Jay Schottenstein, CEO of American Eagle Outfitters, said Thursday that the U.S. mall is “not dead” and that the decade has been a boon for business.
The clothing retailer expects to extend its double-digit comparative sales growth to 27 quarters and maintain its position as a leader in denim, Schottenstein said in a CNBC appearance.
“We’re very excited, you know, about the future of the mall,” he said in a conversation with Jim Cramer about “Mad Money,” and we think that when things get better and the pandemic disappears … look to the ‘Roaring 20’s’. “
Schottenstein is one of the many hopeful figures who predict that the current decade will reflect the growth of a century ago. Consumer spending, driven in part by the last round of stimulus tests, rose by almost 10% in March, the latest positive sign of economic expansion and growing confidence.
“The sales we do, as in this quarter, … all the stores do compensation and we do it at a capacity of 50%,” Schottenstein said.
The remarks come one day after the Pittsburgh retailer said business for the fiscal first quarter exceeded projections, driven by government economic stimulus and pent-up demand, particularly for jeans. Shares of American Eagle Outfitters reached new highs and continued with a rally that began in late March.
The company’s share has risen 29% since March 24.