American Eagle Outfitters, Inc. (AEO) total net revenue increased 148 million dollars or 17 percent to 1.03 billion dollars compared to the first quarter of 2019.
The company said, Aerie revenue increased 89 percent to 297 million dollars, while American Eagle revenue increased slightly to 728 million dollars. AEO’s digital revenue increased 57 percent, while store revenue was flat, due to Covid-19 related traffic pressure and store closures in Canada. US store revenue increased in the quarter.
“Our first quarter results were truly outstanding and reflected excellent progress on our “Real Power. Real Growth.” value creation plan in addition to favourable external factors. I believe we are on pace to deliver our 2023 operating profit target well ahead of schedule,” said Jay Schottenstein, AEO’s executive chairman of the board and chief executive officer.
Highlights of AEO’s Q1 results
The company’s gross profit for the quarter of 436 million dollars rose 34 percent from the first quarter of 2019 and gross margin expanded 550 basis points to 42.2 percent from 36.7 percent.
Operating income was 133 million dollars compared to 48 million dollars and adjusted operating income was 49 million dollars in the first quarter of 2019. On an adjusted basis, the operating margin expanded 730 basis points to 12.9 percent, the highest rate since 2007.
EPS was 46 cents this year compared to 23 cents in the first quarter of 2019. Adjusted EPS was 48 cents compared to adjusted EPS of 24 cents in first quarter of 2019.