Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries AEO Inc. Reports First Quarter Fiscal 2024 Results Reflecting Strong Execution on Powering Profitable Growth Strategy By: American Eagle Outfitters, Inc. via Business Wire May 29, 2024 at 16:15 PM EDT Record first quarter revenue of $1.1 billion, rising 6% to last year Operating profit of $78 million exceeded guidance Aerie achieved all-time high first quarter revenue with comps up 6% American Eagle sequentially accelerated, with comps increasing 7% American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the first quarter fiscal 2024 ended May 4, 2024. “Our strong first quarter results underscore the power of our iconic brand portfolio and demonstrate great progress on our Powering Profitable Growth strategy. We achieved record revenue, amplifying American Eagle’s and Aerie’s leading market positions and opportunity in casual apparel. We continued to offer exciting merchandise collections and customer activations, providing compelling in-store and digital shopping experiences. This, combined with actions to optimize our operations and drive efficiencies across the organization, contributed to meaningful profit expansion, which was ahead of expectations,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer. “As I look forward, I remain confident in our ability to deliver on our plans for 2024 and beyond. We have significant runway across our brands and we continue to execute with discipline as we drive our business to deliver sustained, profitable growth and returns to shareholders,” he continued. First Quarter 2024 Results compared to First Quarter 2023 Results: First quarter 2024 results are presented for the 13 weeks ended May 4, 2024 compared to the 13 weeks ended April 29, 2023. Comparable sales metrics are presented for the 13 weeks ended May 4, 2024 compared to the 13 weeks ended May 6, 2023. Total net revenue of $1.1 billion rose 6%. Store revenue rose 4%. Digital revenue increased 12%. Aerie revenue of $373 million rose 4%, with comp sales up 6%. American Eagle revenue of $725 million increased 8%, with comp sales growing 7%. Gross profit of $464 million increased 12%, reflecting a gross margin rate of 40.6%, expanding 240 basis points. Margin expansion was driven by strong inventory management, the company’s shift to a more profitable clearance strategy, lower product and transportation costs and leverage on expenses including rent, delivery, and distribution and warehousing. Selling, general and administrative expense of $333 million was up 7%. This was roughly in-line with sales growth and consistent with our guidance. Operating income of $78 million, compared to GAAP operating income of $23 million and adjusted operating income of $44 million last year. Compared to last year’s adjusted result, operating income increased 76% and the operating margin of 6.8% expanded 270 basis points. Diluted earnings per share of $0.34. Average diluted shares outstanding were 201 million. Inventory Total ending inventory increased 9% to $681 million, with units up 10%. Ending inventory includes higher end of season merchandise due to the company’s shift to a more profitable clearance strategy. Inventory levels are healthy and well positioned to fuel growth initiatives. Shareholder Returns In the first quarter, the company returned approximately $60 million in cash to shareholders. This included the repurchase of 1.5 million shares for approximately $35 million. The company continues to have 28.5 million shares remaining for repurchase under the current authorization. Additionally, the company paid a quarterly cash dividend of $0.125 per share, or approximately $25 million. Capital Expenditures Capital expenditures totaled $36 million in the first quarter. For fiscal 2024, management continues to expect capital expenditures to approximate $200 to $250 million. Outlook For fiscal 2024, management continues to expect operating income in the range of $445 to $465 million. This reflects revenue up 2 to 4% to last year, including an approximately one point headwind from one less selling week due to the retail calendar shift. For the second quarter, management expects operating income in the range of $95 to $100 million. This reflects revenue up high-single digits, including an approximately $55 million positive impact from the retail calendar shift. Webcast and Supplemental Financial Information Management will host a conference call and real time webcast today at 4:30 pm Eastern Time. