American Eagle Outfitters, Inc. (NYSE:AEO) is a leading global clothing retailer based in the United States. The company offers a range of apparel, accessories, lifestyle and personal care products for men and women under its American Eagle and Aerie brands. It operates retail locations as well as online stores, and its brick-and-mortar stores are spread across the United States, Canada, Mexico and Hong Kong. American Eagle also has a presence in more than 200 locations in Europe, Asia, Latin America and the Middle East through third-party operators.
Earnings recap
The apparel chain reported third-quarter earnings on Nov. 23, beating both the revenue and earnings estimates of Wall Street analysts.
American Eagle reported earnings of 76 cents per share compared to analyst estimates of 61 cents per share. The strong financial performance was fueled by increased consumer spending on discretionary products amid fading concerns regarding an economic recession.
American Eagle is coping with supply chain issues and shipping delays much better than some of its peers because of prudent strategic moves. To deal with supply chain disruptions, the company has been ramping up its shipping business by acquiring AirTerra, Inc. in August, and it announced the acquisition of Quiet Logistics for $350 million earlier this month. However, as demand is expected to be very high this holiday season, American Eagle expects an additional $70 million to $80 million in freight costs in the fourth…
