American Eagle Outfitters Inc. has released financial results for the fourth quarter and end of fiscal 2021. The company brought in record-setting numbers across brands, allowing them to end fiscal 2021 on a strong note. AEO is even two years ahead of schedule with their structural transformation goals for 2023.
“2021 was a milestone year for AEO. We crossed $5 billion in revenue for the first time in company history, grew our active customer file to record highs and achieved our strongest profit result in well over a decade. We leveraged our healthy cash position to fuel Aerie’s growth and made key acquisitions, creating an industry-leading supply chain platform with significant long-term growth and profit potential. I’m incredibly proud of our associates and their outstanding performance in 2021, especially amidst ongoing macro challenges,” said Jay Schottenstein, AEO’s Chief Executive Officer.
Fourth Quarter 2021 Results:
- Total net revenue increased $216 million, or 17% to $1.51 billion, compared to $1.29 billion in the fourth quarter of 2020.
- Aerie revenue of $428 million rose 27% from fourth quarter 2020 building on 25% growth last year. American Eagle revenue of $1.04 billion rose 11% versus fourth quarter 2020 following a 9% decline last year.
- Consolidated store revenue increased 32%. Total digital revenue declined -3%.
- Gross profit of $489 million rose 11% from $440 million in the fourth quarter of 2020 and reflected a gross margin rate of 32.4% compared to 34.0% last year.
Fiscal Year 2021 Results:
- Total net revenue increased $1.3 billion, or 33% to $5.0 billion, compared to $3.8 billion in fiscal year 2020. Compared to the pre-pandemic fiscal year 2019 base, total net revenue increased 16%.
- Aerie revenue of $1.4 billion rose 39% from fiscal year 2020 on top of 24% growth last year. American Eagle revenue of $3.6 billion rose 30% versus fiscal year 2020 following a -21% decline last year. Compared to the pre-pandemic fiscal year 2019 base, Aerie revenue increased 72% and AE revenue increased 2%
- Reflecting migration back to stores, consolidated store revenue increased 53%.
- Gross profit of $2.0 billion rose 73% from $1.1 billion in fiscal 2020 and reflected a gross margin rate of 39.7% compared to 30.5% last year. Gross margin expansion was driven by strong product demand, higher full-priced sales, lower promotions, rent savings, customer delivery efficiencies and inventory optimization initiatives.
Based on the brand’s EOY results, data proves that customer migration has returned to stores, with store revenue increasing across the board. Q4 also shows a surge in brick-and-mortar sales, with digital revenue declining during the quarter.
“We entered 2022 a stronger company, supported by our powerful brands, a proven strategy, improved discipline and strategically advantaged operations. While the macro environment remains challenging and we are taking this into account in our plans for the year, we expect our results to still reflect meaningful progress versus prior years, setting a new base-line for profitability. As I look further out, I couldn’t be more excited as we build on our success and deliver returns to shareholders,” added Schottenstein.