Total net revenue for fiscal 2024 (FY24) reached $5.32bn, a 1% rise from the $5.26bn reported in FY23. This growth includes an estimated $60m adverse impact attributed to one less week of sales.
The company observed a 4% rise in comparable sales, building upon a 3% comp growth from the previous year.
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AEO operates brands such as American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder, and Unsubscribed.
Specifically, Aerie’s comparable sales climbed by 5%, which represents a deceleration from the 8% growth seen in the prior year. Meanwhile, American Eagle brand’s comparable sales increased by 3%, which is an improvement from the 1% uptick in 2023.
AEO board executive chairman and chief executive officer Jay Schottenstein said: “2024 demonstrated significant progress on our Powering Profitable Growth Plan. The team delivered strong operating profit growth with positive momentum across our brands and channels as well as disciplined expense management and operating efficiencies.”
Fiscal year 2024 performance overview
AEO’s net income for the fiscal year was reported at $329.38m, a considerable increase from $170.03m in fiscal 2023. Earnings per diluted share were $1.68 in FY24 compared to $0.86 in FY23.
The operating income of AEO, as per generally accepted accounting principles (GAAP), reached $427.30m, rising from $222.71m in FY23.
Fourth quarter fiscal year 2024 highlights
AEO experienced a 3% rise in total comparable sales during the fourth quarter, following an 8% comp growth from the same period in the previous year.
However, total net revenue for the quarter declined by 4% to $1.60bn, which included an $85m negative impact due to one less selling week and shifts in the retail calendar.
Operating income for AEO edged up slightly to $142.47m in Q4 FY24, resulting in an operating margin of 8.9%. This figure includes an approximate $20m negative impact from one less selling week and retail calendar shifts.
Net income for AEO was reported at $104.34m for Q4 FY24, with diluted earnings per share at $0.54.
Outlook for first quarter and fiscal year 2025
“Entering 2025, the first quarter is off to a slower start than expected, reflecting less robust demand and colder weather. While we anticipate improvement as the spring season gets underway, we are also taking proactive steps to strengthen the top-line, manage inventory and reduce expenses. As we navigate through an uncertain consumer and operating landscape, we will also remain focused on our long-term strategic priorities,” Schottenstein said.
For the first quarter of fiscal year 2025, AEO expects a mid-single-digit decline in revenue and projects operating income to be between $20m and $25m.
For the full fiscal year of 2025, the company forecasts a low-single-digit decline in revenue with anticipated operating income ranging between $360m and $375m.
