American Eagle Outfitters saw its stock soar on Thursday following a robust fiscal fourth quarter announcement and the introduction of a new strategy to drive profitability.
Strong Financial Performance
The company reported adjusted earnings per share of 61 cents and revenue of $1.68 billion for the quarter ending Feb. 3, surpassing analysts’ expectations. This marked a significant improvement from the previous year, with earnings of 37 cents per share and revenue of $1.5 billion.
For the full year, American Eagle exceeded expectations with earnings of $1.52 per share and revenue of $5.26 billion, compared to the consensus estimate. Adjusted operating margin for 2023 was recorded at 7.1%.
Powering Profitable Growth Plan
American Eagle unveiled its three-year strategy, the Powering Profitable Growth plan, aiming to achieve annual revenue between $5.7 billion to $6 billion and an operating margin of 10%. CEO Jay Schottenstein emphasized the company’s commitment to expanding key businesses, entering new categories, and capitalizing on growth opportunities.
Market Response
Following the announcement, American Eagle stock surged by 13% in premarket trading, outperforming the S&P 500 futures. Over the past year, the company’s shares had climbed by 71%.
In comparison, competitor Abercrombie & Fitch also reported better-than-expected fourth-quarter financials, with its shares rising by 1% in premarket trading.
Stay updated with the latest news from American Eagle Outfitters for more insights into the retail sector.