It’s been a quiet week with most retailers enjoying strong sales as back-to-school and the beginning of a new season drive consumers to shop.
FINANCE
American Eagle Outfitters (USA) reported Q2 net revenue rose 35% year-on-year to $1.19 billion. The retailer attributed strong sales to pent up demand.
- Net income reached $121.5 million from its year-ago $13.8 million loss.
- American Eagle revenue rose 35% to $846 million and Aerie revenue rose 34% to $336 million.
- Store revenue rose 73% year over year.
- Compared to 2019, store revenue rose 4% and digital rose 66%.
Digital Brands Group (USA) has acquired American basics apparel brand Stateside for $10 million.
- Stateside brand is cash flow positive, with a forecasted $6 million in revenue and $1 million in EBITDA this year.
- The group aims to eventually have a portfolio of 50 brands.
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SUPPLY CHAIN
Burlington Stores’ (USA) product sourcing costs rose by 78% in the past two years, a shift driven almost entirely by higher supply chain costs during the pandemic, Chief Financial Officer John Crimmins said on the company’s Q2 earnings call.
- Product sourcing costs, which include the cost of processing goods to its supply chain and buying costs were $82 million at a comparable time before the pandemic, in Q2 2019, the company said. In Q2 2021, they were $146 million.
- The surge in costs was due to increased wage costs and limited transport capacity.
“We underestimated the magnitude of the increase.” said John Crimmins.
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