Comp Sales Rise 8% in Fourth Quarter and 4% in Fiscal Year
Strong Start to Spring Season
Raises Quarterly Dividend 10%
PITTSBURGH--(BUSINESS WIRE)--
American Eagle Outfitters, Inc. (NYSE:AEO) today reported EPS for the 14
weeks ended February 3, 2018 of $0.52, compared to $0.30 for the 13
weeks ended January 28, 2017. For the same periods, adjusted EPS was
$0.44, which excludes $0.08 of tax benefit discussed below. This
compares to adjusted EPS of $0.39 last year, which excluded $0.09 of
charges. Adjusted EPS for the quarter increased 13% compared to last
year.
For the 53 weeks ended February 3, 2018, the company reported EPS of
$1.13, compared to $1.16 for the 52 weeks ended January 28, 2017. For
the same periods, adjusted EPS of $1.16 excludes $0.08 of tax benefit
discussed below, and $0.11 of restructuring and related charges. This
compares to adjusted EPS of $1.25 last year, which excluded $0.09 of
charges. The EPS figures refer to diluted earnings per share.
Jay Schottenstein, AEO’s Chief Executive Officer, commented, “I’m
pleased that we ended 2017 with a strong quarter, achieving record sales
and an EPS increase over last year. In the fourth quarter we saw an
acceleration in sales, continued sequential margin improvement and EPS
growth that was on the high end of our guidance. The digital business
continued its exceptional growth, rising over 20% in the quarter, and we
were encouraged with improved brick and mortar trends, delivering
positive sales comps in both American Eagle and Aerie stores.”
“Looking ahead to 2018, our brands are well‐positioned for growth.
American Eagle is a true leader in specialty apparel, with one of the
strongest jeans brands in the market, and Aerie is one of the fastest
growing lifestyle brands. We started the spring season with positive
momentum, positioning us well for strong results in 2018. The dividend
increase we announced today reflects confidence in our business, strong
free cash flow and our continued commitment to delivering returns to
shareholders,” Schottenstein continued.
Adjusted amounts are based on Non-GAAP results, as presented in the
accompanying GAAP to Non-GAAP reconciliation.
Fourth Quarter 2017 Results
-
Total net revenue for the 14 weeks increased 12% to $1.23 billion
compared to $1.10 billion for the 13 week period last year.The
53rd week provided an additional $43 million of sales.
-
Consolidated comparable sales for the 14 weeks increased 8% over the
comparable 14 week period last year.
-
Gross profit increased to $425 million from $389 million. The gross
margin rate decreased 80 basis points to 34.6% of revenue compared to
35.4% last year. The reduction in margin rate reflects higher
promotional activity. Additionally, increased shipping costs and
higher compensation were offset by rent leverage.
-
Selling, general and administrative expense of $264 million leveraged
60 basis points to 21.5% as a rate to revenue. Increased store
salaries, due to a strong holiday season and the extra week, and
higher incentive compensation drove the dollar increase from $242
million last year.
-
Operating income of $116 million includes $2 million of restructuring
charges. Adjusted operating income increased 10% to $118 million from
$107 million last year, deleveraging 20 basis points to 9.6% as a rate
to revenue.
-
Adjusted EPS of $0.44 increased 13% compared to adjusted EPS of $0.39
last year.
Fiscal Year 2017 Results
-
Total net revenue for the 53 weeks increased 5% to $3.80 billion
compared to $3.61 billion for the 52 week period last year.
-
Consolidated comparable sales for the 53 weeks increased 4% over the
comparable 53 week period last year.
-
Gross profit was up slightly to $1.37 billion, or 36.1% as a rate to
revenue. Excluding $2 million of restructuring charges, adjusted gross
profit as a rate to revenue was 36.2% and deleveraged 170 basis points
to last year. The reduction in margin rate was primarily due to higher
promotional activity. Additionally, increased delivery to support a
strong digital business was offset by rent leverage.
-
Selling, general and administrative expense of $880 million leveraged
60 basis points to 23.2% as a rate to revenue. Increased salaries and
advertising expense drove the dollar increase from $858 million last
year.
-
Depreciation expense increased 7% to $167 million compared $157
million last year.
-
Operating income of $303 million includes $22 million of restructuring
and related charges. Adjusted operating income decreased 8% to $325
million from $353 million last year, deleveraging 120 basis points to
8.6%.
