Core Viewpoint - The ongoing tariff discussions are causing uncertainty among American investors, particularly regarding the potential impact on companies with significant exposure to China and other Asian countries [1][2]. Group 1: Company Exposure to Tariffs - Companies are facing a wide range of potential tariff outcomes, leading many retailers to frontload merchandise in anticipation of tariffs, which may not be sustainable in the long term [2]. - American Eagle Outfitters (AEO) has a significant reliance on Asian manufacturing, with 101 factories in China and 67 in Vietnam, making it vulnerable to tariff impacts [4]. - Levi Strauss & Co. also faces challenges due to its exposure to Asian countries, including China, Cambodia, and Vietnam, which puts it at the forefront of tariff discussions [6][10]. Group 2: Stock Performance and Valuation - American Eagle Outfitters is trading at a low P/E ratio of 9.14, with a forward P/E around 6x, and has a consensus price target of $15.50, indicating a potential 45% gain from its current price [3][4]. - Levi Strauss has a P/E ratio of 30.38 and a dividend yield of 3.29%, with a consensus price target of $19.18, suggesting a potential 21% upside [7][8]. - VF Corporation, which owns several well-known brands, has seen its stock performance decline due to multiple challenges, including a decrease in year-over-year revenue and significant exposure to tariffs, with a consensus price target of $21.70 indicating over 80% potential gain [10][11]. Group 3: Analyst Sentiment - Analysts have lowered price targets for VF Corporation, indicating a cautious outlook, while American Eagle and Levi Strauss are viewed as having attractive valuations despite their tariff exposure [11][12]. - The consensus rating for VF Corporation is currently a Hold, with top analysts suggesting alternative stocks may be better investment opportunities [12].

American Eagle Outfitters (AEO) closed the latest trading day at $11.04, indicating a -1.43% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.Shares of the teen clothing retailer have depreciated by 1.93% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.65% and the S&P 500's loss of 4.29%.The investment community will be ...

Financial Performance - Total net revenue increased by $67 million to $5.329 billion in Fiscal 2024 compared to $5.262 billion in Fiscal 2023[207] - Total comparable sales rose by 4%, with American Eagle increasing by 3% and Aerie by 5%[208] - Gross profit increased by 3% to $2.089 billion, with a gross margin of 39.2%, up 70 basis points from the previous year[211] - Operating income surged by 92% to $427.3 million, representing 8.0% of total revenue, an increase of 380 basis points[207] - Net income rose by 94% to $329.4 million, with diluted earnings per share increasing to $1.68 from $0.86[207] - Operating income for American Eagle was $606.5 million, a 1% increase from the previous year, while Aerie's operating income rose by 14% to $315.8 million[219] - Non-GAAP net income for Fiscal 2024 was $342.4 million, or $1.74 per diluted share, after adjusting for impairment and restructuring charges[230] - Total operating income increased by 92% to $427.3 million, driven by higher gross profit and lower impairment charges[219] Digital and Operational Improvements - Digital revenue grew by 5%, driven by increased transaction volume, while store revenue remained flat compared to Fiscal 2023[208] - The profit improvement program initiated in Fiscal 2023 contributed to margin expansion and improved operating profit rate for Fiscal 2024[204] - The company has invested in enhancing digital capabilities, focusing on mobile technology, digital marketing, and customer experience improvements[202] Expenses and Charges - Selling, general and administrative expenses decreased by $1 million year-over-year, improving by 30 basis points as a percentage of revenue[214] - Total impairment, restructuring, and other charges for Fiscal 2024 amounted to $141.7 million, representing 2.7% of net revenue[216] - The company recorded $10.7 million in employee severance related to corporate restructuring and $6.8 million in impairment costs from the sale of Hong Kong retail operations[215] - The company incurred $10.9 million in charges related to exiting the Japan market, including the closure of four stores and impairments in Hong Kong operations[233] - The company recorded $119.6 million in charges related to the Quiet Platforms restructuring, including impairments of $40.5 million in intangible assets and $39.6 million in