Home / Knowledge / News / Apparel/Garments / Q1 demonstrates progress toward our goals – American Eagle CEO
Q1 demonstrates progress toward our goals – American Eagle CEO
27
May '10
American Eagle Outfitters, Inc. announced that earnings for the first quarter ended May 1, 2010 were $0.05 per diluted share, compared to $0.11 per diluted share last year. Adjusted earnings for the period were $0.17 per diluted share, excluding closing charges and an operating loss related to the MARTIN+OSA business of $0.12 per diluted share. This compares to adjusted earnings for the first quarter ended May 2, 2009 of $0.11 per diluted share, which excluded a tax benefit, a realized loss related to the sale of investment securities and an operating loss related to MARTIN+OSA, as outlined in the table which follows.

“The first quarter demonstrated progress toward our goals. We achieved higher sales and stronger profitability,” said Jim O'Donnell, chief executive officer. “We remain focused on our priority to deliver margin improvement and earnings growth, with the ultimate goal of reaching our mid-teen operating margin target.”

MARTIN+OSA Update
On March 9, 2010, the company announced plans to close its MARTIN+OSA concept, including all 28 stores and the online business. As of the end of the first quarter, the closure was proceeding within the range of financial estimates provided.

Included in the first quarter net operating loss for MARTIN+OSA were pre-tax charges of $5 million for severance and other employee-related charges, $2 million of inventory charges and a non-cash asset impairment charge of $18 million. The net loss for the quarter was $25 million or $0.12 per diluted share. The second quarter closing charges and operating loss is estimated to be approximately $26 million, net of tax, or $0.13 per diluted share.

Inventory
Total merchandise inventory at the end of the first quarter was $326 million, an increase of $47 million. On a cost per square foot basis, ending inventory increased 15%, following a 4% decline in inventory per foot at the end of the first quarter of 2009. The inventory position supports a year-round and in-stock denim strategy, which we begin to anniversary in the third quarter. As we initiate the changes in our buying and allocation process, second half inventories are planned down.

Capital Expenditures
For the first quarter, capital expenditures were $19 million compared to $35 million last year. 2010 capital expenditures are now expected to be in the range of $90 to $110 million, a $10 million reduction from our previous expectation, primarily due to a shift of new store openings into 2011.

Real Estate
In the first quarter, the company opened five AE stores, two aerie stores, completed the remodeling of three AE stores and closed five AE stores. For the year, we now expect to open 14 new AE stores, complete 25 to 35 AE store remodels and close an additional 10 to 20 AE stores. In addition, we plan to open nine new aerie stores and seven 77kids stores. As previously announced, we plan to close the 28 MARTIN+OSA stores. As a result, total gross square footage in 2010 is expected to be down 1-2% versus 2009.


Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

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

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search