The earnings call presented a mostly positive outlook for American Eagle Outfitters, with record revenue, strong performance from the Aerie brand, and digital growth contributing significantly to the positive sentiment. The company also showed improvement in operating income and gross margin, along with a strong balance sheet and raised income guidance. However, there were concerns over increased SG&A expenses and challenges in the AE men's category. Despite these challenges, the overall sentiment leans positive due to the significant achievements and strategic advancements.

Company Guidance

In the recent earnings call, American Eagle Outfitters (AEO) provided a comprehensive overview of its third-quarter 2023 performance and strategic guidance. The company reported record third-quarter revenue of $1.3 billion, with a 5% increase in comparable sales, demonstrating strong brand momentum. Aerie led with a notable 12% growth in revenue and comparable sales, while American Eagle saw a 2% increase in both metrics. Digital sales were a standout, growing 10% under the leadership of the new Head of Digital, David Zhang. The company achieved its second-highest third-quarter gross margin and operating income in over a decade, with a gross margin of 41.8%, up 310 basis points from the previous year. Operating income was $125 million, reflecting a 9.6% operating margin. AEO highlighted its commitment to inventory discipline and promotional strategies, which contributed to improved profit margins. Additionally, the company raised its full-year operating income guidance to between $340 million and $350 million, reflecting sustained growth and efficiency improvements. Looking ahead, AEO plans to continue strategic investments in its brands and supply chain, with new leadership appointments aimed at enhancing operational excellence.

Record Third Quarter Revenue

Third quarter revenue reached a record of $1.3 billion, driven by 5% comparable sales growth.

Aerie's Exceptional Performance

Aerie achieved 12% revenue and comparable sales growth, with profits expanding by 34%.

Digital Channel Growth

The digital channel grew by 10%, showing strong momentum and improved e-commerce performance.

Strong Operating Income

Operating income for the third quarter was $125 million, reflecting a 9.6% operating margin.

Gross Margin Expansion

Gross margin increased 310 basis points from last year, reaching 41.8%.

Healthy Balance Sheet

The company ended the quarter with $241 million in cash, nearly $900 million in total liquidity, and no debt.

Increased Full Year Operating Income Guidance

The full year operating income guidance was raised to the high end of the prior range, now expected between $340 million and $350 million.

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American Eagle (AEO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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AEO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 05, 2025	2024 (Q4)	0.49 / -	0.61	―	―	―
Dec 04, 2024	2024 (Q3)	0.47 / 0.48	0.49	-2.04% (-0.01)
Aug 29, 2024	2024 (Q2)	0.38 / 0.39	0.25	56.00% (+0.14)
May 29, 2024	2024 (Q1)	0.28 / 0.34	0.17	100.00% (+0.17)
Mar 07, 2024	2023 (Q4)	0.50 / 0.61	0.37	64.86% (+0.24)
Nov 21, 2023	2023 (Q3)	0.48 / 0.49	0.42	16.67% (+0.07)
Sep 06, 2023	2023 (Q2)	0.16 / 0.25	0.04	525.00% (+0.21)
May 24, 2023	2023 (Q1)	0.16 / 0.17	0.16	6.25% (+0.01)
Mar 01, 2023	2022 (Q4)	0.30 / 0.37	0.35	5.71% (+0.02)
Nov 22, 2022	2022 (Q3)	0.22 / 0.42	0.76	-44.74% (-0.34)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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AEO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 04, 2024	$20.54	$17.61	-14.26%
Aug 29, 2024	$21.57	$20.65	-4.27%
May 29, 2024	$23.76	$21.96	-7.58%
Mar 07, 2024	$23.04	$22.60	-1.91%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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