Yahoo Finance

• Record Revenue: $5.3 billion, fueled by 4% comparable sales growth.

• Adjusted Operating Profit: $445 million, marking one of the strongest years in history.

• Fourth Quarter Operating Income: $142 million, the highest in over a decade.

• Full Year Cash Flow from Operations: Over $470 million.

• Shareholder Returns: Over $280 million returned through buybacks and dividends.

• Aerie Revenue: Crossed $1.7 billion in 2024.

• Fourth Quarter Revenue: $1.6 billion, down 4% year-over-year.

• Fourth Quarter Comparable Sales: Increased 3%.

• Fourth Quarter Gross Profit: $599 million with a rate of 37.3%.

• Fourth Quarter SG&A: Decreased 6%, leveraging 40 basis points.

• Fourth Quarter Earnings Per Share: $0.54.

• Ending Inventory Cost: Down 1% year-over-year.

• Full Year CapEx: $223 million.

• Share Repurchases: 9.5 million shares repurchased in 2024.

• Cash and Investments: Approximately $359 million at year-end.

• First Quarter Revenue Outlook: Expected decline in mid-single digits.

• Full Year Revenue Outlook: Expected to be down in the low single digits.

• Full Year Operating Income Outlook: $360 million to $375 million.

• 2025 Capital Expenditures: Expected to be approximately $300 million.

• Warning! GuruFocus has detected 6 Warning Signs with CMTL.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• American Eagle Outfitters Inc (NYSE:AEO) achieved record revenue of $5.3 billion in 2024, driven by a 4% comparable sales growth.

• The company reported an adjusted operating profit of $445 million, marking one of its strongest years in history.

• Aerie's revenue crossed $1.7 billion, with strong performance in soft apparel and activewear collections.

• American Eagle maintained its number 1 ranking in denim with its core customer base, achieving its sixth consecutive quarter of positive comp growth.

• The company returned over $280 million to shareholders through buybacks and dividends in 2024.

Negative Points

• 2025 has started off softer than anticipated due to a less robust consumer environment and cold weather.

• The company expects full-year revenue and operating income to be down relative to last year.

• Ongoing consumer uncertainty and changes in the operating landscape, including tariffs and a strong US dollar, pose challenges.

• First quarter revenue is expected to decline in the mid-single digits, with operating income projected to be between $20 million to $25 million.

• The company faces headwinds from higher markdown activity, tariffs, and BOW cost deleverage on the comp decline.

Q & A Highlights

Q: Can you provide insights on how stores in warmer areas performed compared to those affected by cold weather? A: Jennifer Foyle, President, Executive Creative Officer - AE, Aerie, noted that stores in warmer climates showed better performance, but the difference wasn't significant enough to impact the quarter's overall results. The company is only a third into the quarter, and there's still potential for improvement.