American Eagle Outfitters Stock Gains On Q3 Beat

American Eagle Outfitters Inc AEO reported third-quarter FY21 sales growth of 24% year-on-year, to $1.27 billion, beating the analyst consensus of $1.23 billion. Adjusted EPS of $0.76 beat the analyst consensus of $0.61.

• Net revenue from Aerie increased 28% Y/Y, and American Eagle rose 21%.
• Consolidated store revenue increased 29%, and digital revenue rose 10% versus last year. Compared to the pre-pandemic Q2 2019 base, store revenue increased 9%, and digital revenue increased 42%.
• Gross profit increased 36% Y/Y to $565 million, and the gross margin expanded 410 basis points Y/Y to 44.3%.
• The operating margin was 16.5%, and operating income for the quarter was $210 million.
• The company held $740.7 million in cash and equivalents as of October 30, 2021.
• Total consolidated ending inventory at cost increased 32% to $740 million compared to a 13% decline last year. The increase was partially driven by higher air freight due to global supply chain disruptions.
• Price Action: AEO shares are trading higher by 4.55% at $28.71 on the last check Tuesday.