American Eagle Outfitters ( (AEO) ) has released its Q3 earnings. Here is a breakdown of the information American Eagle Outfitters presented to its investors.
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American Eagle Outfitters, Inc. is a leading global specialty retailer, renowned for its inclusive and authentic apparel brands, including American Eagle and Aerie, offering high-quality, casual, and timeless clothing. The company’s robust operations span across the United States, Canada, Mexico, and more than 30 countries via a network of licensed partners, complemented by a strong e-commerce presence.
In the third quarter of fiscal 2024, American Eagle Outfitters reported solid growth across its brands, driven by a strong back-to-school season. Despite a slight decline in total net revenue by 1% to $1.3 billion due to adverse retail calendar shifts, Aerie achieved a record third-quarter revenue, and American Eagle also saw a comparable sales increase.
Key financial highlights include an operating income of $106 million with an adjusted operating margin of 9.6%. The company successfully reduced selling, general and administrative expenses, leveraging lower compensation costs. American Eagle Outfitters returned approximately $24 million in cash dividends to shareholders and maintained healthy inventory levels.
Looking ahead, American Eagle Outfitters remains confident in achieving its long-term strategic objectives, despite potential challenges during non-peak periods. The company expects a modest increase in fourth-quarter comparable sales, with total revenue impacted by retail calendar shifts, positioning itself well for the holiday season.
