$AEO (-2.21%) American Eagle Outfitters reported earnings
Q3 FY2024 results ended on November 2nd, 2024
- Total revenue: $1.29B, -1% YoY (includes $45M calendar shift impact)
- Net income: $80M vs $96.7M in Q3 2023
- Adjusted operating income: $123.7M, adjusted margin 9.6%
- Total comparable sales increased 3% following 5% growth last year
Jay Schottenstein, CEO: "Building on our positive performance in the first half of the year, third quarter results provide another proof point of the effectiveness of our Powering Profitable Growth Plan. Led by a strong back-to-school season, we achieved comparable sales growth across brands and channels."
🌱Revenue & Growth
- American Eagle revenue: $831.9M, -3% YoY
- Aerie revenue: $410.4M, +4.4% YoY
- American Eagle comps: +3% vs +2% last year
- Aerie comps: +5% vs +12% last year
💰Profits & Financials
- Gross profit: $526.6M vs $543.8M last year
- Gross margin: 40.9% vs 41.8% last year
- Operating income: $106.1M vs $125.4M last year
- Inventory: $804.3M, +5% YoY
📌Business Highlights
- Streamlined corporate cost structure
- Changed Hong Kong retail to licensed model
- Paid $24M in quarterly dividends
- Repurchased 6M shares for $131M YTD
- Total store count: 1,186
🔮Future Outlook
Q4 FY2024:
- Comp sales expected +1%
- Total revenue expected -4% (includes $85M calendar impact)
- Operating income: $125M-$130M
Full Year FY2024:
- Comp sales growth ~3%
- Total revenue growth ~1%
- Adjusted operating income: $428M-$433M vs $375M in 2023
- Capital expenditures: $225M-$245M
