American Eagle Outfitters posts 7% revenue growth in FY19

11 Mar '20

2 min read

Pic: American Eagle Outfitters

American Eagle Outfitters, a leading global specialty retailer offering on-trend clothing and personal care products, reported 6 per cent increase in its revenue to $1.31 billion in Q4 FY19 compared to same quarter prior year (Q4 FY18: $1.24 billion). For full FY19, ended on February 1, 2020, revenue grew 7 per cent from $4.0 billion in FY18 to $4.3 billion.

"Although we faced some challenges in 2019, we made good progress on our strategic growth pillars, posting record revenues. We saw strong customer engagement and positive traffic across brands and channels," Jay Schottenstein, AEO's chairman and chief executive officer, said in a press release.

By brand, American Eagle comparable sales decreased 3 per cent in Q4 FY19 compared to a 3 per cent increase last year. Aerie's comparable sales increased 26 per cent, following a 23 per cent increase last year, marking the 21st consecutive quarter of double-digit sales growth, as company reported.

Gross profit decreased 5 per cent to $408 million in the quarter compared to $431 million same quarter prior year. Selling, general and administrative (SG&A) expense of $287 million decreased slightly from $288 million in Q4 FY18.

"Aerie delivered exceptional growth, led by its unique brand positioning and strong customer connection, and has significant runway ahead. American Eagle saw growth in its signature jeans and bottoms categories, where we continue to gain meaningful market share," Schottenstein said.

Consolidated comparable sales increased 3 per cent in FY19, following an 8 per cent increase last year. American Eagle comparable sales were up slightly compared to a 5 per cent increase last year. Aerie's comparable sales increased 20 per cent, following a 29 per cent increase in 2018, as company reported.

Gross profit in the year increased 2 per cent to $1.52 billion. SG&A of $1.03 billion in FY19 increased 5 per cent from $981 million last year. Operating income of $233 million decreased from $337 million last year.

"Looking ahead, we are laser focused on areas of underperformance and strengthening profit margins. Product improvements, inventory management and gaining efficiencies are top priorities. Our healthy brands and strong balance sheet position us well to compete in today's market and we are excited to build upon our strengths and seize the many opportunities ahead for AEO," Schottenstein said.

Fibre2Fashion News Desk (JL)

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