Clothing company American Eagle Outfitters (AEO) has reported an increase in total net revenue in fiscal 2024 (FY24), reaching $5.32bn, up 1% from $5.26bn in FY23).
The figure has accounted for an estimated $60m negative impact due to there being one fewer selling week.
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Comparable sales saw an uptick of 4%, building on 3% comp growth from the preceding year.
AEO owns apparel brands American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed.
Aerie’s comparable sales rose by 5%, albeit at a slower pace compared to 8% growth in the previous year, while American Eagle’s comparable sales grew 3%, an improvement on 2023’s 1% increase.
During the fiscal year ended 1 February 2025, AEO’s gross profit improved 3% to $2.08bn, with gross margin expanding to 39.2%.
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By GlobalDataThis was attributed to reduced expenses for rent, utilities and delivery, although this was partially offset by higher markdowns.
The company’s generally accepted accounting principles operating income stood at $427.30m with net income at $329.38m, resulting in diluted earnings per share of $1.68.
The company maintained its selling, general and administrative expenses at $1.43bn, consistent with the previous year and achieved a leverage of 30 basis points.
In the fourth quarter (Q4) of fiscal 2024, AEO reported a 3% increase in total comparable sales, following an 8% comp growth from the same period of the previous year.
However, total net revenue for the quarter saw a decline of 4% to $1.60bn, which included an $85m negative impact due to one fewer selling week and shifts in the retail calendar.
Aerie’s comparable sales continued to show strength with a 6% increase on top of the impressive 13% rise in 2023. American Eagle’s comparable sales experienced more modest growth of 1%, after a 6% increase in the previous year.
The quarter’s gross profit decreased to $599.17m from $614.58m in same quarter of the year before.
The company’s operating income experienced a marginal rise to $142.47m, reflecting an operating margin of 8.9%.
Net income of AEO was $104.34m in Q4 FY24, with diluted earnings per share at $0.54.
In the first quarter of fiscal 2025, AEO anticipates a mid-single-digit decline in revenue and projects operating income between $20m and $25m.
The company forecasted a low-single-digit revenue decline for the full fiscal year of 2025 with expected operating income ranging from $360m to $375m.
The fiscal year concluded with AEO operating a total of 1,172 stores across its portfolio.
