Soaring sales on mobile devices mean big changes are coming to American Eagle.
Chief operations officer Michael Rempell told analysts on the apparel manufacturer and retailer’s Q4 2015 earnings call that sales on mobile devices grew nearly 100% year over year in 2015. American Eagle, No. 75 in the Internet Retailer 2015 Top 500 Guide and No. 97 in the 2016 Mobile 500, does not break out online or mobile sales in its earnings filing.
On the call, Rempell said the company is stepping up its efforts to better reach and convert those mobile shoppers heading into fiscal 2016.
“What I’m really excited about is we’re in the process of launching our new mobile responsive site, which is the website designed for mobile devices first and it’s still early, it’s going to be done by the end of this quarter,” Rempell said on the call, according to a transcript from Seeking Alpha. “We’re seeing very nice results including a nice increase in conversion for customers who’re coming to us through mobile devices.”
“As more and more of our tech-driven customers fuel our online business we will prioritize site optimization and mobile capacities capabilities,” CEO Jay Schottenstein added.
Mobile isn’t the only place where American Eagle has enjoyed a surge in momentum, however.
Schottenstein told analysts nearly 20% of all online orders during the fourth quarter were shipped directly from the company’s retail locations. American Eagle currently has 1,047 retail locations.
“Our investments in technology upgrades and omni(channel) tools are delivering,” he said.
For the fourth quarter ended Jan. 30, American Eagle reported:
- Net revenues of $1.106 billion, up 3.2% from $1.072 billion during the same time last year.
- Net income of $81.7 million, up 32.6% from $61.6 million last year.
- Comparable-store sales gains, including e-commerce, of 4%, compared to flat comparable sales during the prior-year quarter.
For 2015, American Eagle reported:
- Net revenues of $3.522 billion, up 7.3% from $3.283 billion last year.
- Net income of $218.1 million, up 171.6% from $80.3 million last year.
- Comparable-store sales gains including e-commerce of 7%, compared to a 5% decrease a year earlier.