-
Adjusted EPS of $1.16 decreased 7% compared to adjusted EPS of $1.25
last year.
Income Taxes
As a result of U.S. tax legislation enacted on December 22, 2017
referred to as the Tax Cuts and Jobs Act, the company realized $0.08 per
share of tax benefit, which is excluded from adjusted earnings.
Specifically, these items relate to:
-
Benefit from a lower blended U.S. corporate tax rate in fiscal 2017.
-
Net benefit from the re-measurement of deferred tax balances and the
one-time transition tax on un-repatriated earnings of foreign
subsidiaries.
-
Benefit from the acceleration of certain deductions into fiscal 2017.
Restructuring and Related Charges
In the fiscal year, the company incurred restructuring and related
charges totaling $30 million, or approximately $0.11 per share. This
consisted primarily of charges related to the closure or conversion of
international owned and operated stores to licensed partnerships, home
office restructuring activities and charges related to the planned exit
of a joint business venture.
Inventory
Total ending inventories at cost increased 11% to $398 million,
reflecting investments in bottoms, women’s tops and Aerie apparel to
support strong sales trends.
Capital Expenditures
In 2017, capital expenditures totaled $169 million. For fiscal 2018, the
company expects capital expenditures to be in the range of $180 million
to $190 million, with more than half related to store remodeling
projects and new openings, and the balance to support the digital
business, omni-channel tools and general corporate maintenance.
Quarterly Dividend Increase, Shareholder Returns, and Cash
As a result of our strong cash position, positive free cash flow, and
the benefits associated with U.S. tax legislation, we are raising the
quarterly dividend 10%, to $0.1375 per share. This marks the company’s 55th
consecutive quarterly dividend. The $0.1375 dividend was declared on
March 7, 2018 and is payable on April 27, 2018 to stockholders of record
at the close of business on April 13, 2018.
During 2017, the company returned $176 million to shareholders through
cash dividends and share repurchases. We paid dividends of $89 million
and repurchased six million shares for $88 million. The company ended
the year with total cash of $414 million, an increase of $35 million
compared to the end of 2016.
Store Information
We ended the year with a total of 1,047 stores. During the year, the
company opened 15 AE stores and closed 25, ending the year with 933 AE
stores, which included 116 Aerie side-by-side locations. Additionally,
the company opened 15 Aerie stand alone stores and closed 8, ending the
year with 109 Aerie stand alone stores. Internationally, the company
ended the year with 214 licensed stores. For additional store
information, see the accompanying table.
First Quarter Outlook
Based on an anticipated comparable sales increase in the mid-single
digits, management expects first quarter 2018 EPS to be approximately
$0.20 to $0.22. This guidance excludes potential asset impairment and
restructuring charges. Last year’s first quarter reported EPS of $0.14
included approximately $0.02 per share of restructuring and related
charges. Excluding these items, last year’s first quarter adjusted EPS
was $0.16. See the accompanying table for the GAAP to Non-GAAP
reconciliation.
Conference Call and Supplemental Financial Information
Today, management will host a conference call and real time webcast at
9:00 a.m. Eastern Time. To listen to the call, dial 1-877-407-0789 or
internationally dial 1-201-689-8562 or go to http://investors.ae.com
to access the webcast and audio replay. Also, a financial results
presentation is posted on the company’s website.
Non-GAAP Measures
This press release includes information on non-GAAP financial measures
(“non-GAAP” or “adjusted”), including earnings per share information and
the consolidated results of operations excluding non-GAAP items. These
financial measures are not based on any standardized methodology
prescribed by U.S. generally accepted accounting principles (“GAAP”) and
are not necessarily comparable to similar measures presented by other
companies. Management believes that this non-GAAP information is useful
for an alternate presentation of the company’s performance, when
reviewed in conjunction with the company’s GAAP financial statements.
These amounts are not determined in accordance with GAAP and therefore,
should not be used exclusively in evaluating the company’s business and
operations.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global
specialty retailer offering high-quality, on-trend clothing, accessories
and personal care products at affordable prices under its American Eagle
Outfitters® and Aerie® brands. The company operates more than 1,000
stores in the United States, Canada, Mexico, China and Hong Kong, and
ships to 81 countries worldwide through its websites. American Eagle
Outfitters and Aerie merchandise also is available at more than 200
international locations operated by licensees in 25 countries. For more
information, please visit www.ae.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995
This release and related statements by management contain
forward-looking statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995), which represent our
expectations or beliefs concerning future events, including Fiscal 2018
results. All forward-looking statements made by the company involve
material risks and uncertainties and are subject to change based on many
important factors, some of which may be beyond the company’s control.
