About American Eagle Outfitters, Inc. (AEO) today reported consolidated comparable sales were up 2% in the second quarter and sales and earnings per share were above management expectations.

About American Eagle Outfitters, Inc.

American Eagle Outfitters offers on-trend clothing, accessories and personal care products under its American Eagle Outfitters® and Aerie® brands in more than 1,000 stores in the United States, Canada, Mexico, China and Hong Kong, and in 190 international locations operated by licensees.

Second Quarter 2017 Results

  • Total Net revenue: UP 3% to $845 million
  • Consolidated comparable sales: UP 2% (following a 3% increase last year)
  • Gross profit: DOWN 4.2% to $294 million
  • Gross margin rate: DOWN 240 basis points to 34.9% to revenue primarily due to increased promotional activity
  • Selling, general and administrative expense: UP 2% to $204 million
  • Adjusted operating income: DOWN 27.5% to $50 million compared to $69 million last year with a rate of 6.0% to revenue compared to 8.3% last year.
  • EPS: DOWN 47.8% to $0.12 compared to EPS of $0.23 last year while
  • adjusted EPS: DOWN 17.4% to $0.19

    • Shareholder Returns, Cash

  • Total cash: DOWN 22.2% to $193 million
  • Over the past year, AEO returned $88 million in share buybacks, $90 million in dividends and invested $187 million in capital expenditures, resulting in a lower cash balance.

    • Inventory

  • Total ending inventories at cost: UP 3% to $433 million
  • Ending units: Flat
  • Average unit cost: UP 2%

    • Store Information

  • Opened 9 new Aerie locations, of which 7 were in new markets
  • Opened 6 new AE stores, with 2 in Mexico and 4 in the U.S.
  • Opened 9 international licensed stores and closed 3.
  • For the remainder of the year, the company plans to:
    • > open another 5 AE stores and 5 Aerie stores in the U.S., Canada, and Mexico,
    • > open 32 new international licensed stores
    • > close a total of 25 to 40 stores
    • Print Friendly, PDF & Email

    Related Posts