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FY14 revenue and earnings decline at American Eagle Outfitters

By Prachi Singh

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Business |REPORT

American Eagle Outfitters has reported EPS from continuing operations of 0.36 dollars for the fourth quarter ended January 31, 2015, compared to adjusted EPS of 0.27 dollars for the comparable quarter last year, representing an increase of 33 percent. The company also announced adjusted EPS from continuing operations of 0.63 dollars for the year ended January 31, 2015, compared to adjusted EPS of 0.74 dollars for the year ended February 1, 2014, a 15 percent decrease.

Elaborating on the result, Jay Schottenstein, Interim CEO said, “We achieved a solid fourth quarter, exceeding our expectations. I believe we are very well positioned, with a top notch leadership team focused on the right priorities to strengthen our business and deliver profitable growth and returns to shareholders.”

Total net revenue for the fourth quarter increased 3 percent to 1.07 billion dollars from 1.04 billion dollars last year. Consolidated comparable sales were flat. Gross profit increased 13 percent to 376 million dollars and rose 320 basis points to 35.1 percent as a rate to revenue. Operating income increased 31 percent to 112 million dollars. The operating margin expanded 230 basis points to 10.5 percent as a rate to revenue.

Total net revenue for the fiscal year decreased 1 percent to 3.28 billion dollars from 3.31 billion dollars last year. Consolidated comparable sales decreased 5 percent over the same period last year. Gross profit increased 1 percent to 1.15 billion dollars and increased 60 basis points to 35.2 percent as a rate to revenue. Operating income decreased 11 percent to 207 million dollars. The operating margin decreased 80 basis points to 6.3 percent.

Based on a mid-single digit increase in comparable sales, management expects first quarter 2015 EPS to be approximately 0.09 dollars to 0.12 dollars, which includes the expected negative impact of 0.02 dollars per share due to the West Coast port slowdown.

American Eagle Outfitters