Welcome!

News Feed Item

Earnings Briefing - American Eagle Outfitters

Editor Note: For more information about this release, please scroll to bottom.

LONDON, August 29, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings briefing on American Eagle Outfitters Incorporation (NYSE: AEO). The company featured in the headlines on Wednesday, August 20, 2014 after declaring its results for the second quarter ended August 02, 2014. During Q2 2014, the company's diluted EPS declined $0.07 Y-o-Y and its net revenue decreased 2% Y-o-Y. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview  

During Q2 FY14, American Eagle Outfitters Inc. reported net revenue of $710.59 million, compared with $727.31 million in the prior year quarter. For Q2 FY14, the company's diluted earnings decreased to $0.03 per share, from $0.10 in the year ago period. Analysts from Bloomberg were expecting the company to report flat diluted EPS and net revenue of $689.68 million in Q2 FY14. American Eagle Outfitters Inc.'s consolidated comparable store sales for the reported quarter decreased by further 7%, following a 7% decline in Q2 FY13. The free research on AEO can be downloaded as in PDF format at:

http://www.Investor-Edge.com/AEOFreeReport

During Q2 FY14, the company's gross profit declined 3% Y-o-Y to $237.55 million from $245.49 million in the prior year quarter, while the gross profit margin fell by 40 basis points Y-o-Y to 33.4% during the quarter. The company's gross margin reflected the effect of de-leverage of buying, occupancy and warehousing costs on negative comparable sales, which was largely offset by favourable merchandise and design costs and a slight improvement in the markdown rate. Further, in Q2 FY14, American Eagle's operating income fell by 59% Y-o-Y to $12.05 million, while its operating margin decreased 240 basis points to 1.7%. The company's selling, general and administrative expenses during the reported quarter increased 2% or $3.74 million Y-o-Y to $190.08 million. As a rate to revenue, SG&A expenses during the reported quarter increased 110 basis points Y-o-Y to 26.7%, driven by investments in advertising, international growth, factory stores and omni-channel initiatives, though the increase was partially offset by reductions in overhead and variable expenses.

Commenting on the company's quarterly results, Jay Schottenstein, Interim CEO of American Eagle Outfitters Inc., stated in the press release that the company's results came slightly above  its expectations, but do not reflect the company's potential. He added that the company made significant progress on its priorities to build a sustainable path to higher profitability. Mr. Schottenstein stated that the company successfully cleared its spring and summer merchandise and entered the second half of the year in a good inventory position and made progress on merchandise improvements, which will ramp up through the holiday season. He added that the company remains vigilant on expense management to achieve strategic initiatives, significant to the company's future success. Mr. Schottenstein remained confident that the company will achieve stronger operating results and deliver increasing shareholder value.

American Eagle Outfitters Inc.'s total merchandise inventories for the quarter ended August 02, 2014 declined 15% Y-o-Y to $393.31 million, from $461.08 million in the preceding year quarter. In Q2 FY14, the company's capital expenditures totaled $74 million. For FY 2014, the company continues to expect capital expenditures of approximately $230 million, while for FY15, the company expects capital spending of approximately $150 million. During Q2 FY14, Pittsburgh, Pennsylvania-based retailer opened 20 new stores. As of August 02, 2014, the company's total cash and investments stood at $263 million compared with $405 million at the end of the prior year quarter. For Q3 FY14, the company's management expects EPS to be in the range of approximately $0.17 to $0.19, compared to adjusted earnings of $0.19 per diluted share in Q3 FY13. The company's third quarter outlook is based on a mid single-digit decline in comparable sales, and excludes potential asset impairment and restructuring charges. Sign up and read the free analyst's notes on AEO at:

http://www.Investor-Edge.com/AEO-29082014

Stock Performance 

On Wednesday, August 20, 2014, the day of the earnings release, shares in American Eagle Outfitters Inc. surged 11.99% to end the session at $12.98. On the last close, Thursday, August 28, 2014, shares of the company finished the day 1.13% lower at $14.03. The stock vacillated between $13.68 and $14.08 during the session. A total of 7.60 million shares were traded, which was above its three months average volume of 5.02 million shares. Over the previous three trading sessions and in the last one month, shares in American Eagle Outfitters Inc. have gained 2.71% and 36.48%, respectively. However, the stock has declined 2.57% from the beginning of 2014. Shares in American Eagle Outfitters Inc. are trading above their 50-day and 200-day moving averages of $11.30 and $12.76, respectively. Furthermore, the company's stock traded at a PE ratio of 33.33 and has a Relative Strength Index (RSI) of 82.42. Visit Investor-Edge and access the latest research on AEO at:

http://www.Investor-Edge.com/AEOEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, American Eagle Outfitters Inc. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on AEO is available at:

http://www.Investor-Edge.com/AEOInsiderTrading

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

EDITOR'S NOTES:

1. This is not company news. We are an independent source and our views do not reflect the companies mentioned.

2. Information in this release is produced on a best efforts basis by Rohit Tuli, a CFA charterholder. The content is then further fact checked and reviewed by an outsourced research provider. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

3. This information is submitted as a net-positive to companies mentioned, to increase awareness for mentioned companies to our subscriber base and the investing public.

4. If you wish to have your company covered in more detail by our team, or wish to learn more about our services, please contact us at pubco [at] http://www.investor-edge.com.

5. For any urgent concerns or inquiries, please contact us at compliance [at] http://www.investor-edge.com.

6. Are you a public company? Would you like to see similar coverage on your company? Send us a full investors' package to research [at] http://www.investor-edge.com for consideration.

COMPLIANCE PROCEDURE

Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by Rohit Tuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.

NOT FINANCIAL ADVICE

Investor-Edge makes no warranty, expressed or implied, as to the accuracy or completeness or fitness for a purpose (investment or otherwise), of the information provided in this document. This information is not to be construed as personal financial advice. Readers are encouraged to consult their personal financial advisor before making any decisions to buy, sell or hold any securities mentioned herein.

NO WARRANTY OR LIABILITY ASSUMED

Investor-Edge is not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by Investor-Edge whatsoever for any direct, indirect or consequential loss arising from the use of this document. Investor-Edge expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Investor-Edge does not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE Investor-Edge

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.