American Eagle Outfitters, Inc. (AEO) reported GAAP operating income of 4 million dollars for the fourth quarter compared to 0.5 million dollars for the same quarter last year. The company’s adjusted operating income was 106 million dollars compared to 77 million dollars in last year’s fourth quarter. Fourth-quarter GAAP EPS was 2 cents compared to 3 cents last year and adjusted EPS reached 39 cents this year compared to 37 cents last year.
Commenting on the results, Jay Schottenstein, AEO’s Executive Chairman of the board and Chief Executive Officer commented, “After an unprecedented year, we ended 2020 on a positive note, with fourth-quarter adjusted operating income up 38 percent, driven by strong margins across brands.”
Total net revenue decreased 22 million dollars or 2 percent to 1.29 billion dollars, while comparable sales declined 1 percent. Aerie revenue increased 25 percent to 337 million dollars and comparable sales increased 29 percent, while American Eagle revenue decreased 9 percent to 943 million dollars and comparable sales declined 8 percent. AEO’s digital revenue increased 35 percent and store revenue declined 20 percent. Aerie digital revenue rose 75 percent and AE increased 20 percent.
The company added that gross profit of 440 million rose 8 percent and gross margin of 34 percent expanded from 31 percent last year.
AEO’s board of directors has approved reinstating its quarterly cash dividend at 0.1375 cents per share.