Lifestyle clothing retailer American Eagle Outfitters (AEO -2.63%) today launched a pair of filings in the current SEC report, announcing the start of curbside pickup at their stores, detailing their cost-cutting measures and increasing the bond supply from yesterday. These measures are additional steps the company is taking to weather the economic storms caused by the COVID-19 coronavirus pandemic.
American Eagle announces that it will begin offering curbside shopping pickup next Monday, April 27, allowing customers to buy in-stock apparel and get it the same day without entering closed retail stores. The company closed its physical locations on March 17, meaning they will be closed for 41 days when curbside pickup service begins after the weekend.
The report goes on to describe how American Eagle has experienced strong growth in its digital business. Digital purchases are now exceeding the company’s own forecasts, even though this segment already accounted for 29% of its sales last year, before the start of the coronavirus epidemic. The retailer also points out that it improved its ability to survive the recession by laying off employees, deferring dividends, reducing inventory and capital expenditures and drawing down $330 million in revolving credit to boost its current cash flow. at around $490 million.
The second filing of the day from American Eagle concerned its plans for $400 million bond issue, originally announced yesterday. Today, according to the latest Form 8-K, it is amending the offer to give initial buyers the option to buy up to an additional $60 million in bonds, while raising the total possible issuance to $500 million. dollars. The new bonds are apparently identical to the original issue, including the same 2025 maturity date.