Words such as "estimate," "project," "plan," "believe," "expect,"
"anticipate," "intend," “potential,” and similar expressions may
identify forward-looking statements. Except as may be required by
applicable law, we undertake no obligation to publicly update or revise
any forward-looking statements whether as a result of new information,
future events or otherwise and even if experience or future changes make
it clear that any projected results expressed or implied therein will
not be realized. The following factors, in addition to the risks
disclosed in Item 1A., Risk Factors, of the company’s Annual Report on
Form 10-K for the fiscal year ended January 28, 2017 and in any
subsequently-filed Quarterly Reports on Form 10-Q filed with
the Securities and Exchange Commission in some cases have affected, and
in the future could affect, the company's financial performance and
could cause actual results for Fiscal 2018 and beyond to differ
materially from those expressed or implied in any of the forward-looking
statements included in this release or otherwise made by management: the
risk that the company’s operating, financial and capital plans may not
be achieved; our inability to anticipate customer demand and changing
fashion trends and to manage our inventory commensurately; seasonality
of our business; our inability to achieve planned store financial
performance; our inability to react to raw material cost, labor and
energy cost increases; our inability to gain market share in the face of
declining shopping center traffic; our inability to respond to changes
in e-commerce and leverage omni-channel demands; our inability to expand
internationally; difficulty with our international merchandise sourcing
strategies; challenges with information technology systems, including
safeguarding against security breaches; and changes in global economic
and financial conditions, and the resulting impact on consumer
confidence and consumer spending, as well as other changes in consumer
discretionary spending habits, which could have a material adverse
effect on our business, results of operations and liquidity.
|
|
|
AMERICAN EAGLE OUTFITTERS, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Dollars in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
February 3,
|
|
January 28,
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
413,613
|
|
$
|
378,613
|
|
|
Merchandise inventory
|
|
|
398,213
|
|
|
358,446
|
|
|
Accounts receivable, net
|
|
|
78,304
|
|
|
86,634
|
|
|
Prepaid expenses and other
|
|
|
78,400
|
|
|
77,536
|
|
|
Total current assets
|
|
|
968,530
|
|
|
901,229
|
|
|
Property and equipment, net
|
|
|
724,239
|
|
|
707,797
|
|
|
Intangible assets, net
|
|
|
46,666
|
|
|
49,373
|
|
|
Goodwill
|
|
|
15,070
|
|
|
14,887
|
|
|
Non-current deferred income taxes
|
|
|
9,344
|
|
|
49,250
|
|
|
Other assets
|
|
|
52,464
|
|
|
60,124
|
|
|
Total Assets
|
|
$
|
1,816,313
|
|
$
|
1,782,660
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
236,703
|
|
$
|
246,204
|
|
|
Accrued compensation and payroll taxes
|
|
|
54,324
|
|
|
54,184
|
|
|
Accrued rent
|
|
|
83,312
|
|
|
78,619
|
|
|
Accrued income and other taxes
|
|
|
12,781
|
|
|
12,220
|
|
|
Unredeemed gift cards and gift certificates
|
|
|
52,347
|
|
|
52,966
|
|
|
Current portion of deferred lease credits
|
|
|
11,203
|
|
|
12,780
|
|
|
Other current liabilities and accrued expenses
|
|
|
34,551
|
|
|
36,810
|
|
|
Total current liabilities
|
|
|
485,221
|
|
|
493,783
|
|
|
Deferred lease credits
|
|
|
47,977
|
|
|
45,114
|
|
|
Non-current accrued income taxes
|
|
|
7,269
|
|
|
4,537
|
|
|
Other non-current liabilities
|
|
|
29,055
|
|
|
34,657
|
|
|
Total non-current liabilities
|
|
|
84,301
|
|
|
84,308
|
|
|
Commitments and contingencies
|
|
|
-
|
|
