-- Declares $0.50 Per Share Special Dividend and Extends 16 Million
Share Repurchase Authorization --
PITTSBURGH, Dec 02, 2010 (BUSINESS WIRE) --
American Eagle Outfitters, Inc. (NYSE: AEO) today announced the
following:
-
November sales increase of 2% to $272 million, with comparable store
sales flat for the month.
-
Fourth quarter earnings guidance of $0.43 to $0.46 per diluted share.
-
A $0.50 per share special cash dividend.
-
A regular quarterly cash dividend of $0.11 per share with accelerated
payment into December.
-
Extension of the company's 16 million share repurchase authorization,
through February 2, 2013.
November and Year-to-Date Sales
Total sales for the four weeks ended November 27, 2010 increased 2% to
$272 million, compared to $266 million for the four weeks ended November
28, 2009. Comparable store sales were flat for the month, compared to a
2% decrease for the same period last year.
Jim O'Donnell, chief executive officer, commented, "November sales
reflected a strong performance over Thanksgiving weekend, offsetting
some weakness during non-peak periods earlier in the month. Customers
are responding to our merchandise offering, and we are well-positioned
from an inventory perspective as we enter December."
Total sales for the year-to-date period ended November 27, 2010
increased 3% to $2.32 billion, compared to $2.25 billion for the same
period last year. Comparable store sales increased 1% for the
year-to-date period, compared to a 7% decrease for the same period last
year.
The company completed the closure of MARTIN+OSA during the second
quarter of 2010. Accordingly, MARTIN+OSA's total sales for the current
year-to-date period and all prior periods have been reclassified as
discontinued operations and are not included in the results from
continuing operations above.
To access the company's recorded monthly sales commentary, please dial
(866) 514-0390, or internationally dial (585) 267-8021.
Fourth Quarter EPS Guidance
The company is providing fourth quarter 2010 earnings guidance from
continuing operations of $0.43 to $0.46 per diluted share. Fourth
quarter guidance compares to earnings from continuing operations of
$0.38 per diluted share last year.
Special Dividend and Accelerated Regular Quarterly Dividend
The company's board of directors declared a $0.50 per share special cash
dividend. In addition, the board declared a regular quarterly cash
dividend of $0.11 per share, payment of which will be accelerated into
December. As such, a cash dividend of $0.61 per share will be payable on
December 27, 2010 to stockholders of record at the close of business on
December 13, 2010.
Extended Share Repurchase Program
The board of directors also voted to extend the company's current
repurchase authorization of 16 million shares through February 2, 2013.
Since 2005, the company has repurchased a total of 48.5 million shares
for $938 million, which includes 14 million shares repurchased in 2010.
Mr. O'Donnell stated, "The payment of a special cash dividend primarily
reflects the successful liquidation of auction rate securities, which
resulted in proceeds of $150 million during the third quarter and
brought our cash position at quarter-end to $631 million. The use of
this cash in no way impedes our ongoing investments in strategic growth.
Indeed, we are highly confident that our current initiatives will lead
to further improvements in profitability and cash flow. At the same
time, today's announcement demonstrates our commitment to enhance
shareholder value through execution of our business plan, cash dividends
and share repurchases."
American Eagle Outfitters, Inc., through its subsidiaries, ("AEO, Inc.")offers high-quality, on-trend clothing, accessories and personal
care products at affordable prices. The American Eagle Outfitters(R)
brand targets 15 to 25 year old girls and guys, with 937 stores in the
U.S. and Canada and online at www.ae.com.
aerie(R) by american eagle offers apparel and intimates
collections for the AE(R) girl, with 147 standalone stores in
the U.S. and Canada and online at www.aerie.com.
The latest brand, 77kids(R) by american eagle(R), is
available online at www.77kids.com,
as well as at nine stores across the nation. The 77kids brand offers
small sizes and great big style for kids 0-14. AE.COM(R), the
online home of the brands of AEO, Inc. ships to 76 countries worldwide.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: This release contains forward-looking statements, which
represent our expectations or beliefs concerning future events,
specifically regarding fourth quarter earnings, improvements in
profitability and cash flow. All forward-looking statements made by the
company involve material risks and uncertainties and are subject to
change based on factors beyond the company's control. Such factors
include, but are not limited to the risk that the company's fourth
quarter earnings expectations, improvements in profitability and cash
flow may not be achieved and the risks described in the Risk Factor
Section of the company's Form 10-K and Form 10-Q filed with the
Securities and Exchange Commission. Accordingly, the company's future
performance and financial results may differ materially from those
expressed or implied in any such forward-looking statements. The company
does not undertake to publicly update or revise its forward-looking
statements even if future changes make it clear that projected results
expressed or implied will not be realized.
SOURCE: American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc.
Judy Meehan, 412-432-3300