AEO Inc. Reports Strong Fourth Quarter and Fiscal Year 2024 Results; Provides Fiscal Year 2025 Outlook

Published: 2025-03-12 16:09:04 ET AEO

Fourth quarter comparable sales growth of 3%, operating income of $142 million Record Aerie revenue with comp growth of 6%; American Eagle comp growth of 1% Fiscal year comparable sales growth of 4%; record revenue with significant profit expansion Record Aerie revenue with comp growth of 5%. American Eagle comp growth of 3% GAAP operating income of $427 million. Adjusted operating income up 19% to $445 million Over $190 million returned to shareholders through shares repurchases in 2024; Board of Directors authorizes additional 50 million shares for repurchase

American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the fourth quarter and fiscal year 2024 ended February 1, 2025.

“2024 demonstrated significant progress on our Powering Profitable Growth Plan. The team delivered strong operating profit growth with positive momentum across our brands and channels as well as disciplined expense management and operating efficiencies,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer.

“Entering 2025, the first quarter is off to a slower start than expected, reflecting less robust demand and colder weather. While we anticipate improvement as the Spring season gets underway, we are also taking proactive steps to strengthen the top-line, manage inventory and reduce expenses. As we navigate through an uncertain consumer and operating landscape, we will also remain focused on our long-term strategic priorities,” he added.

Fourth Quarter 2024 Results:

Fiscal Year 2024 Results:

Inventory

Total ending inventory decreased 1% to $637 million. Inventory is healthy and well positioned for the Spring season.

Shareholder Returns

In the fourth quarter the company repurchased 3.5 million shares for $60 million, bringing full-year repurchases to 9.5 million shares for $191 million. The company also returned approximately $24 million in cash to shareholders through its quarterly cash dividend of $0.125 per share, bringing year-to-date cash dividends to $96 million.

New Share Repurchase Authorization

On March 11, 2025, the company's Board of Directors authorized an additional 50 million shares for repurchase under its existing authorization, increasing the total shares available for repurchase to 68.5 million through February 3, 2029.

Share repurchases may be made from time to time in open market or private transactions in such manner as may be deemed advisable from time to time (including, without limitation, pursuant to one or more 10b5-1 trading plans, accelerated share repurchase programs, and any other method that the company may deem advisable) and may be discontinued at any time.

Capital Expenditures

Capital expenditures totaled $65 million in the fourth quarter and $223 million for fiscal year 2024. The company expects 2025 capital expenditures to be approximately $300 million. This includes a one-time $40 million cost of relocating to a new Manhattan office, which provides more favorable lease terms.

Outlook

The company’s outlook reflects near-term headwinds in the consumer and macroeconomic operating environment, balanced with proactive steps the company is taking to strengthen the top-line and reduce expenses.

First Quarter 2025 Outlook

Fiscal Year 2025 Outlook

Revenue

Mid-single digit decline

Low-single digit decline

Gross Margin

Down YoY

SG&A

Flat dollars

Low-single digit dollar decline

D&A

Approximately $230M

Operating Income

$20 to $25 million

$360 to $375 million

Tax Rate

Approximately 25%

Weighted Average Share Count

Low 190 million*

Capital Expenditures

Approximately $300 million

*Does not include repurchase activity beyond offsetting internal grants

Webcast and Supplemental Financial Information

Management will host a conference call and real time webcast today at 4:30pm Eastern Time. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to www.aeo-inc.com to access the webcast and audio replay. Additionally, a financial results presentation is posted on the company’s website.

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer with a portfolio of beloved apparel brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed. Rooted in optimism, inclusivity and authenticity, AEO’s brands empower every customer to celebrate their unique personal style by offering casual, comfortable, timeless outfitting and high-quality products that are made to last.

AEO Inc. operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through a global network of license partners. Additionally, the company operates a robust e-commerce business across its brands. For more information, visit aeo-inc.com.

Non-GAAP Measures

This press release includes operating income and diluted earnings per share presented on an adjusted or non-GAAP basis, which are non-GAAP financial measures. These financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. We believe that this non-GAAP information is useful as an additional means for investors to evaluate our operating performance when reviewed in conjunction with our GAAP Consolidated Financial Statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and, therefore, should not be used exclusively in evaluating our business and operations. The tables included in this release reconcile the GAAP financial measures to the non-GAAP financial measures discussed above for the 52 weeks ended February 1, 2025 and the 13 and 53 weeks ended February 3, 2024.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent management’s expectations or beliefs concerning future events, including, without limitation, the outlook for first fiscal quarter and annual fiscal 2025. Words such as “outlook,” "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," “may,” “potential,” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended February 3, 2024 and in any other filings that we may make with the Securities and Exchange Commission, in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; the possibility that product costs are adversely affected by foreign trade issues (including import tariffs and other trade restrictions imposed by the U.S., China or other countries), currency exchange rate fluctuations, increasing prices for raw materials, supply chain issues, political instability or other reasons; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity.

The use of the “company,” “AEO,” “we,” "us," and “our” in this release refers to American Eagle Outfitters, Inc.

