Capital Expenditures
For the first quarter, capital expenditures were $38 million, compared to $19 million last year. Of the first quarter capital expenditures, approximately $28 million related to new and remodeled stores. The balance of the capital expenditures related to distribution center, information technology and other home office projects. The company continues to expect capital expenditures in the range of $90 million to $100 million, with slightly more than half related to new and remodeled stores.
Additionally, during the quarter the company acquired $33 million of trademark assets to support international operations. These trademark assets will be utilized in entering new markets in order to expand the overall international presence.
Real Estate
In the first quarter, the company opened six 77kids, three AE and two aerie stores. In addition, the company remodeled 32 stores. Store closings in the first quarter consisted of one AE store. The company continues to expect fiscal 2011 total square footage to increase in the low single-digits.
Cash and Investments
The company ended the first quarter with total cash and investments of $611 million.
Future Outlook
The company currently expects second quarter EPS to be in a range of $0.10 to $0.13 per diluted share, compared to $0.13 per diluted share last year. Although it is early in the second quarter, sales have improved from the first quarter, reflecting better trends in key items. SG&A dollars are planned flat for the second quarter, with investments in new stores and advertising offset by continued expense savings.
For the year, the company continues to expect EPS to be similar to 2010 earnings from continuing operations of $1.02 per diluted share. SG&A expense is planned to increase in the low single-digits, with planned investments in new stores and advertising, partially offset by continued expense savings. Depreciation is expected to increase in the low single-digits for the year, and the effective tax rate is currently projected at 38%.
American Eagle Outfitters Inc
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