The US clothing group American Eagle Outfitters Inc. (AEO) was able to exceed market expectations in the 2023/24 financial year thanks to a strong final quarter. In addition to its current results, the company also presented its current growth targets for the coming years on Thursday.
In the past financial year, which ended on February 3rd, the group generated sales of 5.26 billion US dollars (4.82 billion euros), exceeding the previous year’s level by 5.4 percent.
The Aerie label achieved a double-digit increase in sales
The main brand American Eagle increased by 3.0 percent to 3.36 billion US dollars, the Aerie label achieved an increase of 10.8 percent to 1.67 billion US dollars. Total sales from other business areas rose 4.2 percent to $489.1 million.
Due to significantly higher one-time charges, which resulted, among other things, from value adjustments and restructuring costs, the operating result fell by 9.8 percent to $222.7 million. However, adjusted for special effects, it rose by 39.4 percent to $375.4 million. Reported net profit grew by 35.9 percent to 170.0 million US dollars (155.6 million euros).
Over the next three years, annual sales are expected to increase to up to six billion US dollars
For the next three years, the clothing supplier is now targeting annual sales increases in the range of three to five percent. Group sales would ultimately grow to between $5.7 and $6.0 billion. During this period, the operating result is expected to increase annually by a percentage in the mid to high teens.
In addition to strengthening the Group brands and expanding into new product categories, the goals are to be achieved through “financial discipline” and the optimization of operational processes.