For the fourth quarter, American Eagle Outfitters, Inc. (AEO) reported a total net revenue increase of 216 million dollars or 17 percent to 1.51 billion dollars.
Total net revenue for the full year increased 1.3 billion dollars or 33 percent to 5 billion dollars. Compared to the pre-pandemic fiscal year 2019 base, total net revenue increased 16 percent.
Commenting on the results, Jay Schottenstein, AEO’s executive chairman and chief executive officer, said: “We crossed 5 billion dollars in revenue for the first time in company history, grew our active customer file to record highs and achieved our strongest profit result in well over a decade. We leveraged our healthy cash position to fuel Aerie’s growth and made key acquisitions, creating an industry-leading supply chain platform with significant long-term growth and profit potential.”
AEO’s fourth quarter results
The company added that Aerie revenue of 428 million dollars, rose 27 percent from fourth quarter 2020 building on 25 percent growth last year. American Eagle revenue of 1.04 billion dollars rose 11 percent following a 9 percent decline last year.
Consolidated store revenue increased 32 percent, while total digital revenue declined 3 percent. Compared to the pre-pandemic fourth quarter 2019 base, store revenue increased 4 percent and digital revenue increased 31 percent.
Gross profit of 489 million dollars rose 11 percent and reflected a gross margin rate of 32.4 percent compared to 34 percent last year. Operating income was 80 million dollars and adjusted operating income was 92 million dollars.
The company said fourth quarter EPS was 25 cents and adjusted EPS was 35 cents.
Review of AEO’s FY21 results
Aerie full year revenue of 1.4 billion dollars rose 39 percent on top of 24 percent growth last year. American Eagle revenue of 3.6 billion dollars rose 30 percent following a 21 percent decline last year. Compared to the pre-pandemic fiscal year 2019 base, Aerie revenue increased 72 percent and AE revenue increased 2 percent.
Consolidated store revenue increased 53 percent and digital revenue increased 7 percent. Compared to the pre-pandemic fiscal year 2019 base, store revenue increased 3 percent and digital revenue increased 46 percent.
Gross profit of 2 billion dollars rose 73 percent and reflected a gross margin rate of 39.7 percent compared to 30.5 percent last year. Operating income was 591 million dollars and adjusted operating income was 603 million dollars. The company’s EPS for the year was 2.03 dollars and adjusted EPS was 2.19 dollars.
For the year ahead, the company expects operating profit to be in the range of 550 to 600 million dollars, compared to adjusted operating profit of 603 million dollars in 2021. Due largely to stimulus in the first half of 2021, which contributed to an extraordinary spring season, combined with continued freight pressures, AEO is forecasting an earnings decline in the first half, followed by a recovery in the second half.