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to www.aeo-inc.com to access the webcast and audio replay. Additionally, a financial results presentation is posted on the company’s website. About American Eagle Outfitters, Inc. American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there’s REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico and Hong Kong and ships to approximately 80 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 300 international locations operated by licensees in approximately 30 countries. To learn more about AEO and the company’s commitment to Planet, People and Practices, please visit www.aeo-inc.com. Non-GAAP Measures This release includes information on non-GAAP financial measures (“non-GAAP” or “adjusted”), including adjusted operating income for first quarter fiscal 2023. These financial measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles (“GAAP”) and are not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Management believes that this non-GAAP information is useful for an alternate presentation of the company’s performance, when reviewed in conjunction with the company’s GAAP consolidated financial statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the company’s business and operations. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures. The tables included in this release reconcile the GAAP financial measures to the non-GAAP financial measures discussed above. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent management’s expectations or beliefs concerning future events, including, without limitation, second fiscal quarter and annual fiscal 2024 results. Words such as “outlook,” "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," “may,” “potential,” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended February 3, 2024 and in any other filings that we may make with the Securities and Exchange Commission, in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity. The use of the “company,” “AEO,” “we,” "us," and “our” in this release refers to American Eagle Outfitters, Inc. AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands) May 4, 2024 April 29, 2023 Assets Current assets: Cash and cash equivalents $ 300,518 $ 117,841 Merchandise inventory 681,062 624,851 Accounts receivable, net 230,934 259,074 Prepaid expenses and other 98,803 127,735 Total current assets 1,311,317 1,129,501 Operating lease right-of-use assets 1,123,649 1,053,938 Property and equipment, at cost, net of accumulated depreciation 703,551 762,433 Goodwill, net 225,253 264,896 Non-current deferred income taxes 89,332 13,034 Intangible assets, net 45,178 92,399 Other assets 58,937 57,693 Total assets $ 3,557,217 $ 3,373,894 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 225,480 $ 212,318 Current portion of operating lease liabilities 303,603 321,430 Accrued compensation and payroll taxes 64,502 43,550 Unredeemed gift cards and gift certificates 57,373 57,014 Accrued income and other taxes 50,716 13,812 Other current liabilities and accrued expenses 71,655 68,313 Total current liabilities 773,329 716,437 Non-current liabilities: Non-current operating lease liabilities 1,002,529 987,048 Long-term debt, net — 30,225 Other non-current liabilities 29,003 21,168 Total non-current liabilities 1,031,532 1,038,441 Commitments and contingencies — — Stockholders’ equity: Preferred stock — — Common stock 2,496 2,496 Contributed capital 345,922 324,396 Accumulated other comprehensive loss (15,722 ) (26,777 ) Retained earnings 2,267,785 2,130,108 Treasury stock (848,125 ) (811,207 ) Total stockholders’ equity 1,752,356 1,619,016 Total liabilities and stockholders’ equity $ 3,557,217 $ 3,373,894 Current Ratio 1.70 1.58 AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share amounts) (unaudited) 13 Weeks Ended May 4, 2024 April 29, 2023 (In thousands) (Percentage ofrevenue) (In thousands) (Percentage ofrevenue) Total net revenue $ 1,143,867 100.0 % $ 1,080,926 100.0 % Cost of sales, including certain buying, occupancy and warehouse expenses 679,628 59.4 667,747 61.8 Gross profit 464,239 40.6 413,179 38.2 Selling, general and administrative expenses 333,493 29.2 312,345 28.9 Impairment and restructuring charges - 0.0 21,275 2.0 Depreciation and amortization expense 52,910 4.6 56,728 5.2 Operating income 77,836 6.8 22,831 2.1 Interest (income) expense, net (3,439 ) (0.3 ) 690 0.1 Other (income), net (1,396 ) (0.1 ) (3,311 ) (0.3 ) Income before income taxes $ 82,671 7.2 $ 25,452 2.3 Provision for income taxes 14,919 1.3 6,999 0.6 Net income $ 67,752 5.9 % $ 18,453 1.7 % Net income per basic share $ 0.34 $ 0.09 Net income per diluted share $ 0.34 $ 0.09 Weighted average common shares outstanding - basic 196,429 194,487 Weighted average common shares outstanding - diluted 201,310 197,160 AMERICAN EAGLE OUTFITTERS, INC. GAAP to Non-GAAP Reconciliation (Dollars in thousands, except per share amounts) 13 Weeks Ended April 29, 2023 OperatingIncome Provision forIncome Taxes NetIncome Earnings perDiluted Share GAAP Basis $ 22,831 $ 6,999 $ 18,453 $ 0.09 % of Revenue 2.1 % 1.7 % Add: Impairment, restructuring and other charges (1) $ 21,275 $ 15,424 $ 0.08 Tax effect of the above (2) $ 5,851 Non-GAAP Basis $ 44,106 $ 12,850 $ 33,877 $ 0.17 % of Revenue 4.1 % 3.1 % The following footnotes relate to impairment, restructuring, and other charges recorded in the 13 weeks ended April 29, 2023: (1) $21.3 million of charges related to Quiet Platforms restructuring: $10.8 million of long-term asset impairment primarily related to technology, which is no longer a part of the long-term strategy $5.6 million of severance based on this revised strategy $4.9 million of contract related charges All impairments were recorded due to insufficient prospective cash flows to support the asset value. (2) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis. AMERICAN EAGLE OUTFITTERS, INC. NET REVENUE BY SEGMENT (unaudited) 13 Weeks Ended (In thousands) May 4, 2024 April 29, 2023 Net Revenue: American Eagle $ 724,744 $ 671,092 Aerie 372,652 359,082 Other 54,984 109,357 Intersegment Elimination (8,513 ) (58,605 ) Total Net Revenue $ 1,143,867 $ 1,080,926 AMERICAN EAGLE OUTFITTERS, INC. STORE INFORMATION (unaudited) 13 Weeks Ended May 4, 2024 Consolidated stores at beginning of period 1,182 Consolidated stores opened during the period AE Brand (1) 3 Aerie (incl. OFFL/NE) (2) 1 Todd Snyder - Unsubscribed - Consolidated stores closed during the period AE Brand (1) (8 ) Aerie (incl. OFFL/NE) (2) (4 ) Unsubscribed (1 ) Total consolidated stores at end of period 1,173 Stores by Brand AE Brand (1) 846 Aerie (incl. OFFL/NE) (2) 307 Todd Snyder 15 Unsubscribed 5 Total consolidated stores at end of period 1,173 Total gross square footage at end of period (in '000) 7,221 International license locations at end of period (3) 315 (1) AE Brand includes AE stand alone locations, AE/Aerie side-by side locations, AE/OFFL/NE side-by-side locations, and AE/Aerie/OFFL/NE side-by-side locations. (2) Aerie (incl. OFFL/NE) includes Aerie stand alone locations, OFFL/NE stand alone locations, and Aerie/OFFL/NE side-by-side locations. (3) International license locations (retail stores and concessions) are not included in the consolidated store data or the total gross square footage calculation. View source version on businesswire.com: https://www.businesswire.com/news/home/20240529020707/en/Contacts Line Media 412-432-3300 LineMedia@ae.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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AEO Inc. Reports First Quarter Fiscal 2024 Results Reflecting Strong Execution on Powering Profitable Growth Strategy By: American Eagle Outfitters, Inc. via Business Wire May 29, 2024 at 16:15 PM EDT Record first quarter revenue of $1.1 billion, rising 6% to last year Operating profit of $78 million exceeded guidance Aerie achieved all-time high first quarter revenue with comps up 6% American Eagle sequentially accelerated, with comps increasing 7% American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the first quarter fiscal 2024 ended May 4, 2024. “Our strong first quarter results underscore the power of our iconic brand portfolio and demonstrate great progress on our Powering Profitable Growth strategy. We achieved record revenue, amplifying American Eagle’s and Aerie’s leading market positions and opportunity in casual apparel. We continued to offer exciting merchandise collections and customer activations, providing compelling in-store and digital shopping experiences. This, combined with actions to optimize our operations and drive efficiencies across the organization, contributed to meaningful profit expansion, which was ahead of expectations,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer. “As I look forward, I remain confident in our ability to deliver on our plans for 2024 and