American Eagle Outfitters yearly revenues up 5%, Q4 comps lift 8%
Consolidated comparable sales for the 53 weeks increased 4 percent, said the American teen retailer.
The company’s comparable sales rose 8 percent in the fourth quarter ended Feb. 3. Net income rose to $93.96 million, or 52 cents per share, from $54.62 million, or 30 cents per share, a year earlier. Net revenue rose 12 percent to $1.23 billion from $1.10 billion, while the company’s online business witnessed double-digit growth in the quarter.
"The digital business continued its exceptional growth, rising over 20% in the quarter, and we were encouraged with improved brick and mortar trends, delivering positive sales comps in both American Eagle and Aerie stores," said Jay Schottenstein, AEO’s Chief Executive Officer, in a news statement.
Fourth-quarter net income rose 72 percent to $94 million, or 52 cents a diluted share, from $54.6 million, or 30 cents, a year ago. Adjusted EPS was 44 cents, which excludes 8 cents of tax benefit resulting from the change in US tax legislation in December.
The company said that gross profit rose to $425 million from $389 million. However, the gross margin rate fell 80 points to 34.6 percent of revenue, versus 35.4 percent a year ago. The reduced margin rate reflected higher promotional activity in the quarter, said the company.
“Looking ahead to 2018, our brands are well‐positioned for growth. American Eagle is a true leader in specialty apparel, with one of the strongest jeans brands in the market, and Aerie is one of the fastest growing lifestyle brands. We started the spring season with positive momentum, positioning us well for strong results in 2018. The dividend increase we announced today reflects confidence in our business, strong free cash flow and our continued commitment to delivering returns to shareholders,” said Schottenstein.
For the first quarter, the company said it expects comparable sales to rise in the mid-single digits and EPS in the 20 cents to 22 cents range.
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