goodwill[236] Cash Flow and Shareholder Returns - Cash flow and liquidity are expected to be sufficient to fund anticipated capital expenditures and working capital requirements for the next 12 months[199] - Total cash provided by operating activities decreased by $103.9 million from $580.7 million in Fiscal 2023 to $476.8 million in Fiscal 2024[238] - Capital expenditures for Fiscal 2024 totaled $222.5 million, with a projected increase to approximately $300 million for Fiscal 2025 to support expansion and technology upgrades[245] - The company repurchased 9.5 million shares during Fiscal 2024 under a new share repurchase program authorized for 30 million shares[250] - Cash returned to shareholders through dividends and share repurchases was $287.4 million in Fiscal 2024, compared to $104.1 million in Fiscal 2023[243] Tax and Depreciation - The effective tax rate for Fiscal 2024 was 25.5%, down from 29.1% in Fiscal 2023, primarily due to changes in non-deductible executive compensation[225] - Depreciation and amortization expense decreased by 6% to $212.3 million, primarily driven by prior year impairments of definite-lived tangible and intangible assets[218] - The effective tax rate for non-GAAP income was 23.6%, with a tax impact of $22.8 million related to restructuring charges[234] Liquidity and Financial Position - The current ratio as of February 1, 2025, was 1.53, indicating a strong liquidity position[238] - The company expects to fund future cash requirements through current cash holdings and available liquidity[237] Foreign Exchange and Other Comprehensive Loss - A hypothetical 10% adverse change in foreign exchange rates could result in a $25 million to $30 million fluctuation in foreign currency translation[274] - An unrealized loss of $40 million is included in accumulated other comprehensive loss, primarily due to fluctuations in the U.S. dollar against the Mexican peso and Canadian dollar[274] Goodwill and Share-Based Payments - The company evaluates goodwill for impairment at least annually, with potential charges recorded if carrying value exceeds fair value[264] - Share-based payments are valued using the Black-Scholes model and Monte-Carlo simulation, with assumptions impacting fair value estimates[265]

Financial Data and Key Metrics Changes - The company achieved record revenue of $5.3 billion, reflecting a 4% comparable sales growth [6][9] - Adjusted operating profit reached $445 million, marking a 19% increase from the previous year [27][28] - Fourth quarter operating income was $142 million, the highest in over a decade [8][28] - Full year cash flow from operations exceeded $470 million, with over $280 million returned to shareholders through buybacks and dividends [9][31] Business Line Data and Key Metrics Changes - American Eagle's comparable sales rose 1%, while Aerie's comparable sales increased by 6% [7][10] - Aerie crossed $1.7 billion in revenue, with strong performance in soft apparel and activewear [10][20] - Women's apparel saw high single-digit comps, while men's apparel showed sequential improvement [17][19] Market Data and Key Metrics Changes - The company noted that warmer markets performed better than colder ones, with specific categories like sweaters outperforming in colder climates [25][107] - The first quarter of 2025 is expected to see a mid-single-digit revenue decline due to a less robust consumer environment and cold weather [12][33] Company Strategy and Development Direction - The company launched the "Powering Profitable Growth" strategy, focusing on amplifying brands, optimizing operations, and executing with financial discipline [6][9] - There is a heightened emphasis on improving operating capabilities and building speed in the supply chain [11][32] - The company plans to increase share repurchase authorization, reflecting confidence in long-term growth prospects [14][31] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2025 has started off softer than anticipated, with ongoing consumer uncertainty and external factors like tariffs impacting operations [12][33] - The management remains optimistic about long-term growth opportunities despite current challenges [26][37] - The company is taking proactive actions to drive additional expense savings and improve top-line growth [13][32] Other Important Information - The company reported a strong balance sheet with approximately $359 million in cash and investments [31] - Capital expenditures for the year are expected to be around $300 million, including investments in digital platforms and automation [37] Q&A