Trending...
- One Night. One Encounter. A New Season Of Purpose
- We are Talker Study: 64% of AI Users Have Bought From a Brand AI Introduced, as The Invisible Shortlist Reshapes Brand Discovery
- Bountiful Bowl Aims to Raise $50,000 to Support Meals on Wheels of the Greater Lehigh Valley
PITTSBURGH--(BUSINESS WIRE)--After strong holiday sales, American Eagle Outfitters, Inc. (NYSE: AEO) is on track to achieve $600 million in operating income for fiscal 2021.
With a year of strong execution across the "Real Power. Real Growth." value creation plan, the company is on track to surpass its fiscal 2023 operating income and margin goals two years ahead of schedule. Building on this momentum, AEO is raising its 2023 financial targets. The plan will continue to focus on pursuing growth opportunities for Aerie's powerful brand platform through innovation, expanding deeper into key markets and growing its customer base. Having successfully driven significant and structural improvement in profitability at American Eagle, the brand will now pursue a dual agenda of modest growth and maintaining healthy profit flow-through.
AEO will continue to leverage its leading customer-focused and operational capabilities and maintain its ROI discipline, while building on the power of its people, culture and purpose.
"I am extremely proud of the team's outstanding execution throughout the past year, which has instilled real structural improvements within our company. Inventory and real-estate optimization combined with strong demand fueled by product improvements have reignited profitability at the American Eagle brand. Aerie cemented another year of industry-leading growth and achieved a substantial inflection in profitability as its powerful brand platform continued to scale. Operational excellence drove solid results amidst external disruptions. We closed out a milestone year for our supply chain, anchored by two key acquisitions, which secured cost efficiencies, locked in key strategic advantages and created a new platform for future growth," commented Jay Schottenstein, AEO's Executive Chairman of the Board and Chief Executive Officer. "As I look forward, I see tremendous growth potential and opportunities across the organization. I am excited to see us build on our successes as we strive to reach greater heights and create lasting value for our shareholders."
Fourth Quarter Outlook
Fueled by strong demand and positive pricing, AEO expects record fourth quarter revenue with growth in the mid-to-high teens compared to fourth quarter 2020, and up in the mid-teens from the fourth quarter of 2019. Operating income is expected to be in the range of $90 to $100 million including approximately $80 million in higher freight costs, due to supply chain disruptions as discussed in November. The fourth quarter profit outlook reflects significant progress and meaningful growth compared to the fourth quarter of 2019.
More on The PennZone
2023 Financial Outlook
AEO targets revenue of approximately $5.8 billion and operating income of $800 million in fiscal 2023, with the operating margin expanding to 13.5%. These targets exclude potential asset impairment and restructuring charges.
Aerie revenue is expected to reflect a high-20%'s compound annual growth rate to fiscal 2019, reaching approximately $2.2 billion and providing significant profit flow through. American Eagle revenue is expected to be up slightly to fiscal 2019, at approximately $3.6 billion, with improved profitability.
AEO's executive leadership team will discuss its new targets in detail in a fireside chat at the ICR Conference today at 1pm Eastern Time. The event can be accessed in the Investor Relations section on AEO's website, www.aeo-inc.com. A replay of the event will be archived and made available online on the company's website.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there's REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico, and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 200 international locations operated by licensees in 24 countries. For more information, please visit www.aeo-inc.com.
More on The PennZone
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent our expectations or beliefs concerning future events, including fourth quarter and annual fiscal 2021 results. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on many important factors, some of which may be beyond the company's control. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," "potential," and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 30, 2021 and in any other filings that we may make with the Securities and Exchange Commission in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results for the fourth quarter and fiscal 2021 and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the negative impacts of the COVID-19 pandemic and related operational disruptions; the risk that the company's operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity.
Contacts
Olivia Messina
412-432-3300
LineMedia@ae.com
With a year of strong execution across the "Real Power. Real Growth." value creation plan, the company is on track to surpass its fiscal 2023 operating income and margin goals two years ahead of schedule. Building on this momentum, AEO is raising its 2023 financial targets. The plan will continue to focus on pursuing growth opportunities for Aerie's powerful brand platform through innovation, expanding deeper into key markets and growing its customer base. Having successfully driven significant and structural improvement in profitability at American Eagle, the brand will now pursue a dual agenda of modest growth and maintaining healthy profit flow-through.
AEO will continue to leverage its leading customer-focused and operational capabilities and maintain its ROI discipline, while building on the power of its people, culture and purpose.
"I am extremely proud of the team's outstanding execution throughout the past year, which has instilled real structural improvements within our company. Inventory and real-estate optimization combined with strong demand fueled by product improvements have reignited profitability at the American Eagle brand. Aerie cemented another year of industry-leading growth and achieved a substantial inflection in profitability as its powerful brand platform continued to scale. Operational excellence drove solid results amidst external disruptions. We closed out a milestone year for our supply chain, anchored by two key acquisitions, which secured cost efficiencies, locked in key strategic advantages and created a new platform for future growth," commented Jay Schottenstein, AEO's Executive Chairman of the Board and Chief Executive Officer. "As I look forward, I see tremendous growth potential and opportunities across the organization. I am excited to see us build on our successes as we strive to reach greater heights and create lasting value for our shareholders."
