American Eagle Outfitters, Inc. (AEO) reported first-quarter fiscal 2024 results, wherein earnings beat the Zacks Consensus Estimate, while revenues lagged the same. Top and bottom lines increased year over year, driven by brand strength and gains from progress on its Powering Profitable Growth strategy.The company’s first-quarter fiscal 2024 earnings of 34 cents per share doubled from adjusted earnings per share of 17 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of ...

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For the quarter ended April 2024, American Eagle Outfitters (AEO) reported revenue of $1.14 billion, up 5.8% over the same period last year. EPS came in at $0.34, compared to $0.17 in the year-ago quarter.The reported revenue represents a surprise of -0.34% over the Zacks Consensus Estimate of $1.15 billion. With the consensus EPS estimate being $0.28, the EPS surprise was +21.43%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Financial Data and Key Metrics Changes - First quarter revenue reached $1.1 billion, a record for the company, reflecting a 6% increase year-over-year, driven by a 7% increase in comparable sales growth [11][22] - Operating income was $78 million, representing a 76% increase from last year's adjusted operating income of $44 million, with an operating margin rise of 270 basis points to 6.8% [22][13] - Gross profit dollars increased by 12% to $464 million, with gross margin expanding by 240 basis points to 40.6%, marking the second highest rate since 2008 [22][13] Business Line Data and Key Metrics Changes - American Eagle brand saw an 8% revenue growth, fueled by a 7% increase in comparable sales, with notable strength in women's tops, dresses, skirts, and jeans [15][12] - Aerie achieved a record revenue quarter with a 4% increase year-over-year, driven by a 6% increase in comparable sales, while excluding swim, comps were up 11% [17][12] - The operating margin for Aerie increased by 70 basis points to 16.5%, with strong performance in corset dressing and Activewear [17][12] Market Data and Key Metrics Changes - The company reported strong growth across both digital and store channels, with digital revenue experiencing a double-digit increase [12][15] - Aerie's performance was impacted by swim trends, which were challenging in the spring season, but the brand remains confident in its growth trajectory [17][36] Company Strategy and Development Direction - The new strategic plan, "Powering Profitable Growth," aims for steady growth and an operating margin target of 10% by 2026 [8][9] - The company focuses on three strategic pillars: amplifying brands, optimizing operations, and executing with financial discipline [10][9] - Investments in brand awareness and assortment expansion are expected to drive future growth, particularly in the Activewear and soft dressing categories [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing a strong cash position and healthy balance sheet with $300 million in cash and no debt [13][22] - The company is on track to meet its full-year guidance for revenue and operating income, with expectations for continued momentum into the second quarter [13][28] - Management noted that the retail calendar shift positively impacted revenue, particularly in the back-to-school season [28][27] Other Important Information - The company returned approximately $60 million to shareholders through dividends and share repurchases [13] - Capital expenditures totaled $36 million, with expectations for full-year spending in the range of $200 million to $250 million [26] Q&A Session Summary Question: Current demand trends and confidence in comping - Management highlighted strong early trends in American Eagle, particularly in women's assortments, and expressed confidence in back-to-school offerings [31] Question: SG&A performance and outlook - SG&A for Q1 was in line with guidance, with expectations for mid-single-digit growth in Q2 and a plan for SG&A dollars to decrease in the back half of the year [32][50] Question: Impact of swim on Aerie's performance - Swim contributed a high single-digit impact on Aerie's performance in the first half, with expectations for improvement in the back half [36][17] Question: Channel sales performance - Aerie's comp was up 6%, with digital and store channels performing similarly, while American Eagle saw high-teens growth in digital [39] Question: Aerie intimates weakness and market trends - Intimates comprise about a third of Aerie's business, with management noting a pivot in customer preferences towards Activewear and sports bras [73][70]

Company Performance - American Eagle Outfitters (AEO) reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.17 per share a year ago, representing an earnings surprise of 21.43% [1] - The company posted revenues of $1.14 billion for the quarter ended April 2024, slightly missing the Zacks Consensus Estimate by 0.34%, compared to $1.08 billion in the same quarter last year [1] - Over the last four quarters, American Eagle has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [1] Stock Performance - American Eagle shares have increased approximately 13% since the beginning of the year, outperforming the S&P 500's gain of 11.2% [2] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $1.28 billion, and for the current fiscal year, it is $1.72 on revenues of $5.43 billion [4] Industry Outlook - The Retail - Apparel and Shoes industry, to which American Eagle belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [5] - Another company in the same industry, Zumiez, is expected to report a quarterly loss of $1.14 per share, reflecting a year-over-year change of -18.8%, with revenues anticipated to be $171.48 million, down 6.2% from the previous year [5][6]

Exhibit 99.1 AEO Inc. Reports First Quarter Fiscal 2024 Results Reflecting Strong Execution on Powering Profitable Growth Strategy May 29, 2024 PITTSBURGH -- (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the first quarter fiscal 2024 ended May 4, 2024. "Our strong first quarter results underscore the power of our iconic brand portfolio and demonstrate great progress on our Powering Profitable Growth strategy. We achieved record revenue, amplifying Americ ...

Core Insights - American Eagle Outfitters is experiencing gains in profitability while facing weaker-than-expected fiscal first-quarter sales, with revenue slightly below estimates but still marking a 6% increase year-over-year, reaching a record of $1.14 billion [1][2] - The company reported a significant increase in net income, nearly quadrupling to $67.8 million, or 34 cents per share, compared to $18.5 million, or 9 cents per share, a year earlier [1] Financial Performance - Revenue for the fiscal first quarter was $1.14 billion, up 6% from $1.08 billion a year earlier [2] - Earnings per share were reported at 34 cents, exceeding the expected 28 cents, while revenue fell short of the anticipated $1.15 billion [1] - The company expects full-year operating income between $445 million and $465 million, reflecting a revenue growth of 2% to 4% compared to the prior year, slightly below the estimated 3.4% [2] Strategic Initiatives - American Eagle is implementing a new strategy aimed at achieving annual sales growth of 3% to 5% over the next three years and increasing its operating margin to about 10% [3] - The company has improved its gross margin by 2.4 percentage points during the fiscal first quarter, attributed to better inventory management and reduced costs [3] Product and Store Revamp - The company is focusing on revamping its product assortment by reducing the number of SKUs to better meet customer demands [4] - American Eagle is also redesigning its stores to enhance customer experience, with new store formats reportedly performing better than the rest of the chain [5]

HONG KONG, CHINA - 2024/05/03: Pedestrians walk past the American clothing and accessories retailer ... [+] American Eagle store in Hong Kong. (Photo by Sebastian Ng/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesAmerican Eagle Outfitters (NYSE: AEO), which sells men’s and women’s apparel and accessories under the American Eagle, Tailgate, Todd Snyder, and Aerie brands, is scheduled to report its fiscal first-quarter results on Wednesday, May 29. We expect the stock to like ...

American Eagle Outfitters, Inc. (AEO) is expected to register top and bottom-line growth when it reports first-quarter fiscal 2024 results on May 29. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.2 billion, which indicates growth of 6.1% from the year-ago reported figure.The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 28 cents per share, suggesting 64.7% growth from the year-ago quarter's reported number. The Zacks Consensus Estimate for the to-be ...

American Eagle Outfitters (AEO) closed at $22.93 in the latest trading session, marking a +1.37% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.74%. Elsewhere, the Dow lost 1.53%, while the tech-heavy Nasdaq lost 0.39%.Shares of the teen clothing retailer have depreciated by 0.04% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.94% and the S&P 500's gain of 6.06%.Investors will be eagerly watching for the performance of ...