It is forecast that income will decrease in low digits in a complete prosecutor 2025, with a gross margin also. The company's perspective reflects short -term challenges in the consumer and macroeconomic environment, balanced by proactive measures to strengthen income and reduce expenses. The expenses of SG and A for FY25 are expected to decrease in low digits, while depreciation and amortization (D&A) are projected by approximately $ 230 million.
American Eagle Outfitters awaits a decrease in a single digit income in the first quarter of fiscal year 2015 and a low -digit low digit decrease throughout the year, with a gross margin down. The income of the fiscal year24 increased by 1 percent to $ 5.3 billion, with a 4 percent increase in comparable sales. Q4 Fy24 saw a 3 percent increase in comparable sales but a decrease in income of 4 percent. CEO Jay Schottenstein highlighted the strategic approach in the midst of challenges.
The company's operational income is estimated between $ 360 million and $ 375 million, with a tax rate of approximately 25 percent. The weighted average shares count is expected to be in the low range of 190 million, and capital expenses are projected at approximately $ 300 million, Aeo said in a press release.
“When entering 2025, the first quarter has a slower start than expected, which reflects a less solid demand and a colder climate. Although we anticipate the improvement as the spring season progresses, we are also taking proactive measures to strengthen the upper line, administer expenses and reduce expenses. Jay Schottenstein, Executive President of the Board and Executive Director of AEO.
FINANCIAL DESCRIPTION OF THE FISCAL YEAR24
Aeo net income increased by 1 percent to $ 5.3 billion, despite an adverse impact of $ 60 million of one week of sale in the full fiscal year 2024, completed on February 1, 2025. The total comparable sales increased by 4 percent. The company's gross gain increased by 3 percent to $ 2.1 billion, with a gross margin that expanded to 39.2 percent, driven by lower rental, public services and delivery costs, partially compensated for higher sales.
Sales, general and administrative expenses (SG & a) remained largely in line with last year at $ 1.4 billion, taking advantage of 30 basic points (BP) due to lower compensation and incentive costs, partially compensated by the increase in advertising expenses.
As for the brand, Aerie comparable sales grew by 5 percent, based on an 8 percent growth last year, while comparable American Eagle sales increased by 3 percent, after 1 percent growth.
Gaap operating revenues reached $ 427 million, while the adjusted operational income was $ 445 million, which reflects an operational margin of 8.3 percent. The gains diluted by Gaap per share (EPS) were $ 1.68, with diluted EPS adjusted to $ 1.74, based on a count of average diluted shares of 196 million.
“2024 demonstrated significant progress in our feeding profitable growth plan. The team offered a strong growth in operational profits with a positive impulse in our brands and channels, as well as the management of disciplined expenses and operational efficiencies,” added Schottenstein.
In the fourth quarter (Q4) of FY24, AEO reported a 3 percent increase in total comparable sales, after 8 percent growth in the same period last year. However, total net income decreased by 4 percent to $ 1.6 billion, affected by approximately $ 85 million due to a week of sale less and the change of retail calendar. Comparable aerie sales grew by 6 percent, based on an increase of 13 percent last year, while comparable American Eagle sales increased by 1 percent, after 6 percent growth in the previous year.
Fiber2Fashion News Desk (SG)
