From CNBC:

American Eagle announced a growth strategy for the next three years, writing off $94 million in impairment charges related to its logistics branch Quiet Platform. Earnings beat expectations with 61 cents adjusted EPS and $1.68 billion in revenue. Sales were up 12% to $1.68 billion for the quarter. Shares closed 2% lower.

Despite a $98.3 million charge related to Quiet Platforms, American Eagle reported $6.32 million in net income. The company is expecting sales to be up in the mid-single digits for the current quarter. Looking ahead, American Eagle unveiled a plan to deliver mid-to-high teens annual operating income expansion over the next three years.

Finance chief Mike Mathias stated that the Quiet Platforms have benefited the brand’s overall profitability. The company plans to focus on financial discipline and optimizing operations to drive growth and long-term profit. American Eagle aims to amplify its brands, expand Aerie, and invest in activewear at its Offline banner to increase profits.

President and executive creative director Jennifer Foyle highlighted the company’s efforts to rebuild the brand over the past three years. American Eagle plans to gradually renovate its store fleet, focusing on new categories like Offline, which has outpaced Aerie’s growth in its early years. Foyle emphasized the brand’s focus on color, animation, and entertainment in the activewear business.



Read more at CNBC: American Eagle (AEO) earnings Q4 2023