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American Eagle Outfitters Boosts Q4 Profits, but Takes Cautious Stance to 2025
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American Eagle Outfitters Inc. turned in profit gains for the fourth quarter, but — like other retailers — tiptoed into the new fiscal year amid slower consumer demand. Net income for the fourth quarter jumped to $104.3 million, or 54 cents a diluted share, from $6.3 million, or 3 cents, a year earlier, when $131 million impairment and restructuring charges dragged down results. Earnings per share for the quarter came in 3 cents ahead of the 51 cents analysts forecast, according to Yahoo Finance. And revenues for the three months ended Feb. 1 slipped 4.4 percent to $1.6 billion from $1.7 billion a year earlier, with an extra week in the year-ago period skewing results. Related Articles Footwear EXCLUSIVE: Jay Schottenstein, Patrizio Di Marco Revive Pro-Keds Globally Financial For Some Fashion Firms, Will Holiday 2024 Be as Good as It Gets? On a comparable basis, which factors out that week, sales rose 3 percent, building on 8 percent comp growth a year earlier. That bump-up for the quarter included a 6 percent comp increase from the Aerie division and a 1 percent comp gain at the American Eagle business. You May Also Like Jay Schottenstein, the company’s executive chairman and chief executive officer, said the company has been making headway on its Powering Profitable Growth strategic plan. “The team delivered strong operating profit growth with positive momentum across our brands and channels as well as disciplined expense management and operating efficiencies,” Schottenstein said in a statement. For the full year, AEO’s revenues increased 1.3 percent to $5.33 billion from $5.26 billion. But this year, the company is looking for a low-single digit decline on the top line. “Entering 2025, the first quarter is off to a slower start than expected, reflecting less robust demand and colder weather,” Schottenstein said. “While we anticipate improvement as the spring season gets underway, we are also taking proactive steps to strengthen the top line, manage inventory and reduce expenses. As we navigate through an uncertain consumer and operating landscape, we will also remain focused on our long-term strategic priorities.” On Wall Street — where traders are still trying to gauge the consumer mood, the economic outlook and the impact of President Donald Trump’s trade wars — investors were cautious. Shares of AEO fell 4.9 percent to $10.89 in after-hours trading on Wednesday.