SYS-CON MEDIA Authors: Elizabeth White, Pat Romanski, Carmen Gonzalez, Liz McMillan, Kevin Jackson

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
SYS-CON Media announced that Cisco, a worldwide leader in IT that helps companies seize the opportunities of tomorrow, has launched a new ad campaign in Cloud Computing Journal. The ad campaign, a webcast titled 'Is Your Data Center Ready for the Application Economy?', focuses on the latest data center networking technologies, including SDN or ACI, and how customers are using SDN and ACI in their organizations to achieve business agility. The Cisco webcast is available on-demand.
“The year of the cloud – we have no idea when it's really happening but we think it's happening now. For those technology providers like Zentera that are helping enterprises move to the cloud - it's been fun to watch," noted Mike Loftus, VP Product Management and Marketing at Zentera Systems, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile ...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
Companies today struggle to manage the types and volume of data their customers and employees generate and use every day. With billions of requests daily, operational consistency can be elusive. In his session at Big Data Expo, Dave McCrory, CTO at Basho Technologies, will explore how a distributed systems solution, such as NoSQL, can give organizations the consistency and availability necessary to succeed with on-demand data, offering high availability at massive scale.
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness,...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science f...
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Vormetric on Wednesday announced the results of its 2015 Insider Threat Report (ITR), conducted online on their behalf by Harris Poll and in conjunction with analyst firm Ovum in fall 2014 among 818 IT decision makers in various countries, including 408 in the United States. The report details striking findings around how U.S. and international enterprises perceive security threats, the types of employees considered most dangerous, environments at the greatest risk for data loss and the steps or...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP ...
Storage administrators find themselves walking a line between meeting employees’ demands to use public cloud storage services, and their organizations’ need to store information on-premises for security, performance, cost and compliance reasons. However, as file sharing protocols like CIFS and NFS continue to lose their relevance, simply relying only on a NAS-based environment creates inefficiencies that hurt productivity and the bottom line. IT wants to implement cloud storage it can purchase a...