|
-
|
|
|
Preferred stock
|
|
|
-
|
|
|
-
|
|
|
Common stock
|
|
|
2,496
|
|
|
2,496
|
|
|
Contributed capital
|
|
|
593,770
|
|
|
603,890
|
|
|
Accumulated other comprehensive loss
|
|
|
(30,795
|
)
|
|
(36,462
|
)
|
|
Retained earnings
|
|
|
1,883,592
|
|
|
1,775,775
|
|
|
Treasury stock
|
|
|
(1,202,272
|
)
|
|
(1,141,130
|
)
|
|
Total stockholders' equity
|
|
|
1,246,791
|
|
|
1,204,569
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
1,816,313
|
|
$
|
1,782,660
|
|
|
|
|
|
|
|
|
|
Current Ratio
|
|
|
2.00
|
|
|
1.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN EAGLE OUTFITTERS, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Dollars and shares in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basis
|
|
|
|
14 Weeks Ended
|
|
|
13 Weeks Ended
|
|
|
|
February 3,
|
|
% of
|
|
|
January 28,
|
|
% of
|
|
|
|
2018
|
|
Revenue
|
|
|
2017
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue
|
|
$
|
1,228,723
|
|
|
100.0
|
%
|
|
$
|
1,097,246
|
|
100.0
|
%
|
|
Cost of sales, including certain buying, occupancy and warehousing
expenses
|
|
|
803,603
|
|
|
65.4
|
%
|
|
|
708,744
|
|
64.6
|
%
|
|
Gross profit
|
|
|
425,120
|
|
|
34.6
|
%
|
|
|
388,502
|
|
35.4
|
%
|
|
Selling, general and administrative expenses
|
|
|
263,843
|
|
|
21.5
|
%
|
|
|
242,059
|
|
22.1
|
%
|
|
Impairment and restructuring charges
|
|
|
1,723
|
|
|
0.1
|
%
|
|
|
21,166
|
|
1.9
|
%
|
|
Depreciation and amortization
|
|
|
43,543
|
|
|
3.6
|
%
|
|
|
39,403
|
|
3.6
|
%
|
|
Operating income
|
|
|
116,011
|
|
|
9.4
|
%
|
|
|
85,874
|
|
7.8
|
%
|
|
Other income, net
|
|
|
3,959
|
|
|
0.3
|
%
|
|
|
1,382
|
|
0.1
|
%
|
|
Income before income taxes
|
|
|
119,970
|
|
|
9.7
|
%
|
|
|
87,256
|
|
7.9
|
%
|
|
Provision for income taxes
|
|
|
26,013
|
|
|
2.1
|
%
|
|
|
32,634
|
|
2.9
|
%
|
|
Net income
|
|
$
|
93,957
|
|
|
7.6
|
%
|
|
$
|
54,622
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per basic share
|
|
$
|
0.53
|
|
|
|
|
$
|
0.30
|
|
|
|
Net income per diluted share
|
|
$
|
0.52
|
|
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic
|
|
|
177,492
|
|
|
|
|
|
182,055
|
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
180,189
|
|
|
|
|
|
185,054
|
|
|
|
|
|
|
|
|
|
GAAP Basis
|
|
|
|
53 Weeks Ended
|
|
|
52 Weeks Ended
|
|
|
|
February 3,
|
|
% of
|
|
|
January 28,
|
|
% of
|
|
|
|
2018
|
|
Revenue
|
|
|
2017
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue
|
|
$
|
3,795,549
|
|
|
100.0
|
%
|
|
$
|
3,609,865
|
|
100.0
|
%
|
|
Cost of sales, including certain buying, occupancy and warehousing
expenses
|
|
|
2,425,044
|
|
|
63.9
|
%
|
|
|
2,242,938
|
|
62.1
|
%
|
|
Gross profit
|
|
|
1,370,505
|
|
|
36.1
|
%
|
|
|
1,366,927
|
|
37.9
|
%
|
|
Selling, general and administrative expenses
|
|
|
879,685
|
|
|
23.2
|
%
|
|
|
857,562
|
|
23.8
|
%
|
|
Impairment and restructuring charges
|
|
|
20,611
|
|
|
0.5
|
%
|
|
|
21,166
|
|
0.6
|
%
|
|
Depreciation and amortization
|
|
|
167,421
|
|
|
4.4
|
%
|
|
|
156,723
|
|
4.3
|
%
|
|
Operating income
|
|
|
302,788
|
|
|
8.0
|
%
|
|
|
331,476
|
|
9.2
|
%
|
|
Other (expense) income, net
|
|
|
(15,615
|
)
|
|
-0.4
|
%
|
|
|
3,786
|
|
0.1
|
%
|
|
Income before income taxes
|
|
|
287,173
|
|
|
7.6
|
%
|
|
|
335,262
|
|
9.3
|
%
|
|
Provision for income taxes
|
|
|
83,010
|
|
|
2.2
|
%
|
|
|
122,813
|
|
3.4
|
%
|
|
Net income
|
|
$
|
204,163
|
|
|
5.4
|
%
|
|
$
|
212,449
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per basic share
|
|
$
|
1.15
|
|
|
|
|
$
|
1.17
|
|
|
|
Net income per diluted share
|
|
$
|
1.13
|
|
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic
|
|
|
177,938
|
|
|
|
|
|
181,429
|
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
180,156
|
|
|
|
|
|
183,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN EAGLE OUTFITTERS, INC.
