Home / Knowledge / News / Apparel/Garments / American Eagle Outfitters' revenue rises 14% in Q2FY18

American Eagle Outfitters' revenue rises 14% in Q2FY18

30
Aug '18
Courtesy: American Eagle Outfitters
Courtesy: American Eagle Outfitters
The net revenue of American Eagle Outfitters has increased $120 million, or 14 per cent to $965 million compared to $845 million during last year. Nearly $40 million of the revenue increase was with shifted retail calendar. Consolidated comparable sales rose 9 per cent over the period ending August 5, 2017, following a 2 per cent increase last year.

The company reported EPS of $0.34 for the quarter ended August 4, 2018, compared to $0.12 for the quarter ended July 29, 2017, up 183 per cent. EPS of $0.34 increased 79 per cent compared to adjusted EPS of $0.19 last year.

For the reported period, gross profit increased to $353 million from $293 million. Gross profit increased 20 per cent to $353 million from adjusted gross profit of $294 million last year. The gross margin rate increased to 36.6 per cent of revenue compared to adjusted 34.9 per cent last year, primarily reflecting rent leverage.

Selling, general and administrative expense of $234 million deleveraged to 24.3 per cent as a rate to revenue. Investments in customer-facing store payroll, higher wages, increased incentive expense and advertising contributed to the rise from $204 million last year.

Depreciation and amortisation expense increased 6 per cent to $43 million from $40 million last year, due to continued investments in our business. As a rate to revenue, depreciation leveraged to 4.4 per cent. The company posted an operating income of $76 million compared to $39 million last year, an increase of $37 million, or 95 per cent. Operating income increased 52 per cent to $76 million from adjusted operating income of $50 million last year, rising to 7.9 per cent as a rate to revenue.

"The second quarter results exceeded our expectations, delivering record sales and 79% growth in adjusted earnings. This marked our 14th consecutive quarter of comparable sales growth, with the American Eagle and Aerie brands posting positive results across both stores and e-commerce. Driven by exceptional product, teamwork and execution, it’s gratifying to see strength throughout our business, as we capitalize on the broad appeal of our brands and leading merchandise assortments," Jay Schottenstein, chief executive officer, said.

"We are pleased with the performance of the business through the back-to-school season with strength across brands and channels continuing. As we look forward, we remain focused on fueling our brands, delivering the best customer experiences and achieving strong financial returns," continued Schottenstein.

During the quarter, the company opened 4 American Eagle stores and had no closures, ending with 939 American Eagle stores, including 131 Aerie side-by-side locations. The company opened 1 Aerie stand-alone store and closed 1, ending with 109 Aerie stand-alone stores. Additionally, the company opened 1 Tailgate store. Internationally, the company ended the quarter with 223 licensed stores.

Based on an anticipated comparable sales increase in the high-single digits and total revenue growth in the mid-single digits, reflecting the approximate $40 million revenue shift into the second quarter due to the shifted retail calendar, management expects third quarter 2018 EPS to be approximately $0.45 to $0.47. This guidance excludes potential asset impairment and restructuring charges. Last year’s third quarter reported EPS of $0.36 included approximately $0.01 per share of restructuring and related charges. Excluding these items, last year’s third quarter adjusted EPS was $0.37. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

EU mulls imposing tariffs on Cambodian garments

Apparel/Garments | On 12th Nov 2018

EU mulls imposing tariffs on Cambodian garments

The European Union is mulling over imposing tariffs on Cambodian...

Courtesy: Lenzing

Textiles | On 12th Nov 2018

Lenzing reports solid result in FY18 first half

Lenzing's strategic orientation with a focus on specialty fibres has...

Courtesy: Invista

Textiles | On 12th Nov 2018

Invista’s Texas site sets adiponitrile production record

Invista’s site in Orange, Texas, has set a 12-month production record ...

Interviews View All

Frank Gossmann, Rotorcraft AG

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Top executives, Indian retail players

Top executives
Indian retail players

Walmart's acquisition of Flipkart endorses the humongous opportunities in...

Pratik Bachkaniwala, Palod Himson Machines

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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