Fourth Quarter Outlook
Fueled by strong demand and positive pricing, AEO expects record fourth quarter revenue with growth in the mid-to-high teens compared to fourth quarter 2020, and up in the mid-teens from the fourth quarter of 2019. Operating income is expected to be in the range of $90 to $100 million including approximately $80 million in higher freight costs, due to supply chain disruptions as discussed in November. The fourth quarter profit outlook reflects significant progress and meaningful growth compared to the fourth quarter of 2019.
More on The PennZone
- Bridging Canvas and Cosmos: How Bioengineer Farin DeBose Captured the Essence of "True Science"
- RPP to host first Professional Padel Week in Miami and announce the 2026 USA Awards winners
- UK Financial Ltd. Announces Maya Preferred PRA as First Fully Verified Asset on MAYA CHAIN; Chainlink Proof of Reserve Integration Planned for Network
- ALight Technology And Services Limited Advances Through Peachscore + Dealum Accelerator and Join LvlUp Labs
- NAO Releases Shopping Intelligence to Streamline Your Quest for Value
2023 Financial Outlook
AEO targets revenue of approximately $5.8 billion and operating income of $800 million in fiscal 2023, with the operating margin expanding to 13.5%. These targets exclude potential asset impairment and restructuring charges.
AEO Inc | Previous 2023 Targets | New 2023 Targets |
Revenue | $5.5 billion | $5.8 billion |
Operating Income | $550 million | $800 million |
Operating Margin | 10.0% | 13.5% |
Aerie revenue is expected to reflect a high-20%'s compound annual growth rate to fiscal 2019, reaching approximately $2.2 billion and providing significant profit flow through. American Eagle revenue is expected to be up slightly to fiscal 2019, at approximately $3.6 billion, with improved profitability.
AEO's executive leadership team will discuss its new targets in detail in a fireside chat at the ICR Conference today at 1pm Eastern Time. The event can be accessed in the Investor Relations section on AEO's website, www.aeo-inc.com. A replay of the event will be archived and made available online on the company's website.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there's REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico, and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 200 international locations operated by licensees in 24 countries. For more information, please visit www.aeo-inc.com.
More on The PennZone
- International Misophonia Foundation Launches Sensory Accessible Technology Initiative to Address Overlooked Digital Accessibility Barriers
- The Robert Travers Team of Long & Foster Marks 300+ Homes Sold, Expands Seller Representation
- CLINIMED Becomes First Liposuction Cannula Maker to Offer 3D and AR Models of Its Cannula Range
- RAS AP Consulting Advances 1099 Education and Readiness Initiative Through IFOL Training and Finance Technology Showcase
- Heritage at Manalapan Announces New 3.875% First-Year Mortgage Rate Buydown (7.11 APR)
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent our expectations or beliefs concerning future events, including fourth quarter and annual fiscal 2021 results. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on many important factors, some of which may be beyond the company's control. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," "potential," and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 30, 2021 and in any other filings that we may make with the Securities and Exchange Commission in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results for the fourth quarter and fiscal 2021 and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the negative impacts of the COVID-19 pandemic and related operational disruptions; the risk that the company's operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity.
Contacts
Olivia Messina
412-432-3300
LineMedia@ae.com
0 Comments
Latest on The PennZone
- Atlanta Company Launches Free, Ad-Free, Nonpartisan Voter Planning App for All 50 States Ahead of the Nov. 3 Election
- Pastor Carlton L. Aiken Sr. Celebrates 55 Years with "Sermonic Selections"
- J. Wes Seeks Jazz Musicians, Vocalists and Bands for Philadelphia Live Music Event
- NECP Promotes Chertova to Senior Business Analyst
- Security Industry Veteran Anthony Rumore Launches AegisLead to Help Security Companies Find Business and Manage Growth
- Charlie Shaw and Patrick Carragher win SEO Agency of the Year 2026
- Canadian Woman Plants 1,667 Love Stories in a Field of Peonies That Could Bloom for 100 Years
- New Research Spotlight, Expanding TUSC2 Science & Strategic Development Milestones Put Gene Therapy Innovation into Focus for Genprex (NAS DAQ: GNPX)
- Beyond the Odds: BetQL Combines Sharp Money Trends and Real Time Odds to Help Bettors Find Value
- Mark Schork and Terri Smith Honored by Philadelphia Bar Association as 'Bar Stars'
- WebDrafter Welcomes Dreamwork Exteriors as a New Marketing Client
- Glenn Lyvers Wins 2nd Place in Arizona State Poetry Society 2026 Annual Contest
- Access Control Security Shares 5 Ways Retailers Can Prevent Holiday Theft
- Bountiful Bowl Aims to Raise $50,000 to Support Meals on Wheels of the Greater Lehigh Valley
- Extreme Lead Program Highlights $27 Real Human Traffic Test for Affiliate and Network Marketers
- Longevity Academy Features Gail Humble, MD of KLOTHO SKIN in the Longevity Leaders Project
- Datavalet Named One of Quebec's Best Workplaces™ for 2026
- Phinge Corporation Engages Sheridan Ross PC for Certain Intellectual Property Matters
- Alan Hamilton of Shiver Hamilton Campbell Inducted as a Fellow of the American College of Trial Lawyers
- Slotozilla Hosts Exclusive Halloween Casino Bonuses for 2026