|
|
GAAP TO NON-GAAP RECONCILIATION
|
|
(Dollars in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
14 Weeks Ended
|
|
|
February 3, 2018
|
|
|
|
|
|
|
|
|
Diluted income
|
|
|
Operating
|
|
|
|
|
|
per common
|
|
|
income
|
|
Other income
|
|
Net income
|
|
share
|
|
GAAP Basis
|
|
$
|
116,011
|
|
|
$
|
3,959
|
|
|
$
|
93,957
|
|
|
$
|
0.52
|
|
|
% of Revenue
|
|
|
9.4
|
%
|
|
|
0.3
|
%
|
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Restructuring Charges(1): |
|
|
1,723
|
|
|
|
-
|
|
|
|
1,073
|
|
|
|
0.00
|
|
|
Less: Joint Business Venture Charges(2): |
|
|
-
|
|
|
|
(1,347
|
)
|
|
|
(839
|
)
|
|
|
(0.00
|
)
|
|
Less: U.S. Tax Reform Impact (3): |
|
|
-
|
|
|
|
-
|
|
|
|
(14,948
|
)
|
|
|
(0.08
|
)
|
|
|
|
1,723
|
|
|
|
(1,347
|
)
|
|
|
(14,714
|
)
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Basis
|
|
$
|
117,734
|
|
|
$
|
2,612
|
|
|
$
|
79,243
|
|
|
$
|
0.44
|
|
|
% of Revenue
|
|
|
9.6
|
%
|
|
|
0.2
|
%
|
|
|
6.4
|
%
|
|
|
|
(1)
|
|
-
|
|
$1.7 million pre-tax charges, for corporate and international
restructuring.
|
|
(2)
|
|
-
|
|
$1.3 million pre-tax benefit related to the exit of a joint
business venture, recorded within Other income, net.
|
|
(3)
|
|
-
|
|
$14.9 million of after-tax benefit resulting from the estimated
impact of U.S. tax legislation enacted on December 22, 2017,
referred to as the Tax Cuts and Jobs Act and related actions,
specifically:
• The benefit of a lower blended U.S. corporate tax rate
in fiscal 2017
• The net benefit from the re-measurement of deferred tax
balances and the one-time transition tax on un-repatriated earnings
of foreign subsidiaries
• The acceleration of certain deductions into fiscal 2017
|
|
|
|
|
|
|
|
|
|
AMERICAN EAGLE OUTFITTERS, INC.
