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American Eagle sees holiday-quarter gross sales dropping low-single digits amid weak mall site visitors

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A consumer sporting a protecting masks walks previous a sale signal at an American Eagle Outfitters Inc. clothes retailer at Westfield San Francisco Centre in San Francisco, California, U.S., on Thursday, June 18, 2020.

Michael Brief | Bloomberg | Getty Photographs

American Eagle forward of a digital assembly with traders Thursday mentioned it expects fourth-quarter income to lower within the low-single digits, pushed by a drop in brick-and-mortar retailer gross sales because of weak mall site visitors in the course of the Covid pandemic.

The attire retailer mentioned it expects momentum to proceed on-line. Its lingerie model for teenagers, Aerie, is forecast to develop fourth-quarter income within the high-20% vary, the corporate mentioned, whereas its namesake American Eagle model is forecast to see gross sales drop within the low double-digit vary.

American Eagle shares had been falling greater than 3% in premarket buying and selling.

“Compelling vacation product and advertising, mixed with a disciplined strategy to promotional exercise drove very sturdy margin outcomes,” Chief Govt Jay Schottenstein mentioned in a press release. “I imagine we’re well-positioned as we head into 2021.”

The retailer is predicted to report its fourth-quarter and monetary 2020 outcomes on March 3.

In a separate press launch Thursday, American Eagle laid out longer-term monetary targets, aiming to develop its Aerie enterprise to $2 billion, whereas it really works on enhancing earnings at its namesake banner.

General, the corporate mentioned it’s concentrating on income of $5.5 billion, and working earnings of $550 million, in fiscal 2023.

Read the press releases here.

This story is creating. Please examine again for updates.