beyond. We have significant runway across our brands and we continue to execute with discipline as we drive our business to deliver sustained, profitable growth and returns to shareholders,” he continued. First Quarter 2024 Results compared to First Quarter 2023 Results: First quarter 2024 results are presented for the 13 weeks ended May 4, 2024 compared to the 13 weeks ended April 29, 2023. Comparable sales metrics are presented for the 13 weeks ended May 4, 2024 compared to the 13 weeks ended May 6, 2023. Total net revenue of $1.1 billion rose 6%. Store revenue rose 4%. Digital revenue increased 12%. Aerie revenue of $373 million rose 4%, with comp sales up 6%. American Eagle revenue of $725 million increased 8%, with comp sales growing 7%. Gross profit of $464 million increased 12%, reflecting a gross margin rate of 40.6%, expanding 240 basis points. Margin expansion was driven by strong inventory management, the company’s shift to a more profitable clearance strategy, lower product and transportation costs and leverage on expenses including rent, delivery, and distribution and warehousing. Selling, general and administrative expense of $333 million was up 7%. This was roughly in-line with sales growth and consistent with our guidance. Operating income of $78 million, compared to GAAP operating income of $23 million and adjusted operating income of $44 million last year. Compared to last year’s adjusted result, operating income increased 76% and the operating margin of 6.8% expanded 270 basis points. Diluted earnings per share of $0.34. Average diluted shares outstanding were 201 million. Inventory Total ending inventory increased 9% to $681 million, with units up 10%. Ending inventory includes higher end of season merchandise due to the company’s shift to a more profitable clearance strategy. Inventory levels are healthy and well positioned to fuel growth initiatives. Shareholder Returns In the first quarter, the company returned approximately $60 million in cash to shareholders. This included the repurchase of 1.5 million shares for approximately $35 million. The company continues to have 28.5 million shares remaining for repurchase under the current authorization. Additionally, the company paid a quarterly cash dividend of $0.125 per share, or approximately $25 million. Capital Expenditures Capital expenditures totaled $36 million in the first quarter. For fiscal 2024, management continues to expect capital expenditures to approximate $200 to $250 million. Outlook For fiscal 2024, management continues to expect operating income in the range of $445 to $465 million. This reflects revenue up 2 to 4% to last year, including an approximately one point headwind from one less selling week due to the retail calendar shift. For the second quarter, management expects operating income in the range of $95 to $100 million. This reflects revenue up high-single digits, including an approximately $55 million positive impact from the retail calendar shift. Webcast and Supplemental Financial Information Management will host a conference call and real time webcast today at 4:30 pm Eastern Time. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to www.aeo-inc.com to access the webcast and audio replay. Additionally, a financial results presentation is posted on the company’s website. About American Eagle Outfitters, Inc. American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there’s REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico and Hong Kong and ships to approximately 80 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 300 international locations operated by licensees in approximately 30 countries. To learn more about AEO and the company’s commitment to Planet, People and Practices, please visit www.aeo-inc.com. Non-GAAP Measures This release includes information on non-GAAP financial measures (“non-GAAP” or “adjusted”), including adjusted operating income for first quarter fiscal 2023. These financial measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles (“GAAP”) and are not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Management believes that this non-GAAP information is useful for an alternate presentation of the company’s performance, when reviewed in conjunction with the company’s GAAP consolidated financial statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the company’s business and operations. