American Eagle Outfitters has rolled out a new artificial intelligence-based tool to aid in managing its inventory replenishment so that it can keep leaner stocks.
“Early results are showing quicker and more accurate placement with improved in-stock levels,” COO and EVP Michael Rempell said on the company’s Q2 earnings call last week. “This is allowing us to better service demand with lower inventory across the network.”
Inventories at the apparel seller were down 7% to $637 million YoY during the quarter while its gross margin rate was up nearly 7 percentage points. The company attributed higher merchandise margin to better inventory control and lower transportation costs.
Source: Supply Chain Dive
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