WARRENDALE, Pa., Feb 26, 2004 (BUSINESS WIRE) -- American Eagle Outfitters,
Inc. (Nasdaq:AEOS) today announced its consolidated financial results for the
fourth quarter and year ended January 31, 2004. The Company also stated that
consolidated February month-to-date comparable store sales have increased in the
mid-teens.
Fourth Quarter Ended January 31, 2004
-- Total sales increased 5.2% to $517.3 million from $491.6
million for the quarter ended February 1, 2003.
-- Sales for the fourth quarter 2003 included $26.7 million from
the Bluenotes/Thriftys operation, compared to $22.2 million
for the corresponding period last year.
-- Sales for the fourth quarter 2003 included $21.6 million from
the Company's Direct business, which includes our e-commerce
business as well as our catalog, compared to $18.9 million for
the corresponding period last year. (The Company's Direct
business is not included in our comparable store sales
calculation.)
-- Comparable store sales for the American Eagle Outfitters
stores declined 5.1% for the quarter ended January 31, 2004.
-- Consolidated comparable store sales, which include American
Eagle and Bluenotes/Thriftys stores, declined 4.7% when
compared to the corresponding period last year.
-- Reported net income for the quarter decreased to $35.4
million, or $0.49 per share on a diluted basis. Reported net
income includes a non-cash goodwill impairment charge of $6.1
million, or $0.08 per share on a diluted basis, related to
Bluenotes remaining goodwill.
-- Adjusted net income(a) for the quarter, which excludes a
non-cash goodwill impairment charge, increased to $41.5
million, or $0.57 per share on a diluted basis, from net
income of $38.9 million, or $0.54 per share on a diluted basis
last year.
Year-to-Date for the Twelve Months Ended January 31, 2004
-- Total sales increased 3.9% to $1.520 billion from $1.463
billion for the twelve months ended February 1, 2003.
-- Sales for the twelve months included $84.5 million from the
Bluenotes/Thriftys operation, compared to $80.2 million for
the corresponding period last year.
-- Sales for the twelve months included $54.6 million from the
Company's Direct business, which includes our e-commerce
business as well as our catalog, compared to $45.6 million for
the corresponding period last year. (The Company's Direct
business is not included in our comparable store sales
calculation.)
-- Comparable store sales for the American Eagle Outfitters
stores declined 6.6% when compared to the same twelve month
period last year.
-- Consolidated comparable store sales, which include American
Eagle and Bluenotes/Thriftys stores, declined 6.7% when
compared to the corresponding period last year.
-- Reported net income for the year-to-date period decreased to
$60.0 million, or $0.83 per share on a diluted basis. Reported
net income includes non-cash goodwill impairment charges of
$14.1 million, or $0.20 per share on a diluted basis.
-- Adjusted net income(a) for the year-to-date period, which
excludes non-cash goodwill impairment charges, decreased to
$74.1 million, or $1.03 per share on a diluted basis from net
income of $88.7 million, or $1.22 per share on a diluted basis
last year.
(a) A complete definition and discussion of the Company's use of non-GAAP
measures, identified by "(a)", is located below.
At 9:00 a.m. EST, on February 26, 2004, the Company's management team will host
a conference call to review the financial results. To listen to the call, dial
877-601-0864 at least ten minutes prior to the start of the call. The conference
call will also be simultaneously broadcast over the Internet at www.ae.com. A
replay will be available beginning February 26th at noon EST through March 9th.
To listen to the replay, dial 1-800-642-1687 and reference confirmation code
#4809611. An audio replay of the conference call will also be available at
www.ae.com until May 13, 2004.
American Eagle Outfitters (Nasdaq:AEOS) is a leading lifestyle retailer that
designs, markets, and sells its own brand of relaxed, casual clothing for 15 to
25 year olds, providing high-quality merchandise at affordable prices. AE's
collection includes modern basics like jeans, cargo pants, and graphic Ts as
well as a stylish assortment of cool accessories, outerwear and footwear. AE's
Canadian subsidiary, Bluenotes/Thriftys, targets a slightly younger demographic,
offering a more urban/suburban, denim-driven collection for 12 to 22 year-olds.
American Eagle Outfitters currently operates 740 AE stores in 49 states, the
District of Columbia and Puerto Rico, 65 AE stores in Canada, and 110
Bluenotes/Thriftys stores in Canada. AE also operates via its Web business,
www.ae.com, which offers additional sizes and styles of favorite AE merchandise.
Non-GAAP Measure Disclosure
The following definitions are provided for the two non-GAAP (Generally Accepted
Accounting Principles) measures used by the Company in this release. The two
measures are adjusted net income and adjusted diluted earnings per share. Each
use is indicated by "(a)". We do not intend for these two non-GAAP measures to
be considered in isolation or as a substitute for the related GAAP measures.
Other companies may define the measures differently.
Adjusted Financial Results
In this release, adjusted net income and adjusted diluted EPS each exclude the
non-cash goodwill impairment charges of $6.1 million, or $0.08 per share, and
$14.1 million or $0.20 per share, for the fourth quarter and year-to-date
periods ended January 31, 2004, respectively, related to our Bluenotes
operation. We believe that these adjusted measures provide investors with an
important perspective on the current underlying operating performance of our
businesses by isolating and excluding the impact of the non-cash impairment
charges related to our acquisition of the Bluenotes business in fiscal 2000.