AMERICAN EAGLE OUTFITTERS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited; Dollars in thousands)

Fiscal Years Ending

February 1, 2025

February 3, 2024

308,962

354,094

50,000

100,000

636,655

640,662

262,365

247,934

76,088

65,082

20,161

25,578

1,354,231

1,433,350

1,295,400

1,005,293

751,264

713,336

225,079

225,303

68,158

82,064

42,449

46,109

94,194

52,454

3,830,775

3,557,909

280,712

268,308

313,034

284,508

113,388

152,353

70,094

66,285

30,677

46,114

74,751

73,604

882,656

891,172

1,133,296

901,122

47,963

28,856

1,181,259

929,978

—

2,496

365,845

360,378

(56,390

)

(16,410

)

2,456,063

2,214,159

(1,001,154

)

(823,864

)

1,766,860

1,736,759

3,830,775

3,557,909

1.53

1.61

AMERICAN EAGLE OUTFITTERS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; Dollars and shares in thousands, except per share amounts)

GAAP Basis

Fourth Quarter Ended

February 1, 2025

February 3, 2024

(In thousands)

(Percentage of

revenue)

(In thousands)

(Percentage of

revenue)

1,604,633

100.0

1,678,910

100.0

1,005,458

62.7

1,064,324

63.4

599,175

37.3

614,586

36.6

401,628

25.0

427,090

25.4

0.0

120,420

7.1

55,277

3.4

57,840

3.5

142,470

8.9

9,236

0.6

(2,355

)

(0.1

)

(4,961

)

(0.3

)

(3,154

)

(0.2

)

(1,505

)

(0.1

)

147,779

9.2

15,702

1.0

43,433

2.7

9,386

0.6

104,346

6.5

6,316

0.4

0.55

0.03

0.54

0.03

190,497

197,524

193,496

199,589

AMERICAN EAGLE OUTFITTERS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; Dollars and shares in thousands, except per share amounts)

GAAP Basis

Fiscal Year Ended

February 1, 2025

February 3, 2024

(In thousands)

(Percentage of

revenue)

(In thousands)

(Percentage of

revenue)

5,328,652

100.0

5,261,770

100.0

3,239,719

60.8

3,237,192

61.5

2,088,933

39.2

2,024,578

38.5

1,431,814

26.9

1,433,300

27.2

17,561

0.3

141,695

2.7

212,255

4.0

226,866

4.4

427,303

8.0

222,717

4.2

(7,769

)

(0.1

)

(6,190

)

(0.1

)

(7,162

)

(0.1

)

(10,951

)

(0.2

)

442,234

8.2

239,858

4.5

112,854

2.0

69,820

1.3

329,380

6.2

170,038

3.2

1.71

0.87

1.68

0.86

193,056

195,646

196,412

196,863

1,000,935

1,066,092

3,385,231

3,361,579

539,673

537,462

1,738,414

1,670,000

74,906

159,576

243,907

489,056

(10,881

)

(84,220

)

(38,900

)

(258,865

)

1,604,633

1,678,910

5,328,652

5,261,770

AMERICAN EAGLE OUTFITTERS, INC.

STORE INFORMATION

(Unaudited)

Fourth Quarter Ended

Fiscal Year Ended

February 1, 2025

1,186

1,182

—

(25

)

(45

)

(13

)

—

)

1,172

829

318

1,172

7,215

371

AMERICAN EAGLE OUTFITTERS, INC.

GAAP to Non-GAAP Reconciliation

(Dollars in thousands, except per share amounts)

Fiscal Year Ended

February 1, 2025

Operating

Income

Income Tax

Expense

Effective Tax

Rate

Net Income

Earnings per

Diluted Share

427,303

112,854

25.5

329,380

1.68

8.0

6.2

17,561

12,983

0.06

4,577

444,864

117,431

25.5

342,363

1.74

8.3

6.4

AMERICAN EAGLE OUTFITTERS, INC.

GAAP to Non-GAAP Reconciliation

(Dollars in thousands, except per share amounts)

Fourth Quarter Ended

February 3, 2024

Gross

Operating

Income Tax

Effective

Net

Earnings per

Profit

Income

Expense

Tax Rate

Income

Diluted Share

614,586

9,236

9,386

59.8

6,316

0.03

36.6

0.6

0.4

10,950

131,370

115,081

0.58

16,289

(34.7

625,536

140,606

25,675

17.5

121,397

0.61

37.3

8.4

7.2

AMERICAN EAGLE OUTFITTERS, INC.

GAAP to Non-GAAP Reconciliation

(Dollars in thousands, except per share amounts)

Fiscal Year Ended

February 3, 2024

Gross

Operating

Income Tax

Effective

Net

Earnings per

Profit

Income

Expense

Tax Rate

Income

Diluted Share

2,024,578

222,717

69,820

29.1

170,038

0.86

38.5

4.2

3.2

10,950

152,645

129,875

0.66

22,770

(5.3

2,035,528

375,362

92,590

23.6

299,913

1.52

38.7

7.1

5.7

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