(Reuters) – American Eagle Outfitters Inc missed quarterly revenue estimates on Thursday, hurt by a slowdown in its online business as people shop more at physical stores following vaccination drives and easing of coronavirus curbs.
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 and Gap Inc 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.
(Reporting by Praveen Paramasivam and Reshma Rockie George in Bengaluru; Editing by Ramakrishnan M.)
