Q1 2024 American Eagle Outfitters Inc Earnings Call Transcript
Key Points
- First quarter revenue of $1.1 billion set a new record for the company, driven by 7% comparable sales growth.
- American Eagle Outfitters Inc (AEO) saw significant growth across both digital and store channels.
- The company achieved a 76% increase in operating income compared to last year's adjusted operating income.
- Strong cash position with $300 million in cash and no debt, allowing for investments and shareholder returns.
- Gross margin expanded by 240 basis points to 40.6%, the second highest rate since 2008.
- Swim category underperformed, impacting Aerie's overall performance.
- Inventory levels were up 9% year-over-year, partly due to higher end-of-season merchandise.
- SG&A expenses increased by 7%, in line with sales growth, but still a point of concern for cost management.
- The company remains cautious about the back half of the year due to potential macroeconomic uncertainties.
- Aerie's total revenue growth lagged behind its comparable sales growth due to the impact of previous sell-off revenue.
Greetings, and welcome to the American Eagle Outfitters First Quarter 2024 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.
It's now my pleasure to introduce your host, Judy Meehan. Thank you. You may begin.
Good afternoon, everyone. Joining me today for our prepared remarks are Jay Schottenstein, Executive Chairman and Chief Executive Officer; Jen Foyle, President, Executive Creative Director for AE and Aerie; and Mike Mathias, Chief Financial Officer.
Before we begin today's call, I need to remind you that we will make certain forward-looking statements. These statements are based upon information that represents the company's current expectations or beliefs. The results actually realized may differ materially based on risk factors included in our SEC filings. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future
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