Courtesy of AEO Inc.
American Eagle Outfitters has fared relatively well during the pandemic.
Aerie has fueled a lot of the success with its comfortable clothes and positive brand message.
The company has made some key changes to its supply chain, too, and it s evaluating its store fleet.
The past year has been a tough one for the apparel industry, but American Eagle Outfitters Inc. is standing out from the pack.
As the COVID-19 pandemic has upended the retail industry and sent more shoppers online, American Eagle Outfitters has leaned into its social media savvy and strong brand messaging, accelerated its plans to speed up its supply chain, and reevaluated its store base.
Jan 13, 2021 at 7:27AM
The COVID-19 pandemic accelerated e-commerce adoption while wiping out many of the retail businesses that struggled to adapt.
American Eagle Outfitters (NYSE:AEO), however, is in a position to survive and ultimately thrive for three reasons.
1. Online success
Prior to the pandemic, American Eagle Outfitters already had the systems and logistics in place to deliver products straight to shoppers doors a division it dubbed AEO Direct. Its digital sales accounted for 29% of overall revenue in 2019.Having a successful online business already in place entering the pandemic allowed customers easy access to American Eagle Outfitters various apparel brands without having to venture into a retail store. This was made clear in its most recent quarter, as in-person sales fell 16% year-over-year, but overall sales were buoyed by online strength, only dropping 3%.