American Eagle Outfitters, Inc. (AEO) Q3 2024 Earnings Call Transcript
Consolidated Revenue $1.3 billion, down 1% year-over-year due to a $45 million headwind related to the retail calendar.
Comparable Sales Increased 3%, following a 5% increase last year.
Operating Income $106 million, which included $18 million of impairment and restructuring costs. Adjusted operating income was $124 million, on the high end of guidance, with approximately $20 million headwind related to the shifted calendar.
Adjusted Operating Margin 9.6%, flat to last year.
Gross Profit Dollars $527 million, decreased 3% with a gross margin rate of 40.9%, compared to 41.8% last year.
SG&A Expenses Decreased 3% quarter-over-quarter, leveraging 50 basis points as a rate of sales.
Depreciation Down year-over-year, leveraging 40 basis points.
Tax Rate 26.1%, in line with guidance.
Adjusted Earnings Per Share $0.48 per share.
Ending Inventory Cost Up 5% year-over-year, positioned well for the holiday season.
Capital Expenditures (CapEx) Totaled $60 million for the quarter, bringing year-to-date investments to $158 million.
Shareholder Returns Approximately $24 million returned through cash dividends, bringing year-to-date returns through dividends and share repurchases to over $200 million.
Cash Position $160 million in cash and no debt.
Total Liquidity Over $800 million including the revolver.
Discover Tomorrow's Bullish Stocks Today
Analyst Views on AEO
About AEO
About the author
American Eagle Outfitters Officer Plans to Sell $6.32 Million in Common Stock via Form 144
Stock Sale Announcement: Officer Schottenstein of American Eagle Outfitters plans to sell 250,000 shares of the company's common stock.
Market Value: The total market value of the shares being sold is approximately $6.32 million.
Consumer Discretionary Stocks Show Strong Earnings Momentum, AENT and Others Rated A+
- Earnings Revision Ratings: Several mid-to-low cap consumer discretionary stocks, including Alliance Entertainment (AENT) and American Eagle Outfitters (AEO), have received an A+ earnings revision rating, indicating a significant increase in analysts' confidence regarding their profitability outlook, which may attract more investor interest.
- Market Appeal: The A+ ratings for these stocks reflect optimistic future earnings expectations from analysts, especially as the earnings season kicks off, potentially driving their stock prices higher and increasing market participation.
- Industry Performance: Companies like Century Communities (CCS), Crocs (CROX), and Cavco Industries (CVCO) also received A+ ratings, showcasing strong earnings momentum across the consumer discretionary sector, which may prompt investors to reassess the industry.
- ETF Focus: Consumer discretionary ETFs, such as XLY and VCR, may also gain attention due to the performance of these high-rated stocks, further driving capital inflows into the consumer sector and enhancing market activity.