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures. The tables included in this release reconcile the GAAP financial measures to the non-GAAP financial measures discussed above. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent management’s expectations or beliefs concerning future events, including, without limitation, second fiscal quarter and annual fiscal 2024 results. Words such as “outlook,” "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," “may,” “potential,” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended February 3, 2024 and in any other filings that we may make with the Securities and Exchange Commission, in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity. The use of the “company,” “AEO,” “we,” "us," and “our” in this release refers to American Eagle Outfitters, Inc. AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands) May 4, 2024 April 29, 2023 Assets Current assets: Cash and cash equivalents $ 300,518 $ 117,841 Merchandise inventory 681,062 624,851 Accounts receivable, net 230,934 259,074 Prepaid expenses and other 98,803 127,735 Total current assets 1,311,317 1,129,501 Operating lease right-of-use assets 1,123,649 1,053,938 Property and equipment, at cost, net of accumulated depreciation 703,551 762,433 Goodwill, net 225,253 264,896 Non-current deferred income taxes 89,332 13,034 Intangible assets, net 45,178 92,399 Other assets 58,937 57,693 Total assets $ 3,557,217 $ 3,373,894 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 225,480 $ 212,318 Current portion of operating lease liabilities 303,603 321,430 Accrued compensation and payroll taxes 64,502 43,550 Unredeemed gift cards and gift certificates 57,373 57,014 Accrued income and other taxes 50,716 13,812 Other current liabilities and accrued expenses 71,655 68,313 Total current liabilities 773,329 716,437 Non-current liabilities: Non-current operating lease liabilities 1,002,529 987,048 Long-term debt, net — 30,225 Other non-current liabilities 29,003 21,168 Total non-current liabilities 1,031,532 1,038,441 Commitments and contingencies — — Stockholders’ equity: Preferred stock — — Common stock 2,496 2,496 Contributed capital 345,922 324,396 Accumulated other comprehensive loss (15,722 ) (26,777 ) Retained earnings 2,267,785 2,130,108 Treasury stock (848,125 ) (811,207 ) Total stockholders’ equity 1,752,356 1,619,016 Total liabilities and stockholders’ equity $ 3,557,217 $ 3,373,894 Current Ratio 1.70 1.58 AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share amounts) (unaudited) 13 Weeks Ended May 4, 2024 April 29, 2023 (In thousands) (Percentage ofrevenue) (In thousands) (Percentage ofrevenue) Total net revenue $ 1,143,867 100.0 % $ 1,080,926 100.0 % Cost of sales, including certain buying, occupancy and warehouse expenses 679,628 59.4 667,747 61.8 Gross profit 464,239 40.6 413,179 38.2 Selling, general and administrative expenses 333,493 29.2 312,345 28.9 Impairment and restructuring charges - 0.0 21,275 2.0 Depreciation and amortization expense 52,910 4.6 56,728 5.2 Operating income 77,836 6.8 22,831 2.1 Interest (income) expense, net (3,439 ) (0.3 ) 690 0.1 Other (income), net (1,396 ) (0.1 ) (3,311 ) (0.3 ) Income before income taxes $ 82,671 7.2 $ 25,452 2.3 Provision for income taxes 14,919 1.3 6,999 0.6 Net income $ 67,752 5.9 % $ 18,453 1.7 % Net income per basic share $ 0.34 $ 0.09 Net income per diluted share $ 0.34 $ 0.09 Weighted average common shares outstanding - basic 196,429 194,487 Weighted average common shares outstanding - diluted 201,310 197,160 AMERICAN EAGLE OUTFITTERS, INC. GAAP to Non-GAAP Reconciliation (Dollars in thousands, except per share amounts) 13 Weeks Ended April 29, 2023 OperatingIncome Provision forIncome Taxes NetIncome Earnings perDiluted Share GAAP Basis $ 22,831 $ 6,999 $ 18,453 $ 0.09 % of Revenue 2.1 % 1.7 % Add: Impairment, restructuring and other charges (1) $ 21,275 $ 15,424 $ 0.08 Tax effect of the above (2) $ 5,851 Non-GAAP Basis $ 44,106 $ 12,850 $ 33,877 $ 0.17 % of Revenue 4.1 % 3.1 % The following footnotes relate to impairment, restructuring, and other charges recorded in the 13 weeks ended April 29, 2023: (1) $21.3 million of charges related to Quiet Platforms restructuring: $10.8 million of long-term asset impairment primarily related to technology, which is no longer a part of the long-term strategy $5.6 million of severance based on this revised strategy $4.9 million of contract related charges All impairments were recorded due to insufficient prospective cash flows to support the