|
|
GAAP TO NON-GAAP RECONCILIATION
|
|
(Dollars in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53 Weeks Ended
|
|
|
February 3, 2018
|
|
|
|
|
|
|
Other
|
|
|
|
Diluted income
|
|
|
|
|
Operating
|
|
(expense)
|
|
|
|
per common
|
|
|
Gross profit
|
|
income
|
|
income
|
|
Net income
|
|
share
|
|
GAAP Basis
|
|
$
|
1,370,505
|
|
|
$
|
302,788
|
|
|
$
|
(15,615
|
)
|
|
$
|
204,163
|
|
|
$
|
1.13
|
|
|
% of Revenue
|
|
|
36.1
|
%
|
|
|
8.0
|
%
|
|
|
-0.4
|
%
|
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Restructuring Charges(1): |
|
|
1,669
|
|
|
|
22,280
|
|
|
|
-
|
|
|
|
14,034
|
|
|
|
0.08
|
|
|
Add: Joint Business Venture Charges(2): |
|
|
-
|
|
|
|
-
|
|
|
|
7,964
|
|
|
|
5,031
|
|
|
|
0.03
|
|
|
Less: U.S. Tax Reform Impact (3): |
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,948
|
)
|
|
|
(0.08
|
)
|
|
|
|
1,669
|
|
|
|
22,280
|
|
|
|
7,964
|
|
|
|
4,117
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Basis
|
|
$
|
1,372,174
|
|
|
$
|
325,068
|
|
|
$
|
(7,651
|
)
|
|
$
|
208,280
|
|
|
$
|
1.16
|
|
|
% of Revenue
|
|
|
36.2
|
%
|
|
|
8.6
|
%
|
|
|
-0.2
|
%
|
|
|
5.5
|
%
|
|
|
|
(1)
|
|
-
|
|
$22.3 million pre-tax restructuring charges, consisting of:
• Inventory charges related to the restructuring of the United
Kingdom, Hong Kong, and China ($1.7M), recorded as a reduction of
Gross Profit
• Lease buyouts, store closure charges and severance and related
charges ($20.6M), which includes charges for the United Kingdom,
Hong Kong, and China and corporate overhead reductions, recorded
within Restructuring Charges.
|
|
(2)
|
|
-
|
|
$8.0 million of net pre-tax charges related to the exit of a joint
business venture, recorded within Other (expense) income, net.
|
|
(3)
|
|
-
|
|
$14.9 million of after-tax benefit resulting from the estimated
impact of U.S. tax legislation enacted on December 22, 2017,
referred to as the Tax Cuts and Jobs Act and related actions,
specifically:
• The benefit of a lower blended U.S. corporate tax rate in fiscal
2017
• The net benefit from the re-measurement of deferred tax balances
and the one-time transition tax on un-repatriated earnings
of foreign subsidiaries
• The acceleration of certain deductions into fiscal 2017
|
|
|
|
|
|
|
|
|
AMERICAN EAGLE OUTFITTERS, INC.
|
|
GAAP TO NON-GAAP RECONCILIATION
|
|
(Dollars in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
|
|
|
January 28, 2017
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
income per
|
|
|
Operating
|
|
|
|
common
|
|
|
income
|
|
Net income
|
|
share
|
|
GAAP Basis
|
|
$
|
85,874
|
|
|
$
|
54,622
|
|
|
$
|
0.30
|
|
% of Revenue
|
|
|
7.8
|
%
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Add: Asset Impairment and Restructuring Charges(1):
|
|
21,166
|
|
|
|
13,991
|
|
|
|
0.07
|
|
Tax (2):
|
|
|
-
|
|
|
|
3,088
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
Non-GAAP Basis
|
|
$
|
107,040
|
|
|
$
|
71,701
|
|
|
$
|
0.39
|
|
% of Revenue
|
|
|
9.8
|
%
|
|
|
6.5
|
%
|
|
|
|
(1)
|
|
-
|
|
$21.2 million pre-tax asset impairments and restructuring charges
relating to our wholly-owned businesses in the United Kingdom and
Asia.
|
|
(2)
|
|
-
|
|
GAAP tax rate included impact of valuation allowances on asset
impairment and restructuring charges. Excluding the impact of
those items resulted in a 33.9% tax rate for the quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN EAGLE OUTFITTERS, INC.
|
|
GAAP TO NON-GAAP RECONCILIATION
|
|
(Dollars in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
52 Weeks Ended
|
|
|
January 28, 2017
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
income per
|
|
|
Operating
|
|
|
|
common
|
|
|
income
|
|
Net income
|
|
share
|
|
GAAP Basis
|
|
$
|
331,476
|
|
|
$
|
212,449
|
|
|
$
|
1.16
|
|
% of Revenue
|
|
|
9.2
|
%
|
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Add: Asset Impairment and Restructuring Charges(1): |
|
|
21,166
|
|
|
|
13,631
|
|
|
|
0.07
|
|
Tax (2):
|
|
|
-
|
|
|
|
3,447
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
Non-GAAP Basis
|
|
$
|
352,642
|
|
|
$
|
229,527
|
|
|
$
|
1.25
|
|
% of Revenue
|
|
|
9.8
|
%
|
|
|
6.4
|
%
|
|
|
|
(1)
|
|
-
|
|
$21.2 million pre-tax asset impairments and restructuring charges
relating to our wholly-owned businesses in the United Kingdom and
Asia.
