American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the first quarter ended May 1, 2021. Due to the significant impact COVID-19 had on fiscal 2020 financial results, first quarter fiscal 2021 results are compared to the first quarter of fiscal 2019, which management believes is a more meaningful comparison.
“Our first quarter results were truly outstanding and reflected excellent progress on our “Real Power. Real Growth.” value creation plan in addition to favorable external factors. Demand for Aerie’s product and powerful brand platform continued at a rapid pace, which drove significantly higher sales, margins, and profitability,” said Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer.
First quarter 2021 compared to first quarter 2019:
- Business accelerated across brands, delivering all-time high first quarter revenue of $1.03 billion; and record operating income of $133 million, rising 177% from operating income of $48 million
- Strong full-priced sales fueled gross margin expansion of 550 basis points to 42.2%
- Aerie revenue rose 89%; operating income up 747% reflecting an operating margin of 23.5%
- American Eagle revenue up slightly; operating income up 39% reflecting an operating margin of 20.8%
“The American Eagle initiatives to reignite the brand, optimize inventory, and reduce promotions resulted in a meaningful recovery in margins, with more runway ahead. I am extremely pleased with how our teams are executing across all functions, from our customer-facing priorities through our supply chain initiatives. We have been well positioned to meet higher demand for our products and have excelled in managing all facets of our business. We remain poised for success, and our brands are stronger than ever. I believe we are on pace to deliver our 2023 operating profit target well ahead of schedule,” continued Schottenstein.
Source: American Eagle Outfitters IR, 2021-05-26
Photo Credit: American Eagle Outfitters IR
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 25 countries. For more information, please visit www.aeo-inc.com.