Q2 2024 American Eagle Outfitters Inc Earnings Call Transcript
Key Points
- American Eagle Outfitters Inc (AEO) achieved a record revenue of $1.3 billion in the second quarter, marking the sixth consecutive quarter of record revenue.
- The company reported a 4% increase in comparable sales and an 8% total revenue increase for the quarter.
- Operating income grew by 55% year-over-year, demonstrating significant leverage in the cost base.
- Aerie achieved another record revenue result with comps increasing 4%, driven by strength in apparel and the Offline active sub-brand.
- The company exited the quarter with a strong balance sheet, holding $192 million in cash and no debt.
- The swim category underperformed, impacting Aerie's overall performance.
- The company noted a moderation in sales during July, which was an industry-wide trend.
- Despite strong performance, the company is cautious about the dynamic macro environment and the importance of inventory and expense discipline.
- There is an expected shift in revenue due to the retail calendar, which may impact quarterly comparisons.
- The company faces ongoing competitive pressures in the promotional environment, which could affect margins.
Greetings, and welcome to the American Eagle Outfitters second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded.
I would now like to turn the call over to Judy Meehan, Senior Vice President, Corporate Communications and Investor Relations. Thank you, Judy. You may begin.
Good morning, 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
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