American Eagle revenue hits $5 billion
American Eagle Outfitters finished the year strong, fueled by continuing momentum of its Aerie brand.
The apparel retailer reported a profit of $50.4 million, or earnings per share of $0.25, for the fourth quarter, ended Jan. 29, compared with $3.5 million a year, or earnings per share of $0.02, in the year-ago period. earlier. Adjusted earnings per share were $0.35, topping analysts’ estimates of $0.30.
Total net revenue increased 17% to $1.51 billion. Aerie revenue rose 27% to $428 on top of 25% growth last year. American Eagle revenue rose 11% to $1.04 billion following a 9% decline last year.
Consolidated store revenue increased 32% in the quarter. Total digital revenue declined 3%. Compared to the pre-pandemic fourth quarter 2019 base, store revenue increased 4% and digital revenue increased 31%.
For the full year, American Eagle posted nearly $420 million in profits, compared with losses of $209 million a year earlier. Total net revenue increased 33% to $5.0 billion. Compared to the pre-pandemic fiscal year 2019 base, total net revenue increased 16%.
Aerie revenue soared 39% to $1.4 billion on top of 24% growth last year. American Eagle revenue rose 30% to $3.6 billion following a 21% decline last year. Compared to the pre-pandemic fiscal year 2019 base, Aerie revenue increased 72% and American Eagle revenue increased 2%.
“2021 was a milestone year for AEO,” stated executive chairman and CEO Jay Schottenstein. “We crossed $5 billion in revenue for the first time in company history, grew our active customer file to record highs and achieved our strongest profit result in well over a decade. We leveraged our healthy cash position to fuel Aerie’s growth and made key acquisitions, creating an industry-leading supply chain platform with significant long-term growth and profit potential.”
Total ending inventory at cost increased 37% to $553 million compared to $405 million last year. The increase was partially driven by elevated freight costs and product mix.
Total inventory units were up 14%. Additionally, ending inventory reflects earlier deliveries of spring shipments to ensure product availability during ongoing supply chain disruptions.
The company ended the period with total cash of $435 million following the purchase of Quiet Logistics and strategic investments in December 2021 for approximately $360 million.
Looking ahead, the retailer issued a conservative outlook, citing a number of “macro uncertainties.” For the full 2022 fiscal year, it expects operating profits to be in the range of $550 million to $600 million, compared with adjusted operating profits of $603 million in 2021.
“Due largely to stimulus in the first half of 2021, which contributed to an extraordinary Spring season, combined with continued freight pressures, we are forecasting an earnings decline in the first half, followed by a recovery in the second half as we lap elevated air freight due to factory closures and inventory flow challenges last year,” the company stated.
At the end of the quarter, American Eagle operated 1,133 stores, including 880 AE, 244 Aerie stand-alone, 197 Aerie side-by-side and five Todd Synder stores. It also operated 248 international license outlets.