Revenue full financial year 2025 is estimated to have a decline in less—-leled points, with gross margin below yoy. The company’s approach reflects the challenges of near-term in the consumer and macroeconomic environment, which is balanced by active measures to strengthen revenue and reduce expenses. SG & A expenses for FY25 are expected to decline less—leled points, while depreciation and refinement (D&A) is estimated to be approximately $ 230 million.
American Eagle outfitters are expecting a mid—–per—centurge revenue in the Q1 FY25 and the decline of less——leters for the whole year, with the Yoy below with gross margin. FY24 revenue rose by 1 percent to $ 5.3 billion, with comparable sales increased by 4 percent. Q4 FY24 saw a 3 percent increase in comparable sales but declined 4 percent of revenue. CEO J. Shotenstein highlighted the strategic focus amid challenges.
The company’s operational income is estimated between $ 360 million and $ 375 million with a tax rate of about 25 percent. AEO stated in a press release that the weighted average share calculation is expected to be in the 190 million range, and the capital expenditure is introduced in approximately $ 300 million.
“Entering in 2025, the first quarter has a slow start with less strong demand and cold weather, a slow start than expected. When we guess improvement in the form of improvement in the spring season, we are also taking active steps to strengthen the top-line, manage inventory and reduce expenses. As we navigate through an uncertain consumer and operational scenario, we will also be focused on our long -term strategic priorities, ” J. Shotenstein, Executive Chairman of the Board and Chief Executive Officer at AEO.
FY24 Financial Overview
AEO’s net revenue rose by 1 percent to $ 5.3 billion, despite the adverse effect of $ 60 million from a low sales week in full financial year 2024, ended on 1 February 2025. The total comparable sales increased by 4 percent. The company’s gross profit increased by 3 percent to $ 2.1 billion, with gross margin expansion to 39.2 percent, operated by low fares, utilities and delivery costs, partially offset by high markdown.
Sales, general, and administrative (SG & A) spending were largely in line with $ 1.4 billion last year, taking advantage of 30 basis points (BPS) due to low compensation and incentive costs, partially offset by increase in advertising expenses.
The comparable sales of brand-wise, Eri grew by 5 percent, growing at an 8 percent increase last year, while the comparable sales of the US eagle increased by 3 percent after a 1 percent increase.
GAAP operating income reached $ 427 million, while adjusted operating income was $ 445 million, reflecting an 8.3 percent operating margin. The GAAP slim income was $ 1.68 per share (EPS), with the adjusting EPS adjusted at $ 1.74 depending on the average thin shares of 196 million.
“2024 showed significant progress on our power -profit development scheme. The team provided a strong operational gain increase with positive speed in disciplined expenditure management and operating capacity along with our brands and channels, ”said Shotenstein.
In the fourth quarter of FY24 (Q4), AEO reported a 3 percent increase in total comparable sales after an 8 percent increase in the same period last year. However, the total net revenue has declined by 4 percent, affected by a low sales week and retail calendar shift by about $ 85 million. The comparable sales of Eri increased by 6 percent, increased by 13 percent last year, while the comparable sales of the US eagle increased by 1 percent, leading to 6 percent in the previous year.
Fibre2fashion news desk (sg)
