American Eagle Outfitters continues to be plagued by inflationary pressures and other macro headwinds.
“In a shifting macro environment, we are focused on controlling the controllables,” he added. “We entered the second half with inventory levels in a much better position and an assortment that is current for the fall season. Given ongoing external uncertainties, we have taken additional actions to improve financial performance. We have made more expansive expense reductions and are pulling back further on capital expenditures.
“To improve profitability and cash flow we have paused noncritical spending,” he explained. “This includes a hiring freeze and optimizing expenses within store compensation, professional services, travel and advertising. We have also lowered capital spending for the remainder of the year and into 2023.”
AEO’s operating income was $14 million for the quarter, compared with nearly $168 million last year, which included a $30 million impact from higher end-of-season selloffs, $25 million from higher freight costs and a $9 million loss from Quiet Logistics. Still, current quarter demand trends remain challenged, the company said, with brand revenues down in the high-single digits. As headwinds persist, the company is anticipating more promotional activity in the back half, with its third- and fourth gross-margin rates in the mid-30s and low-30s ranges, respectively.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Amazon Settles With Writers Guild For $4M-Plus Over Unpaid ResidualsJust last month the writers' union secured $42 million for hundreds of writers in a similar arbitration with Netflix.
Read more »
$358 Million Liquidated as Bitcoin Plunges to $18,800: What's Next?ICYMI: market saw a massive $358 million loss as Bitcoin experienced a plunge to $18,800 BTC $BTC
Read more »
US farmers can supply long-term energy and climate solutionsU.S. farmers are coming to the rescue as our nation and the world face an energy crisis while battling record-high inflation and tackling climate change.
Read more »
Apple must do battle with a fierce rival when it unveils the iPhone 14: InflationSo who’s going to have the cash and capacity to spend on Apple’s latest array of smartphones, watches and wearables? Prices are the real unknown going into the Wednesday afternoon event, some observers noted.
Read more »
Apple won't raise iPhone 14 prices as it battles with a fierce rival: InflationWhen the iPhone 13 came out, inflation was above 5%. It was 8.5% last month.
Read more »
Opinion | The Next Step in the Anti-Abortion Playbook Is Becoming ClearFor the anti-abortion movement, the emerging plan is an all-out fight for fetal personhood. MsReads via nytopinion
Read more »