American Eagle Outfitters has reported a rise in comparable sales for the second quarter, helped by a strong performance from its lingerie brand, Aerie.
In the 13 weeks to July 29, comparable sales rose 2%, following a 3% increase last year, while net revenue increased 3% to $845m (£660m), beating expectations.
Comparable sales for teen lingerie label Aerie rose 26% after American Eagle Outfitters opened nine Aerie retail locations, of which seven were in new markets.
CEO Jay Schottenstein said: “In the second quarter, we achieved sales and earnings above our expectations in a challenging retail environment. Sales trends improved and I’m proud of the continued growth in jeans, bottoms, women’s apparel and Aerie, with encouraging signs in men’s tops beginning to emerge.”
But despite a strong performance from Aerie, American Eagle’s operating income plummeted to $39m (£30m) from $69m last year after the company incurred restructuring charges totalling $21m.
These charges corresponded to an initiative to explore the closure or conversion of company owned and operated stores in the UK, Hong Kong and China to licensed partnerships.