asset value. (2) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis. AMERICAN EAGLE OUTFITTERS, INC. NET REVENUE BY SEGMENT (unaudited) 13 Weeks Ended (In thousands) May 4, 2024 April 29, 2023 Net Revenue: American Eagle $ 724,744 $ 671,092 Aerie 372,652 359,082 Other 54,984 109,357 Intersegment Elimination (8,513 ) (58,605 ) Total Net Revenue $ 1,143,867 $ 1,080,926 AMERICAN EAGLE OUTFITTERS, INC. STORE INFORMATION (unaudited) 13 Weeks Ended May 4, 2024 Consolidated stores at beginning of period 1,182 Consolidated stores opened during the period AE Brand (1) 3 Aerie (incl. OFFL/NE) (2) 1 Todd Snyder - Unsubscribed - Consolidated stores closed during the period AE Brand (1) (8 ) Aerie (incl. OFFL/NE) (2) (4 ) Unsubscribed (1 ) Total consolidated stores at end of period 1,173 Stores by Brand AE Brand (1) 846 Aerie (incl. OFFL/NE) (2) 307 Todd Snyder 15 Unsubscribed 5 Total consolidated stores at end of period 1,173 Total gross square footage at end of period (in '000) 7,221 International license locations at end of period (3) 315 (1) AE Brand includes AE stand alone locations, AE/Aerie side-by side locations, AE/OFFL/NE side-by-side locations, and AE/Aerie/OFFL/NE side-by-side locations. (2) Aerie (incl. OFFL/NE) includes Aerie stand alone locations, OFFL/NE stand alone locations, and Aerie/OFFL/NE side-by-side locations. (3) International license locations (retail stores and concessions) are not included in the consolidated store data or the total gross square footage calculation. View source version on businesswire.com: https://www.businesswire.com/news/home/20240529020707/en/Contacts Line Media 412-432-3300 LineMedia@ae.com
Record first quarter revenue of $1.1 billion, rising 6% to last year Operating profit of $78 million exceeded guidance Aerie achieved all-time high first quarter revenue with comps up 6% American Eagle sequentially accelerated, with comps increasing 7%
American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the first quarter fiscal 2024 ended May 4, 2024. “Our strong first quarter results underscore the power of our iconic brand portfolio and demonstrate great progress on our Powering Profitable Growth strategy. We achieved record revenue, amplifying American Eagle’s and Aerie’s leading market positions and opportunity in casual apparel. We continued to offer exciting merchandise collections and customer activations, providing compelling in-store and digital shopping experiences. This, combined with actions to optimize our operations and drive efficiencies across the organization, contributed to meaningful profit expansion, which was ahead of expectations,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer. “As I look forward, I remain confident in our ability to deliver on our plans for 2024 and beyond. We have significant runway across our brands and we continue to execute with discipline as we drive our business to deliver sustained, profitable growth and returns to shareholders,” he continued. First Quarter 2024 Results compared to First Quarter 2023 Results: First quarter 2024 results are presented for the 13 weeks ended May 4, 2024 compared to the 13 weeks ended April 29, 2023. Comparable sales metrics are presented for the 13 weeks ended May 4, 2024 compared to the 13 weeks ended May 6, 2023. Total net revenue of $1.1 billion rose 6%. Store revenue rose 4%. Digital revenue increased 12%. Aerie revenue of $373 million rose 4%, with comp sales up 6%. American Eagle revenue of $725 million increased 8%, with comp sales growing 7%. Gross profit of $464 million increased 12%, reflecting a gross margin rate of 40.6%, expanding 240 basis points. Margin expansion was driven by strong inventory management, the company’s shift to a more profitable clearance strategy, lower product and transportation costs and leverage on expenses including rent, delivery, and distribution and warehousing. Selling, general and administrative expense of $333 million was up 7%. This was roughly in-line with sales growth and consistent with our guidance. Operating income of $78 million, compared to GAAP operating income of $23 million and adjusted operating income of $44 million last year. Compared to last year’s adjusted result, operating income increased 76% and the operating margin of 6.8% expanded 270 basis points. Diluted earnings per share of $0.34. Average diluted shares outstanding were 201 million. Inventory Total ending inventory increased 9% to $681 million, with units