American Eagle revenue disappoints as online sales weaken

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Shares in the apparel retailer fell 8% in premarket trading as second-quarter digital sales declined 5% from a year earlier.

Major retailers including Target Corp (NYSE:TGT) and Gap Inc (NYSE:GPS) have reported a slowdown in digital sales in their latest quarterly reports, although they remain higher compared with pre-pandemic levels.

American Eagle’s consolidated revenue from its physical stores increased 73% from a year earlier in the second quarter ended July 31.

The company’s Aerie brand, which sells work-from-home favorites lingerie and lounge wear, posted a 34% rise in revenue to $336 million, while American Eagle label sales jumped 35% to $846 million.

Total net revenue jumped to $1.19 billion from $883.5 million a year earlier, missing analysts’ average estimate of $1.23 billion, according to Refinitiv IBES.