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Feb 01, 2025
American Eagle Q4 2024 Earnings Report
American Eagle reported a 3% increase in comparable sales and a record Aerie revenue.
Key Takeaways
American Eagle Outfitters reported Q4 FY24 revenue of $1.6 billion, down 4% year-over-year, impacted by the retail calendar shift. Comparable sales grew 3%, with Aerie leading at 6% and American Eagle at 1%. GAAP EPS was $0.54, and operating income reached $142 million with an 8.9% margin. The company repurchased 3.5 million shares and reduced operating expenses by 6%.
Revenue reached $1.6 billion, a 4% decline due to retail calendar shifts.
Comparable sales increased 3%, driven by 6% growth at Aerie and 1% at American Eagle.
Operating income rose slightly to $142 million, with an 8.9% margin.
GAAP EPS was $0.54, and the company repurchased 3.5 million shares for $60 million.
Forward Guidance
AEO expects Q1 FY25 revenue to decline mid-single digits and FY25 revenue to decline low-single digits, with a focus on managing inventory and reducing expenses.
Positive Outlook
- Continued investment in cost management and efficiency improvements.
- Aerie brand growth remains strong, leading comparable sales growth.
- Operating income guidance for FY25 is set between $360 million and $375 million.
- Board authorized an additional 50 million shares for repurchase.
- Healthy inventory positioning for the Spring season.
Challenges Ahead
- Q1 FY25 revenue expected to decline mid-single digits.
- Macroeconomic challenges impacting consumer demand.
- Higher freight and product costs affecting gross margins.
- Lower discretionary spending due to economic uncertainties.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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