About American Eagle Outfitters, Inc. (AEO) today reported consolidated comparable sales were up 2% in the second quarter and sales and earnings per share were above management expectations.
About American Eagle Outfitters, Inc.
American Eagle Outfitters offers on-trend clothing, accessories and personal care products under its American Eagle Outfitters® and Aerie® brands in more than 1,000 stores in the United States, Canada, Mexico, China and Hong Kong, and in 190 international locations operated by licensees.
Second Quarter 2017 Results
Total Net revenue: UP 3% to $845 million
Consolidated comparable sales: UP 2% (following a 3% increase last year)
Gross profit: DOWN 4.2% to $294 million
Gross margin rate: DOWN 240 basis points to 34.9% to revenue primarily due to increased promotional activity
Selling, general and administrative expense: UP 2% to $204 million
Adjusted operating income: DOWN 27.5% to $50 million compared to $69 million last year with a rate of 6.0% to revenue compared to 8.3% last year.
EPS: DOWN 47.8% to $0.12 compared to EPS of $0.23 last year while
adjusted EPS: DOWN 17.4% to $0.19
Shareholder Returns, Cash
Total cash: DOWN 22.2% to $193 million
Over the past year, AEO returned $88 million in share buybacks, $90 million in dividends and invested $187 million in capital expenditures, resulting in a lower cash balance.
Inventory
Total ending inventories at cost: UP 3% to $433 million
Ending units: Flat
Average unit cost: UP 2%
Store Information
Opened 9 new Aerie locations, of which 7 were in new markets
Opened 6 new AE stores, with 2 in Mexico and 4 in the U.S.
Opened 9 international licensed stores and closed 3.
For the remainder of the year, the company plans to:
- > open another 5 AE stores and 5 Aerie stores in the U.S., Canada, and Mexico,
- > open 32 new international licensed stores
- > close a total of 25 to 40 stores
