American Eagle improves performance by refining footprint and merchandise

American Eagle Outfitters didn’t exactly soar in the fourth quarter, but its low single-digit same-store sales increase was better than most and benefitted from recent store closures.



Total company sales increased 3% to $1.11 billion and same store sales grew 4% after a flat performance in the fourth quarter the prior year. Earnings per share increased 17% to 42 cents from the 36 cents earned from continuing operations the prior year. The company expects its first quarter same store sales to increase in the mid-single digits.



“Initiatives to strengthen our merchandise and improve operational execution fueled strong results in 2015. The American Eagle brand delivered solid growth and Aerie exceeded our expectations.” said Jay Schottenstein, CEO of American Eagle. “As broadly reported, the fourth quarter was a challenging period for the apparel industry due to a number of macro factors. Despite this, we achieved sales growth and a modest increase in operating income. We are encouraged that our spring season is off to a good start against positive results last year.”



Schottenstein said the company’s focus in 2016 will center on continuous merchandise improvements, elevating our efforts on customer acquisition and optimizing the strength of operations and brand.



“I’m confident in our ability to drive further growth and deliver shareholder returns,” he said.



The company’s plans also include an ongoing effort to streamline its store network. In the fourth quarter, the company closed 21 American Eagle stores and one Aerie store, while opening 15 licensed stores. Since the beginning of 2014, the company has closed 76 American Eagle stores and 26 Aerie stores as part of a goal to close a total of 150 stores by the end of this year.

Despite the closures, American Eagle maintains a sizable presence with more than 1,000 stores in the United States, Canada, Mexico, China, Hong Kong and the United Kingdom and another 141 international stores operated by licensees in 22 countries. The company is also active in cross-border e-commerce, shipping goods to 141.