Thu, May 30, 8:27 PM (57 days ago)
American Eagle Outfitters, Inc. reported a 6% increase in total net revenue to $1.144 billion for the quarter ended May 4, 2024, compared to $1.081 billion in the same quarter last year. This growth was driven by an 8% increase in American Eagle brand revenue and a 4% increase in Aerie brand revenue, with comparable sales up 7% and 6% respectively. Gross profit rose 12% to $464 million, improving the gross margin by 240 basis points to 40.6%. Operating income surged 241% to $78 million, representing 6.8% of total revenue, largely due to higher gross profit and reduced impairment, restructuring, and other charges. Net income increased to $67.8 million or $0.34 per diluted share, compared to $18.5 million or $0.09 per diluted share in the prior year. Cash and cash equivalents stood at $300.5 million, with no outstanding borrowings under the company's $700 million credit facility. Capital expenditures were $36.2 million, primarily for store investments and information technology upgrades. The company remains focused on its profit improvement program, "Powering Profitable Growth," aiming for better gross margins and operational efficiency.