American Eagle Outfitters (AEO) investor relations material

Executive summary

• Achieved record first quarter revenue of $1.2 billion, up 10% year-over-year, with operating income of $28 million, exceeding guidance and reversing an $85 million loss last year.

• Aerie delivered exceptional growth, with revenue up 34% year-over-year and 25% comparable sales growth, surpassing $2 billion in trailing 12-month revenue.

• American Eagle saw a 2% sales decline, with men's performing well but women's bottoms underperforming.

• Gross profit rose 41% to $456 million, with gross margin expanding 860 basis points to 38.2%.

• Returned $74 million to shareholders in Q1 via $53 million in share repurchases and $21 million in dividends.

Financial highlights

• Net revenue: $1.2 billion, up 10% year-over-year; total comparable sales increased 8%.

• Operating profit: $28 million (2.4% margin) vs. $(85) million (-7.8%) last year.

• EPS for the quarter was $0.14, compared to $(0.36) last year.

• SG&A expenses rose 11% to $376 million, mainly due to higher advertising and compensation costs.

• Ending inventory at cost rose 27% to $817 million, with units up 5%.

Outlook and guidance

• Q2 comparable sales expected to grow mid to high single digits; Aerie and OFFLINE projected high teens to low twenties, AE flat to negative low single digits.

• Q2 operating income guidance: $45–$50 million, including a $20 million tariff headwind.

• Full-year operating profit expected at $390–$410 million, with mid-single-digit consolidated comp sales growth.

• CapEx for the year guided at $250–$260 million.

• Guidance assumes 10% tariff rate for Q2 receipts and 15% for the back half of the year.