$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