American Eagle Outfitters, Inc. reported on Wednesday (Sept. 9) that Q2 digital demand, which is tracked by ordered sales, surged 48 percent. The apparel retailer reported that Aerie digital demand jumped 113 percent and AE rose 21 percent, according to an announcement.
“In the midst of an unprecedented crisis, we delivered a significant improvement from the first quarter throughout our business — a true testament to the agility, talent and commitment of our team,” American Eagle Outfitters Chairman and Chief Executive Officer Jay Schottenstein said in the announcement.
American Eagle Outfitters concluded Q2 with $899 million in cash and short-term investments, marking a rise from $317 million in 2019, after generating $173 million in operating cash flow in Q2.
Its cash balance at the conclusion of the quarter encompassed $406 million in funds from a convertible note offering in April and $200 million in borrowings from the firm’s revolving credit facility.
The firm had “incremental COVID-19 expenses and restructuring charges” of roughly $15 million before tax or 5 cents per share after tax in Q2 2020 compared to “restructuring charges” of $3 million before tax or 1 cent per share after tax in Q2 2019.
American Eagle Outfitters halted its dividend in June of this year and indicated it does not currently expect to declare a dividend for the remainder of 2020. Its Q1 cash dividend was “deferred” to next year and will be payable on April 23, 2021 to those on record for owning stock on April 9, 2021 at the end of the business day.
As for its overall results, American Eagle Outfitters reported adjusted loss per share of 3 cents on total net revenue of $884 million. The results exceed analyst expectations of a loss per share of 16 cents on $847.79 in revenue.
The news comes as American Eagle Outfitter’s digital demand accelerated in Q1, which was fueled by brand health and strong shopper engagement. Management noted at the time that online sales had surged 33 percent.