American Eagle's Q1 2024 earnings show record high revenue and quadrupled net income.

From CNBC: 2024-05-29 19:02:30

American Eagle reported a 6% increase in revenue for the first quarter, hitting a record high. The company’s net income nearly quadrupled compared to the previous year. Despite these positive results, the stock fell 5% in extended trading. The company’s goal is to achieve 3-5% growth each year over the next three years.

The company is continuing to focus on boosting profitability through improvements in product assortment and operations. American Eagle is cautiously optimistic about the rest of the year due to upcoming challenges like interest rate decisions and the presidential election. The company is closely monitoring the back-to-school shopping season to gauge future performance.

American Eagle is expecting operating income in the range of $445 million to $465 million, slightly below estimates. The company’s efforts to revamp its product assortment and store formats are beginning to show positive results. Gross margin grew by 2.4 percentage points in the first quarter, driven by various cost-saving initiatives and better inventory management.

The company’s strategy includes removing underperforming items and focusing on categories that resonate with customers. American Eagle is also revamping its stores and introducing new designs, which have been well-received by customers. The company’s focus on denim business and women’s clothing has been particularly successful, with plans to expand to men’s clothing in the future.



Read more at CNBC: American Eagle (AEO) earnings Q1 2024