Earnings Review and Free Research Report: American Eagle Outfitters Reported Better Than Expected Results

Research Desk Line-up: Francesca’s Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 13, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on American Eagle Outfitters, Inc. (NYSE AEO), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AEO, following the Company’s disclosure of its financial results on August 23, 2017, for the second quarter fiscal 2017. The Company’s net revenue increased 2.7% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Francesca’s Holdings Corporation (NASDAQ: FRAN) for due-diligence and potential coverage as the Company reported on September 06, 2017, its financial results for Q2 FY17 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Francesca’s when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AEO; also brushing on FRAN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=AEO

http://protraderdaily.com/optin/?symbol=FRAN

Earnings Reviewed

For three months ended July 29, 2017, American Eagle’s net revenue increased 2.7% to $844.56 million from $822.59 million in Q2 FY16. During Q2 FY17, the comparable sales growth was 2% compared to 3% in Q2 FY16. The net revenue surpassed analysts’ expectations of $826 million.

For the reported quarter, the Company’s gross profit decreased 4.7% to $292.65 million from $307.10 million in Q2 FY16. During Q2 FY17, American Eagle’s gross margin decreased 260 basis points to 34.7% of revenue from 37.3% of revenue in Q2 FY16. For the reported quarter, the Company’s adjusted gross margin decreased 240 basis points to 34.9% of revenue from 37.3% of revenue in Q2 FY16. The decrease was due to increased promotional activity and shipping costs.

For the reported quarter, American Eagle’s selling, general, and administrative (SG&A) expenses increased 2.1% to $203.72 million from $199.56 million in Q2 FY16. During Q2 FY17, the Company’s depreciation and amortization (D&A) expenses increased 3.5% to $40.28 million from $38.90 million in Q2 FY16.

During Q2 FY17, American Eagle’s operating income decreased 43.3% to $38.90 million from $68.66 million in Q2 FY16. For the reported quarter, the Company’s operating margin decreased 370 basis points to 4.6% of revenue from 8.3% of revenue in Q2 FY16. For the reported quarter, the Company’s adjusted operating margin decreased 230 basis points to 6% of revenue from 8.3% of revenue in Q2 FY16.

During Q2 FY17, American Eagle’s other expenses increased 115% to $6.73 million from $3.13 million in Q2 FY16. For the reported quarter, the Company’s effective tax rate was 34.7% compared to 36.5% in Q2 FY16.

During Q2 FY17, American Eagle’s net income decreased 48.9% to $21.24 million on a y-o-y basis from $41.59 million in Q2 FY16. For the reported quarter, the Company’s diluted EPS decreased 47.8% to $0.12 on a y-o-y basis from $0.23 in Q2 FY16. During Q2 FY17, American Eagle’s adjusted diluted EPS decreased 17.4% to $0.19 from $0.23 in Q2 FY16. The adjusted diluted EPS surpassed analysts’ expectations of $0.16.

On September 07, 2017, the Company’s Board of Directors declared a dividend of $0.13 per share, payable on October 20, 2017, to stockholders of record at the close of business on October 06, 2017.

Balance Sheet

As on July 29, 2017, American Eagle’s cash and cash equivalents decreased 22.3% to $192.56 million from $247.93 million in Q2 FY16.

During Q2 FY17, the Company’s accounts receivable increased 23.6% to $80.67 million from $65.28 million in Q2 FY16.

During Q2 FY17, the Company’s merchandise inventory increased 2.7% to $433.46 million from $422.15 million in Q2 FY16.

For the reported quarter, American Eagle’s accounts payable decreased 3.9% to $275.48 million from $286.69 million in Q2 FY16.

Outlook

For FY17, American Eagle expects capital expenditure to be in the range of $160 million to $170 million.

Stock Performance

On Tuesday, September 12, 2017, the stock closed the trading session at $12.94, jumping 5.46% from its previous closing price of $12.27. A total volume of 4.84 million shares have exchanged hands, which was higher than the 3-month average volume of 4.07 million shares. American Eagle Outfitters’ stock price rallied 15.33% in the last one month and 11.65% in the previous three months. The stock is trading at a PE ratio of 13.42 and has a dividend yield of 3.86%. The stock currently has a market cap of $2.34 billion.

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