Home / Knowledge / News / Apparel/Garments / American Eagle reports EPS of $0.29 for Q2
American Eagle reports EPS of $0.29 for Q2
27
Aug '08
American Eagle Outfitters Inc announced that earnings for the 13 weeks ended August 2, 2008 decreased 22% to $0.29 per diluted share, compared to the 13 week period ended August 4, 2007.

“The second quarter financial results were not up to our standards,” said Jim O'Donnell, Chief Executive Officer. “While the consumer environment is clearly challenging, we are taking steps to invigorate our business. We are strengthening our competitive position by underscoring AE's value pricing, which is consistent with our heritage of great value together with excellent quality.

Additionally, we are driving improvements within our merchandise assortments. Yet, we are managing to the current macro environment, with tight inventories and we continue to pursue expense opportunities. As I look ahead to 2009 and beyond, I have tremendous confidence in the strength of our brands, our teams, and that we are positioning our company for improved financial performance, future growth and success.”

Second Quarter Results:
Total sales for the 13 weeks ended August 2, 2008 decreased 2% to $688.8 million compared to $703.2 million for the 13 week period ended August 4, 2007. Second quarter comparable store sales decreased 9%, compared to a 2% increase last year.

Gross profit for the second quarter was $289.4 million, or 42.0% as a rate to sales, compared to $316.4 million, or 45.0% as a rate to sales last year. Merchandise margin declined by 80 basis points. Buying, occupancy and warehousing costs increased by 220 basis points, due to de-leveraging in rent related to new store openings and the second quarter comparable store sales decline.

Selling, general and administrative expenses of $167.9 million increased to 24.4% as a rate to sales from $166.4 million, or 23.7% as a rate last year. The higher rate this quarter is primarily due to the comparable store sales decline. The company de-leveraged advertising. Nearly all other operating expenses were flat to last year as a rate to sales.

Operating income for the quarter was $89.4 million, compared to $122.7 million last year. The operating margin was 13.0%, compared to 17.4% last year.

The company's tax rate for the second quarter was 35.9%, compared to 38.1% last year. The lower effective rate was due to favorable state tax settlements.

The company generated net income during the second quarter of $59.8 million, compared to $81.3 million last year. As a percent to sales, net income was 8.7%, compared to 11.6% last year.

Inventory:
Total merchandise inventories at the end of the second quarter were $341.5 million, an increase of $20.2 million compared to last year. Inventory (excluding e-commerce) decreased 8% on a per square foot basis from a year ago.

Real Estate:
In the second quarter, the company opened 9 AE stores, 26 aerie stores and 1 MARTIN + OSA stores. In fiscal 2008, the company plans to open 36 AE stores, 77 aerie stores and 10 MARTIN + OSA stores. Together with approximately 31 AE store remodels, the company expects to grow square footage by approximately 12% in fiscal 2008.

Must ReadView All

Textiles | On 29th Mar 2017

'Increase in demand for organic designer linen'

There has been an increase in the demand for organic designer linen....

Apparel/Garments | On 29th Mar 2017

Jo-Ann launches 'Buy Online, Pick Up in Store' service

Jo-Ann Fabric and Craft Stores, a specialty retailer of crafts and...

Courtesy: Pratibha Syntex

Textiles | On 29th Mar 2017

Pratibha Syntex wins C&A's Best Global Supplier Award

Pratibha Syntex, a leading manufacturer and exporter of knitted...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search