up 10%. Ending inventory includes higher end of season merchandise due to the company’s shift to a more profitable clearance strategy. Inventory levels are healthy and well positioned to fuel growth initiatives. Shareholder Returns In the first quarter, the company returned approximately $60 million in cash to shareholders. This included the repurchase of 1.5 million shares for approximately $35 million. The company continues to have 28.5 million shares remaining for repurchase under the current authorization. Additionally, the company paid a quarterly cash dividend of $0.125 per share, or approximately $25 million. Capital Expenditures Capital expenditures totaled $36 million in the first quarter. For fiscal 2024, management continues to expect capital expenditures to approximate $200 to $250 million. Outlook For fiscal 2024, management continues to expect operating income in the range of $445 to $465 million. This reflects revenue up 2 to 4% to last year, including an approximately one point headwind from one less selling week due to the retail calendar shift. For the second quarter, management expects operating income in the range of $95 to $100 million. This reflects revenue up high-single digits, including an approximately $55 million positive impact from the retail calendar shift. Webcast and Supplemental Financial Information Management will host a conference call and real time webcast today at 4:30 pm Eastern Time. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to www.aeo-inc.com to access the webcast and audio replay. Additionally, a financial results presentation is posted on the company’s website. About American Eagle Outfitters, Inc. American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there’s REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico and Hong Kong and ships to approximately 80 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 300 international locations operated by licensees in approximately 30 countries. To learn more about AEO and the company’s commitment to Planet, People and Practices, please visit www.aeo-inc.com. Non-GAAP Measures This release includes information on non-GAAP financial measures (“non-GAAP” or “adjusted”), including adjusted operating income for first quarter fiscal 2023. These financial measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles (“GAAP”) and are not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Management believes that this non-GAAP information is useful for an alternate presentation of the company’s performance, when reviewed in conjunction with the company’s GAAP consolidated financial statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the company’s business and operations. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures. The tables included in this release reconcile the GAAP financial measures to the non-GAAP financial measures discussed above. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent management’s expectations or beliefs concerning future events, including, without limitation, second fiscal quarter and annual fiscal 2024 results. Words such as “outlook,” "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," “may,” “potential,” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended February 3, 2024 and in any other filings that we may make with the Securities and Exchange Commission, in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity. The use of the “company,” “AEO,” “we,” "us," and “our” in this release refers to American Eagle Outfitters, Inc. AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands) May 4, 2024 April 29, 2023 Assets Current assets: Cash and cash equivalents $ 300,518 $ 117,841 Merchandise inventory 681,062 624,851 Accounts receivable, net 230,934 259,074 Prepaid expenses and other 98,803 127,735 Total current assets 1,311,317 1,129,501 Operating lease right-of-use assets 1,123,649 1,053,938 Property and equipment, at cost, net of accumulated depreciation 703,551 762,433 Goodwill, net 225,253 264,896 Non-current deferred income taxes 89,332 13,034 Intangible assets, net 45,178 92,399 Other assets 58,937 57,693 Total assets $ 3,557,217 $ 3,373,894 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 225,480 $ 212,318 Current portion of operating lease liabilities 303,603 321,430 Accrued compensation and payroll taxes 64,502 43,550 Unredeemed gift cards and gift certificates 57,373 57,014 Accrued income and other taxes 50,716 13,812 Other