American Eagle Outfitters Tops Earnings Estimates, Revenue Falls Short

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American Eagle Outfitters Tops Earnings Estimates, Revenue Falls Short

American Eagle Outfitters Reports First-Quarter Earnings

American Eagle Outfitters, Inc. (AEO) reported its first-quarter financial results on Wednesday after the market close.

Adjusted earnings per share came in at 17 cents, exceeding analyst estimates of 15 cents.

Quarterly revenue reached $1.143 billion, up from $1.08 billion in the same period last year, but slightly below analyst expectations of $1.15 billion.

Store revenue increased by 4%, while digital revenue grew by 12%.

Aerie, the company's intimates and activewear brand, saw revenue rise by 4%, with comparable sales up 6%.

American Eagle's revenue increased by 8%, with comparable sales growing by 7%.

Gross profit reached $464 million, an increase of 12%, with a gross margin rate of 40.6%, expanding by 240 basis points.

The company attributed the margin expansion to strong inventory management, a shift to a more profitable clearance strategy, lower product and transportation costs, and leverage on expenses.

Jay Schottenstein, CEO of American Eagle Outfitters, commented on the results, highlighting the company's strong brand portfolio and progress on its "Powering Profitable Growth" strategy. He emphasized record revenue, leading market positions, and exciting merchandise collections as key drivers of the company's success.

American Eagle Outfitters expects second-quarter operating income to be in the range of $95 million to $100 million and fiscal-year 2024 operating income to be between $445 million and $465 million.

Following the earnings release, AEO shares declined by 7.40% in after-hours trading, reaching $22.27 at the time of publication.