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American Eagle's Q4FY16 EPS surges 17%
04 Mar '16
3 min read
For the fourth fiscal quarter ended January 30, 2016, American Eagle Outfitters reported EPS of $0.42, a 17 per cent surge from EPS from continuing operations of $0.36 for the comparable quarter last fiscal.
Total net revenue for the fourth quarter of fiscal 2016 rose 3 per cent to $1.11 billion from $1.07 billion recorded in the prior fiscal's fourth quarter.
According to an American Eagle press release, consolidated comparable sales grew 4 per cent, compared to flat comparable sales in the same quarter of previous fiscal.
Gross profit for the reporting quarter increased 3 per cent year on year to $388 million, while the gross margin rate remained flat at 35.1 per cent of revenue.
“A slight improvement in markdowns, favorable product costs and lower rent expense were offset by higher incentive costs,” the apparel retailer explained.
Selling, general and administrative (SG&A) expense of $233 million expanded 3 per cent from $227 million in the fiscal ago quarter and as a percentage of revenue, SG&A leveraged 10 basis points to 21.1 per cent.
Operating income for the quarter under review lifted 3 per cent to $116 million over $112 million the company posted in the fourth quarter of earlier fiscal, while operating margin remained flat at 10.5 per cent.
The tax rate was 27.9 per cent in the reporting period, as the result of income tax settlements, higher federal tax credits, and tax strategies.
American Eagle added that total merchandise inventories at the end of the fourth quarter increased 9 per cent to $305 million compared to $279 million last year, consistent with its guidance.
“The increase is primarily due to earlier receipts, as the company lapped last year's delays caused by the port slow down,” it observed.
For the full fiscal, capital expenditures totaled $153 million and for the next fiscal, the company expects capital expenditures to be in the range of $160 to $170 million.
The company ended the quarter with total cash of $260 million compared to $411 million last year and during the quarter; the company repurchased 14.6 million shares for $212 million.
The remaining authorisation under the current repurchase program is for 2.8 million shares, which expires on January 28, 2017.
CEO Jay Schottenstein said, “Initiatives to strengthen our merchandise and improve operational execution, fueled strong results in 2015.”
“The fourth quarter was a challenging period for the apparel industry due to a number of macro factors, despite this, we achieved sales growth and a modest increase in operating income,” he too added.
“Our focus in 2016 will center on continuous merchandise improvements, elevating our efforts on customer acquisition and optimising the strength of our operations and brands,” Schottenstein noted. (AR)
Total net revenue for the fourth quarter of fiscal 2016 rose 3 per cent to $1.11 billion from $1.07 billion recorded in the prior fiscal's fourth quarter.
According to an American Eagle press release, consolidated comparable sales grew 4 per cent, compared to flat comparable sales in the same quarter of previous fiscal.
Gross profit for the reporting quarter increased 3 per cent year on year to $388 million, while the gross margin rate remained flat at 35.1 per cent of revenue.
“A slight improvement in markdowns, favorable product costs and lower rent expense were offset by higher incentive costs,” the apparel retailer explained.
Selling, general and administrative (SG&A) expense of $233 million expanded 3 per cent from $227 million in the fiscal ago quarter and as a percentage of revenue, SG&A leveraged 10 basis points to 21.1 per cent.
Operating income for the quarter under review lifted 3 per cent to $116 million over $112 million the company posted in the fourth quarter of earlier fiscal, while operating margin remained flat at 10.5 per cent.
The tax rate was 27.9 per cent in the reporting period, as the result of income tax settlements, higher federal tax credits, and tax strategies.
American Eagle added that total merchandise inventories at the end of the fourth quarter increased 9 per cent to $305 million compared to $279 million last year, consistent with its guidance.
“The increase is primarily due to earlier receipts, as the company lapped last year's delays caused by the port slow down,” it observed.
For the full fiscal, capital expenditures totaled $153 million and for the next fiscal, the company expects capital expenditures to be in the range of $160 to $170 million.
The company ended the quarter with total cash of $260 million compared to $411 million last year and during the quarter; the company repurchased 14.6 million shares for $212 million.
The remaining authorisation under the current repurchase program is for 2.8 million shares, which expires on January 28, 2017.
CEO Jay Schottenstein said, “Initiatives to strengthen our merchandise and improve operational execution, fueled strong results in 2015.”
“The fourth quarter was a challenging period for the apparel industry due to a number of macro factors, despite this, we achieved sales growth and a modest increase in operating income,” he too added.
“Our focus in 2016 will center on continuous merchandise improvements, elevating our efforts on customer acquisition and optimising the strength of our operations and brands,” Schottenstein noted. (AR)
Fibre2Fashion News Desk – India
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