Session Summary Question: Differences in performance between warmer and colder markets - Management noted that warmer markets have seen better comps, but specific figures were not disclosed [40][42] Question: Control over SG&A expenses moving forward - Management expressed confidence in maintaining expense controls and leveraging SG&A for future growth [41][43][46] Question: Early spring selling trends and revenue outlook - Management acknowledged headwinds in early spring but emphasized readiness to adjust inventory and respond to market demands [49][51] Question: Gross margin outlook and assumptions - Management indicated that gross margin is expected to be down in the first quarter due to markdowns and product costs, with improvements anticipated in the second half [52][70] Question: Tariff exposure and mitigation strategies - Management reported a reduction in tariff exposure from China and Vietnam, with plans to further mitigate impacts [76][82] Question: Performance of digital and store channels - Digital channels outperformed stores in the fourth quarter, with plans for continued investment in both areas [102][104]

Financial Performance - Fourth quarter comparable sales growth of 3% and operating income of $142 million[1] - Fiscal year 2024 total net revenue of $5.3 billion, a 1% increase, with comparable sales growth of 4%[9] - Aerie comparable sales increased by 6%, while American Eagle comparable sales grew by 1% in fiscal year 2024[9] - Gross profit for fiscal year 2024 was $2.1 billion, with a gross margin of 39.2%[9] - Total net revenue for the fourth quarter ended February 1, 2025, was $1,604,633, a decrease of 4.4% from $1,678,910 in the same quarter of the previous year[27] - Operating income for the fiscal year ended February 1, 2025, was $427,303, representing 8.0% of total revenue, up from 4.2% ($222,717) in the previous fiscal year[29] - Net income for the fiscal year ended February 1, 2025, was $329,380, or 6.2% of total revenue, compared to $170,038, or 3.2% in the prior year[29] - Total net revenue for the fiscal year ended February 1, 2025, was $5,328,652, a slight increase from $5,261,770 in the previous year[29] Shareholder Returns - The company returned over $190 million to shareholders through share repurchases in 2024, with an additional 50 million shares authorized for repurchase[1][12] Expenses and Profitability - Selling, general and administrative expenses for fiscal year 2024 were approximately $1.4 billion, roughly in line with the previous year[9] - GAAP diluted earnings per share for fiscal year 2024 was $1.68, with adjusted diluted earnings per share at $1.74[9] - The company reported a diluted earnings per share of $1.68 for the fiscal year ended February 1, 2025, compared to $0.86 in the previous year[29] Inventory and Capital Expenditures - Total ending inventory decreased by 1% to $637 million, indicating a healthy inventory position for the Spring season[10] - Capital expenditures for fiscal year 2024 totaled $223 million, with expectations of approximately $300 million for 2025[14] Store Operations - The company opened 22 new AE Brand stores and 22 Aerie stores during the fiscal year, while closing 45 AE Brand stores and 13 Aerie stores[33] - Total consolidated stores remained stable at 1,172 at the end of the fiscal year, with 371 international license locations[33] Future Outlook - The first quarter of 2025 is expected to see a mid-single digit decline in revenue, while fiscal year 2025 anticipates a low-single digit decline[16] Taxation - The effective tax rate for the fiscal year ended February 1, 2025, was 25.5%[36] Gross Profit Margin - Gross profit margin improved to 37.3% in Q4 2025 from 36.6% in Q4 2024, with gross profit amounting to $599,175 compared to $614,586[27] Aerie Segment Performance - Aerie segment revenue for Q4 2025 was $539,673, showing a slight increase from $537,462 in Q4 2024[31]

