The web once more trumped stores as the sales growth driver for American Eagle Outfitters Inc. in 2008.
In 2008 web sales for American Eagle grew by 26% to $307 million from $243.5 million. Total sales for American Eagle, No. 59 in the Internet Retailer Top 500 Guide, decreased by 2% to $2.99 billion from $3.05 billion while comparable store sales declined by 10%. Web sales for the year accounted for 10% of total sales. “The company’s direct business, which includes AE.com, Aerie.com, 77kids.com and MartinandOsa.com, is an important area of growth in fiscal 2008,” says American Eagle. Net income in 2008 dropped to $179 million from $400 million in 2007.
American Eagle didn’t break out web sales for the fourth quarter. Total sales decreased by 9% to $905.7 million from $995.4 million as comparable store sales declined by 16%. Net income for the final quarter of the year decreased to $32.7 million from $140.4 million. “Looking ahead, we cannot accept this kind of performance, recession or not. We know that our customer responds when we have the right fashion at the right price,” says American Eagle CEO Jim O’Donnell. “As such, we are vigorously pursuing major improvements within all of our brands, while maintaining a conservative approach toward inventory investments, capital spending and operating expense.”
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