(Reuters) - American Eagle Outfitters Inc’s quarterly revenue missed estimates on Thursday as its online sales took a hit from shoppers returning to physical stores on easing pandemic curbs, sending the shares of the apparel chain down 10%. The company’s second-quarter digital sales fell 5% from a year earlier, also hit by stiff e-commerce competition from firms including Amazon.com Inc and Poshmark, although it remained higher compared with pre-pandemic levels. Revenue came under pressure from back-to-school selling season and some tax-free shopping events moving to the third quarter, American Eagle executives said on the earnings call. American Eagle, which last month acquired logistics startup AirTerra, said it hopes to make digital sales account for half of its revenue in the longer term, up from 35% in the second quarter. However, the owner of Aerie brand said it expects a robust holiday season by booking products early and spending more on transporting goods to its stores, even as it grapples with industry-wide supply chain issues. Total net revenue rose 35% to $1.19 billion in the second quarter ended July 31, missing Refinitiv-IBES estimates of $1.23 billion. However, it rose about 15% from pre-pandemic levels in 2019, below the median increase reported by U.S. consumer companies tracked by BMO Capital Markets analysts. Reporting by Praveen Paramasivam and Reshma Rockie George in Bengaluru; Editing by Ramakrishnan M. Our Standards: The Thomson Reuters Trust Principles.