-- Adjusted net income: In this release, we define "adjusted net
income" to start with GAAP net income and then add back the
$6.1 million and $14.1 million Bluenotes non-cash goodwill
impairment charges for the fourth quarter and year-to-date
periods ended January 31, 2004, respectively. The table below
shows a reconciliation between GAAP net income and adjusted
net income.
-- Adjusted diluted EPS: In this release, we define "adjusted
diluted EPS" to start with GAAP diluted EPS and then add back
the $0.08 per share and $0.20 per share Bluenotes non-cash
goodwill impairment charges for the fourth quarter and
year-to-date periods ended January 31, 2004, respectively. The
table below shows a reconciliation between GAAP diluted EPS
and adjusted diluted EPS.
Non-GAAP Financial Measures:
Reconciliation of GAAP Net Income and Diluted EPS to Adjusted Net
Income and Diluted EPS
Three Months Ended Twelve Months Ended
----------------------- -----------------------
January 31, February 1, January 31, February 1,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Reported GAAP
Net Income $ 35,354 $ 38,876 $ 60,000 $ 88,735
Non-Cash Goodwill
Impairment Charge 6,118 - 14,118 -
--------- --------- --------- ---------
Adjusted Net Income $ 41,472 $ 38,876 $ 74,118 $ 88,735
========= ========= ========= =========
Reported GAAP
Diluted EPS $ 0.49 $ 0.54 $ 0.83 $ 1.22
Non-Cash Goodwill
Impairment Charge 0.08 - 0.20 -
--------- --------- --------- ---------
Adjusted Diluted EPS $ 0.57 $ 0.54 $ 1.03 $ 1.22
========= ========= ========= =========
AMERICAN EAGLE OUTFITTERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
January 31, February 1,
2004 2003
----------- -----------
ASSETS
Cash, cash equivalents and
short-term investments $ 337,812 $ 241,573
Merchandise inventory 120,586 124,708
Other current assets 67,225 60,445
----------- -----------
Total current assets 525,623 426,726
----------- -----------
Property and equipment, net 278,689 267,479
Goodwill, net 10,136 23,614
Other assets, net 50,623 23,520
----------- -----------
Total Assets $ 865,071 $ 741,339
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 71,330 $ 50,608
Accrued compensation and payroll taxes 14,409 13,001
Accrued rent 30,985 28,476
Accrued income and other taxes 28,669 12,655
Unredeemed stored value cards and
gift certificates 25,785 22,837
Current portion of note payable 4,832 4,225
Other current liabilities 13,025 9,784
----------- -----------
Total current liabilities 189,035 141,586
----------- -----------
Note Payable 13,874 16,356
Other non-current liabilities 18,492 5,915
----------- -----------
Total non-current liabilities 32,366 22,271
----------- -----------
Total stockholders' equity 643,670 577,482
----------- -----------
Total Liabilities and Stockholders'
Equity $ 865,071 $ 741,339
=========== ===========
Current Ratio 2.78 3.01
AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars and shares in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
------------------------ ------------------------
January 31, February 1, January 31, February 1,
2004 2003 2004 2003
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Net sales $ 517,255 $ 491,554 $ 1,519,968 $ 1,463,141
Cost of sales,
including
certain buying,
occupancy and
warehousing
expenses 322,449 315,136 965,716 920,643
----------- ----------- ----------- -----------
Gross profit 194,806 176,418 554,252 542,498
Selling,
general and
administrative
expenses 112,875 101,614 379,289 350,752
Depreciation and
amortization 14,729 13,247 56,281 50,661
Goodwill
impairment loss 6,118 - 14,118 -
----------- ----------- ----------- -----------
Operating income 61,084 61,557 104,564 141,085
Other income, net 383 1,387 2,021 2,528
----------- ----------- ----------- -----------
Income before
income taxes 61,467 62,944 106,585 143,613
Provision for
income taxes 26,113 24,068 46,585 54,878
----------- ----------- ----------- -----------
Net income $ 35,354 $ 38,876 $ 60,000 $ 88,735
=========== =========== =========== ===========
Basic income
per common share $ 0.50 $ 0.55 $ 0.84 $ 1.24
Diluted income
per common share $ 0.49 $ 0.54 $ 0.83 $ 1.22
Weighted average
common shares
outstanding -
basic 71,179 71,132 71,113 71,709
Weighted average
common shares
outstanding -
diluted 72,251 72,034 72,207 72,783
------------------------------ ------------ ----------- ------------
Total gross square
footage at end of
period:
American Eagle
Outfitters Stores 4,239,497 3,817,442
Bluenotes/Thriftys
Stores 351,732 353,270
------------------------------ ------------ ----------- ------------
Store count at
end of period:
American Eagle
Outfitters Stores 805 753
Bluenotes/Thriftys
Stores 110 111
------------------------------ ------------ ----------- ------------
SOURCE: American Eagle Outfitters, Inc.
CONTACT: American Eagle Outfitters, Inc.
Laura Weil or Judy Meehan, 724-776-4857
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SOURCE: American Eagle Outfitters, Inc.