American Eagle Outfitters ( NYSE: AEO ) updated guidance ahead if an appearance at the ICR Conference in Orlando, Florida.
The retailer disclosed that Q4 brand revenue through January 7 is down approximately 3%, which is noted to be on the higher end of prior expectations. The American Eagle ( AEO ) brand is tracking slightly ahead and Aerie in line with expectations. Meanwhile, Quiet Logistics is expected to add two percentage points to Q4 brand revenue.
Gross margins are now expected to be on the high end of the company’s guidance of 32% to 33%, reflecting controlled promotions fueled by strong inventory management. Current inventory is said to be well-positioned with quarter-end inventories expected to be down compared to last year, in-line with prior guidance.
CEO update: "Looking ahead, we are focused on delivering a leading customer experience across brands, while prioritizing free cash flow and shareholder returns."
American Eagle Outfitters ( AEO ) will release full Q4 results on March 1.
Shares of AEO rose 2.42% in premarket action on Monday.
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