Kroger (KR) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.79%. A quarter ago, it was expected that this supermarket chain would post earnings of $0.98 per share when it actually produced earnings of $0.98, delivering no surprise.Over the last four quarters, the company has surpass ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2024 was $1.3 billion, down 1% year-over-year, impacted by a $45 million headwind related to the retail calendar [34] - Adjusted operating income was $124 million, at the high end of guidance, with an adjusted operating margin of 9.6%, flat compared to last year [35][41] - SG&A expenses decreased by 3% quarter-over-quarter, leveraging 50 basis points as a rate of sales [37][38] - Ending inventory cost was up 5% year-over-year, indicating healthy positioning for the holiday season [39] Business Line Data and Key Metrics Changes - American Eagle achieved a 3% comparable sales increase, marking its sixth consecutive quarter of growth [26] - Aerie recorded a 5% comp growth, building on a 12% growth last year, with expectations for continued revenue growth [21][22] - Aerie's apparel category saw its seventh consecutive quarter of double-digit growth, particularly in Soft Dressing and Activewear [22][23] Market Data and Key Metrics Changes - The company experienced positive momentum across brands and channels, despite some demand choppiness [8] - The retail calendar shift and adverse weather conditions impacted sales performance, particularly in September and October [68][95] - The strengthening US Dollar has created currency pressure, particularly affecting the business in Mexico [86][88] Company Strategy and Development Direction - The company is focused on its "powering profitable growth" strategy, aiming for long-term growth and operational efficiency [7][8] - Strategic initiatives include amplifying brand presence, optimizing operations, and executing with financial discipline [12][14] - The company plans to open 45 new Aerie stores next year, significantly increasing its footprint compared to only four openings this year [51][140] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding fourth-quarter demand outlook, adjusting guidance to reflect potential challenges [17][43] - Positive customer response was noted during key selling periods, including Thanksgiving and Black Friday, with record store performance [42][112] - The company remains optimistic about its strategic direction and the potential for growth across its brands [30][41] Other Important Information - The company ended the quarter with $160 million in cash and no debt, maintaining a strong balance sheet [15][40] - Capital expenditures for the third quarter totaled $60 million, with full-year spending expected to be between $225 million and $245 million [39] Q&A Session Summary Question: Can you speak to the progression of demand into the fourth quarter at Aerie? - Management noted that Aerie saw record revenues in Q3 and is cautiously optimistic about new categories like sleep and swim for future growth [50][51] Question: What are your expectations for promotions in the fourth quarter? - The company plans to maintain similar promotional levels to last year, with inventory well-positioned across brands and categories [58][59] Question: Can you elaborate on the choppiness in demand? - Management attributed the choppiness to weather conditions and the retail calendar shift, but noted strong performance during peak periods [68][95] Question: How is the Intimates business performing? - The Intimates category is down industry-wide, but the company is holding its share and seeing improvements in demand trends [102][104] Question: What is the impact of the new administration on tariffs? - The company has flexible sourcing capabilities and is prepared to adapt to any changes in tariff policies [148][149] Question: What are the plans for store openings next year? - The company plans to open approximately 45 new Aerie and OFFLINE stores, while American Eagle may see a net closure of around 20 stores [155][161]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 2, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-33338 American Eagle Outfitters, Inc. (Exact name of registrant as specified in its charter) Delaware No. 13-2721761 (State or other jurisdiction of incorporation or organi ...

Exhibit 99.1 AEO Inc. Reports Third Quarter Growth Across Brands Reflecting Strong Execution on Powering Profitable Growth Plan • Aerie achieved all-time high third quarter revenue with comps up 5%, following 12% reported comp growth last year • American Eagle comps increased 3%, following 2% reported comp growth last year • Operating Income was $106 million. Adjusted Operating Income of $124 million reflected an Adjusted Operating Margin of 9.6% • Annual outlook updated; Remain on track to deliver mid-teen ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q EXCHANGE ACT OF 1934 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES For the quarterly period ended August 3, 2024 OR EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES Commission File Number: 1-33338 American Eagle Outfitters, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware No. 13-27 ...