The company’s Aerie brand stood out with a revenue increase of 12 per cent YoY, reaching $359 million. This was coupled with a 2-per cent YoY increase in comparable sales. On the other hand, the American Eagle brand experienced a slight dip with revenue falling by 2 per cent YoY to $671 million and comparable sales decreasing by 4 per cent YoY, the company said in a press release.
American Eagle Outfitters’ Q1 FY23 net revenue rose by 2 per cent to $1.1 billion, boosted by a 5-per cent increase in store sales, despite a 4-per cent decline in digital sales.
Aerie brand revenue grew by 12 per cent to $359 million, while American Eagle brand revenue fell by 2 per cent to $671 million.
Gross profit rose by 6 per cent to $413 million.
AEO’s gross profit also grew in Q1 FY23, rising 6 per cent to $413 million compared to $388 million in Q1 FY22. This improvement, which resulted in a gross margin rate of 38.2 per cent versus 36.8 per cent in the previous year, was driven by lower transportation costs and reduced compensation and delivery costs. However, the benefits were somewhat offset by increased markdowns and higher rent associated with new store openings.
Selling, general, and administrative expenses amounted to $312 million in Q1 FY23, marking a 5-per cent increase from the same period last year.
For the quarter, AEO reported a GAAP operating income of $23 million, while non-GAAP operating income stood at $44 million, reflecting a 4.1-per cent margin. The company reported a GAAP diluted EPS of $0.09, with the non-GAAP diluted EPS standing at $0.17 after excluding $0.08 of impairment and restructuring charges.
“We entered 2023 with a cautious plan, balancing continued optimism for our brands with the flexibility to navigate uncertainty in the macro environment. I am pleased to note that this strategy delivered for us, as we successfully managed through the first quarter and achieved results in-line with plan. Both Aerie and American Eagle saw solid improvement during the quarter and maintained strength in their categories,” said Jay Schottenstein, AEO’s executive chairman of the board and chief executive officer.
Fibre2Fashion News Desk (DP)
