American Eagle said it was expecting “huge year” for its jeans business as it introduces new styles and take advantage of the woes of some its rivals.
“Gap’s recent announcement of closing over 200 stores … I’m excited by that, that’s a huge opportunity for us to continue to capture market share,” Madore said on the call with analysts.
Gap said last month it would separate its better-performing Old Navy brand and shut about 230 stores of its struggling namesake apparel business, in one of its biggest restructuring efforts to energize sales.
Pittsburgh-based American Eagle’s same-store sales rose 6 percent in the fourth quarter ended Feb. 2, in line with analysts’ estimates. However, its total net revenue rose just 1 percent to $1.24 billion, missing analysts’ estimates of $1.26 billion.
Excluding items, the company earned 43 cents per share, marginally beating analysts’ average estimate of 42 cents.
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