|
|
(2)
|
|
-
|
|
GAAP tax rate included impact of valuation allowances on asset
impairment and restructuring charges. Excluding the impact of
those items resulted in a 35.6% tax rate for the year.
|
|
|
|
|
|
|
|
|
|
AMERICAN EAGLE OUTFITTERS, INC.
|
|
GAAP TO NON-GAAP RECONCILIATION
|
|
(Dollars in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
13 Weeks Ended
|
|
|
April 29, 2017
|
|
|
|
|
|
Diluted income
|
|
|
per common
|
|
|
share
|
|
GAAP Basis
|
|
$ 0.14
|
|
|
|
|
Add:Restructuring Charges(1): |
|
0.02
|
|
|
|
|
Non-GAAP Basis
|
|
$ 0.16
|
|
(1)
|
|
-
|
|
$5.4 million pre-tax restructuring charges for severance and related
charges, which includes corporate overhead reductions and charges
for the United Kingdom, Hong Kong, and China.
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN EAGLE OUTFITTERS, INC.
|
|
COMPARABLE SALES RESULTS BY BRAND
|
|
(unaudited)
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
Comparable Sales
|
|
|
2017
|
|
2016
|
|
American Eagle Outfitters, Inc. (1) |
|
8
|
%
|
|
0.4
|
%
|
|
|
|
|
|
|
AE Total Brand (1) |
|
5
|
%
|
|
-1
|
%
|
|
aerie Total Brand (1) |
|
34
|
%
|
|
17
|
%
|
|
|
|
|
|
|
|
Fiscal Year
|
|
|
Comparable Sales
|
|
|
2017
|
|
2016
|
|
American Eagle Outfitters, Inc. (1) |
|
4
|
%
|
|
3
|
%
|
|
|
|
|
|
|
AE Total Brand (1) |
|
2
|
%
|
|
1
|
%
|
|
aerie Total Brand (1) |
|
27
|
%
|
|
23
|
%
|
|
(1)
|
|
-
|
|
AEO Direct is included in consolidated and total brand comparable
sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN EAGLE OUTFITTERS, INC.
|
|
STORE INFORMATION
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
Fiscal Year
|
|
Fiscal 2018
|
|
|
|
|
2017
|
|
2017
|
|
Guidance
|
|
Consolidated stores at beginning of period
|
|
1,058
|
|
1,050
|
|
1,047
|
|
Consolidated stores opened during the period
|
|
|
|
|
|
|
|
|
AE Brand
|
|
2
|
|
15
|
|
15 - 20
|
|
|
aerie
|
|
3
|
|
15
|
|
10 - 15
|
|
|
Tailgate Clothing Co.
|
|
-
|
|
-
|
|
1
|
|
|
Todd Snyder
|
|
-
|
|
1
|
|
1
|
|
Consolidated stores closed during the period
|
|
|
|
|
|
|
|
|
AE Brand
|
|
(12)
|
|
(25)
|
|
(10) - (15)
|
|
|
aerie
|
|
(4)
|
|
(8)
|
|
(5) - (10)
|
|
|
Todd Snyder
|
|
-
|
|
(1)
|
|
-
|
|
Total consolidated stores at end of period
|
|
1,047
|
|
1,047
|
|
1,049 - 1,069
|
|
|
|
|
|
|
|
|
|
|
Stores remodeled and refurbished during the period
|
|
5
|
|
48
|
|
60-70
|
|
Total gross square footage at end of period (in '000)
|
|
6,580
|
|
6,580
|
|
Not Provided
|
|
|
|
|
|
|
|
|
|
|
International license locations at end of period (1) |
|
214
|
|
214
|
|
261
|
|
|
|
|
|
|
|
|
(1)
|
|
-
|
|
International license locations are not included in the consolidated
store data or the total gross square footage calculation.
|
View source version on businesswire.com:
http://www.businesswire.com/news/home/20180308005271/en/
American Eagle Outfitters, Inc.
Olivia Messina, 412-432-3300
LineMedia@ae.com
Source: American Eagle Outfitters, Inc.