Thu, Aug 29, 8:06 PM (138 days ago)
American Eagle Outfitters, Inc. reported strong quarterly performance for the period ending August 3, 2024, with total net revenue rising 8% to $1.291 billion compared to $1.201 billion in the same quarter last year. The growth was driven by increases in both American Eagle and Aerie brands, with comparable sales up 5% and 4%, respectively. Gross profit improved by 10% to $499 million, enhancing the gross margin to 38.6%. Operating income surged 55% to $101 million, reflecting significant operational efficiencies and a reduction in depreciation costs. Despite facing macroeconomic challenges, the company maintained a solid cash position of $191.8 million, with no outstanding borrowings under its $700 million credit facility. However, cash used in financing activities increased significantly due to share repurchases totaling $130.9 million and dividends paid of $48.6 million. The effective tax rate decreased to 25.4% from 27.0%, contributing to a net income increase of 59% to $77.3 million, resulting in diluted earnings per share of $0.39. Overall, AEO's financial health reflects effective cost management and strategic growth initiatives amid a challenging retail environment.