third quarter, across brands and channels.” While total sales were up for Aerie “Comp sales were flat” according to the firm.

AEO as a whole, which owns other brands offering a variety of apparel, reported a profit of $48.570 million on sales of $1.201 billion in the thirteen weeks ended July 29th, compared to a loss of $42.466 million on sales of $1.198 billion in the same period last year. — NM