American Eagle Outfitters Stock Slides After Q4 Report: Here's Why

American Eagle Outfitters (NYSE:AEO) released its fourth-quarter results after Wednesday's closing bell. Here's a look at the key figures from the quarter.  

The Details: American Eagle Outfitters reported quarterly GAAP earnings of 54 cents, in line with the analyst consensus estimate. Quarterly revenue of $1.6 billion was also in line with estimates. 

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For the fourth quarter, American Eagle reported:

• Total comparable sales increased by 3%, following the 8% reported comp growth last year.
• Aerie comparable sales increased 6% on a 13% increase last year. American Eagle comparable sales grew 1% following 6% growth last year.
• Gross margin of 37.3% reflected higher freight and product costs, offset by lower markdowns. BOW costs were roughly neutral.
• Total ending inventory decreased 1% to $637 million. Inventory is healthy and well-positioned for the Spring season.

“2024 demonstrated significant progress on our Powering Profitable Growth Plan. The team delivered strong operating profit growth with positive momentum across our brands and channels as well as disciplined expense management and operating efficiencies,” commented Jay Schottenstein, AEO CEO.

Outlook: American Eagle sees a first-quarter revenue decline of mid-single digits and gross margin down year-over-year. The company sees a fiscal 2025 revenue decline in the low-single digits and gross margin down year-over-year.

AEO Price Action: According to data from Benzinga Pro, American Eagle Outfitters shares are down 5.24% after-hours at $11.45 on Wednesday.  

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