First quarter revenues up 6 percent at American Eagle Outfitters

First quarter net revenue at American Eagle Outfitters of 1.1 billion dollars rose 6 percent in the first quarter, while store revenue rose 4 percent and digital revenue increased 12 percent.

Aerie segment revenue of 373 million dollars rose 4 percent during the quarter, with comp sales up 6 percent, while American Eagle revenue of 725 million dollars increased 8 percent, with comp sales growing 7 percent.

“We achieved record revenue, amplifying American Eagle’s and Aerie’s leading market positions and opportunity in casual apparel. As I look forward, I remain confident in our ability to deliver on our plans for 2024 and beyond,” said Jay Schottenstein, AEO’s executive chairman and chief executive officer.

Gross profit for the quarter of 464 million dollars increased 12 percent during the quarter under review, reflecting a gross margin rate of 40.6 percent, expanding 240 basis points.

Operating income reached 78 million dollars compared to GAAP operating income of 23 million dollars and adjusted operating income of 44 million dollars last year. Compared to last year’s adjusted result, operating income increased 76% and the operating margin of 6.8 percent expanded 270 basis points.

First quarter diluted earnings per share were 34 cents.

For fiscal 2024, the company’s management continues to expect operating income in the range of 445 to 465 million dollars, reflecting revenue increase of 2 to 4 percent to last year.

For the second quarter, the company forecasts operating income in the range of 95 to 100 million dollars, up high-single digits, including an approximately 55 million dollars positive impact from the retail calendar shift.