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American Eagle Outfitters Q1 net revenue decreased $335 million

Christian Fernsby ▼ | June 4, 2020
American Eagle Outfitters reported EPS of ($1.54) for the 13 weeks ended May 2, 2020.
American Eagle Outfitters
American Eagle Outfitters   Total net revenue decreased 8%
This compared to $0.23 for the Q1 2019.

Topics: American Eagle Outfitters

Adjusted EPS of ($0.84) this year excluded $0.70 of impairment and restructuring charges discussed below and compared to adjusted EPS of $0.24 last year, which excluded $0.01 of restructuring costs.

Total net revenue for the 13 weeks ended May 2, 2020 decreased $335 million, or 8% to $552 million compared to $886 million for the 13 weeks ended May 4, 2019.

By brand, American Eagle revenue decreased 45%, following a 5% increase last year. Aerie’s revenue decreased 2%, following a 28% increase last year.

The company’s digital demand, as measured by ordered sales, increased 33%. Aerie rose 75% and AE increased 15%. First quarter digital reported revenue was up 9%, reflecting strong demand, partly offset by temporary delays in fulfillment that led to higher than normal DC backlogs. The company has since reduced backlogs from mid-April peaks.

Gross profit of $28 million compared to $325 million last year. The gross margin rate of 5.1% compared to 36.7% last year. The gross profit dollar decline primarily reflected the reduction in store revenue, markdowns and promotions to clear through AE spring and summer goods, and $60 million in inventory provisions. The company also experienced buying, occupancy and warehousing pressure as a rate to revenue, due to the sales decline.

Selling, general and administrative expense of $188 million decreased $43 million from $231 million last year, primarily due to lower store operating expenses during closures.

Depreciation and amortization expense of $43 million decreased $2 million from $45 million last year.

Operating loss of $358 million compared to income of $48 million last year. Adjusted operating loss of $203 million this year excluded $156 million of impairment and restructuring charges and compared to adjusted operating income of $49 million last year, which excluded $1.5 million of restructuring charges.

EPS of ($1.54) compared to EPS of $0.23 last year. Adjusted EPS of ($0.84) excluded $0.70 of impairment and restructuring costs and compared to adjusted EPS of $0.24 last year, which excluded $0.01 of restructuring costs.


 

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