Home / Knowledge / News / Apparel/Garments / American Eagle Outfitters' gross profit soars 10% in Q1
American Eagle Outfitters' gross profit soars 10% in Q1
02
Jun '18
Courtesy: American Eagle Outfitters
Courtesy: American Eagle Outfitters
The gross profit of American Eagle Outfitters in the first quarter of fiscal 2018 has increased 10 per cent to $304 million from $278 million. The gross margin rate increased to 37.0 per cent of revenue, compared to 36.5 per cent last year, reflecting rent leverage and a favourable markdown rate, partially offset by increased digital delivery expense.

For the reported period, the company's total net revenue went up 8 per cent to $823 million compared to $762 million last year. The consolidated comparable sales increased 9 per cent over the comparable period ending May 6, 2017.

Selling, general and administrative expense of $210 million leveraged to 25.5 per cent as a rate to revenue due to strong comparable sales. Higher store compensation and incentive expense drove the majority of the increase from $195 million last year.

In the first quarter, capital expenditures totaled $47 million, with more than half related to store re-modeling projects and new openings, and the balance to support the digital business, omni-channel tools and general corporate maintenance. Depreciation expense increased 4 per cent to $42 million from $40 million last year, leveraging to 5.1 per cent as a rate to revenue.

Operating income for the first quarter was $51 million, which included $1.6 million of restructuring charges, compared to $37 million last year. Adjusted operating income increased 23 per cent to $52 million from $42 million last year, leveraging to 6.4 per cent as a rate to revenue.

During the quarter, the company opened 4 American Eagle stores and closed 2, ending with 935 American Eagle stores, including 118 Aerie side-by-side locations. Additionally, the company opened 1 Aerie stand-alone store and closed 1, ending with 109 Aerie stand-alone stores. Internationally, the company ended the quarter with 217 licensed stores.

"I'm very pleased to see our momentum continue. The first quarter marked our 13th consecutive quarter of positive comparable sales, leading to an increased operating margin and earnings growth, which exceeded our expectations. American Eagle leveraged strong brand equity and its dominant jeans business to deliver comparable sales gains across brick and mortar stores and e-commerce. After starting a body positivity movement, Aerie is posting record growth rates and striking a real emotional connection with its expanding customer base. We are highly focused on our strategic plan, centered on expanding American Eagle, accelerating Aerie’s growth, elevating the customer experience and delivering strong financial returns," Jay Schottenstein, chief executive officer, said. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

FDI to be hit if EU withdraws GSP benefit to Myanmar: DICA

Apparel/Garments | On 13th Nov 2018

FDI to be hit if EU withdraws GSP benefit to Myanmar: DICA

Foreign direct investments (FDI) in Myanmar will be hit if the...

British luxury brands eye US market post Brexit

Fashion | On 13th Nov 2018

British luxury brands eye US market post Brexit

British luxury brands are exploring the US market to forge new and...

UK parliament panel asks fast fashion firms for answers

Apparel/Garments | On 13th Nov 2018

UK parliament panel asks fast fashion firms for answers

The Environmental Audit Committee in the United Kingdom has called on ...

Interviews View All

Sanjay Yagnik, Maa Tex Speciality

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Karan Toshniwal, Orange O Tec

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Top executives, Machinery Company

Top executives
Machinery Company

We will promote latest technologies at ITMA Barcelona

Shivani Swamy,

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Carmen Silla,

Carmen Silla

Leading the transformation of the textiles industry with disruptive...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

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

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

Leave your Comments


November 2018

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

news category


Related Categories:

Advanced Search