current liabilities and accrued expenses 71,655 68,313 Total current liabilities 773,329 716,437 Non-current liabilities: Non-current operating lease liabilities 1,002,529 987,048 Long-term debt, net — 30,225 Other non-current liabilities 29,003 21,168 Total non-current liabilities 1,031,532 1,038,441 Commitments and contingencies — — Stockholders’ equity: Preferred stock — — Common stock 2,496 2,496 Contributed capital 345,922 324,396 Accumulated other comprehensive loss (15,722 ) (26,777 ) Retained earnings 2,267,785 2,130,108 Treasury stock (848,125 ) (811,207 ) Total stockholders’ equity 1,752,356 1,619,016 Total liabilities and stockholders’ equity $ 3,557,217 $ 3,373,894 Current Ratio 1.70 1.58 AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share amounts) (unaudited) 13 Weeks Ended May 4, 2024 April 29, 2023 (In thousands) (Percentage ofrevenue) (In thousands) (Percentage ofrevenue) Total net revenue $ 1,143,867 100.0 % $ 1,080,926 100.0 % Cost of sales, including certain buying, occupancy and warehouse expenses 679,628 59.4 667,747 61.8 Gross profit 464,239 40.6 413,179 38.2 Selling, general and administrative expenses 333,493 29.2 312,345 28.9 Impairment and restructuring charges - 0.0 21,275 2.0 Depreciation and amortization expense 52,910 4.6 56,728 5.2 Operating income 77,836 6.8 22,831 2.1 Interest (income) expense, net (3,439 ) (0.3 ) 690 0.1 Other (income), net (1,396 ) (0.1 ) (3,311 ) (0.3 ) Income before income taxes $ 82,671 7.2 $ 25,452 2.3 Provision for income taxes 14,919 1.3 6,999 0.6 Net income $ 67,752 5.9 % $ 18,453 1.7 % Net income per basic share $ 0.34 $ 0.09 Net income per diluted share $ 0.34 $ 0.09 Weighted average common shares outstanding - basic 196,429 194,487 Weighted average common shares outstanding - diluted 201,310 197,160 AMERICAN EAGLE OUTFITTERS, INC. GAAP to Non-GAAP Reconciliation (Dollars in thousands, except per share amounts) 13 Weeks Ended April 29, 2023 OperatingIncome Provision forIncome Taxes NetIncome Earnings perDiluted Share GAAP Basis $ 22,831 $ 6,999 $ 18,453 $ 0.09 % of Revenue 2.1 % 1.7 % Add: Impairment, restructuring and other charges (1) $ 21,275 $ 15,424 $ 0.08 Tax effect of the above (2) $ 5,851 Non-GAAP Basis $ 44,106 $ 12,850 $ 33,877 $ 0.17 % of Revenue 4.1 % 3.1 % The following footnotes relate to impairment, restructuring, and other charges recorded in the 13 weeks ended April 29, 2023: (1) $21.3 million of charges related to Quiet Platforms restructuring: $10.8 million of long-term asset impairment primarily related to technology, which is no longer a part of the long-term strategy $5.6 million of severance based on this revised strategy $4.9 million of contract related charges All impairments were recorded due to insufficient prospective cash flows to support the asset value. (2) The tax effect of excluded items is the difference between the tax provision calculated on a GAAP basis and an adjusted non-GAAP basis. AMERICAN EAGLE OUTFITTERS, INC. NET REVENUE BY SEGMENT (unaudited) 13 Weeks Ended (In thousands) May 4, 2024 April 29, 2023 Net Revenue: American Eagle $ 724,744 $ 671,092 Aerie 372,652 359,082 Other 54,984 109,357 Intersegment Elimination (8,513 ) (58,605 ) Total Net Revenue $ 1,143,867 $ 1,080,926 AMERICAN EAGLE OUTFITTERS, INC. STORE INFORMATION (unaudited) 13 Weeks Ended May 4, 2024 Consolidated stores at beginning of period 1,182 Consolidated stores opened during the period AE Brand (1) 3 Aerie (incl. OFFL/NE) (2) 1 Todd Snyder - Unsubscribed - Consolidated stores closed during the period AE Brand (1) (8 ) Aerie (incl. OFFL/NE) (2) (4 ) Unsubscribed (1 ) Total consolidated stores at end of period 1,173 Stores by Brand AE Brand (1) 846 Aerie (incl. OFFL/NE) (2) 307 Todd Snyder 15 Unsubscribed 5 Total consolidated stores at end of period 1,173 Total gross square footage at end of period (in '000) 7,221 International license locations at end of period (3) 315 (1) AE Brand includes AE stand alone locations, AE/Aerie side-by side locations, AE/OFFL/NE side-by-side locations, and AE/Aerie/OFFL/NE side-by-side locations. (2) Aerie (incl. OFFL/NE) includes Aerie stand alone locations, OFFL/NE stand alone locations, and Aerie/OFFL/NE side-by-side locations. (3) International license locations (retail stores and concessions) are not included in the consolidated store data or the total gross square footage calculation. View source version on businesswire.com: https://www.businesswire.com/news/home/20240529020707/en/