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American Eagle Outfitters Inc. (AEO+2.01%) has submitted its 10-K filing for the fiscal year ended February 1, 2025.
The filing reports total net revenue of $5.329 billion, a 1% increase compared to $5.262 billion in the previous year. This growth is attributed to a 4% increase in total comparable sales, with American Eagle brand sales rising by 3% and Aerie brand sales by 5%.
Gross profit for the fiscal year increased by 3% to $2.089 billion, with a gross margin of 39.2%, up from 38.5% in the prior year. This improvement was driven by increased merchandise margins and stable buying, occupancy, and warehousing costs.
Operating income rose significantly by 92% to $427.3 million, representing 8.0% of total revenue. Adjusted operating income, which excludes impairment, restructuring, and other charges, increased by 19% to $444.9 million.
Net income for the year was reported at $329.4 million, a 94% increase from the previous year. The diluted earnings per share were $1.68, compared to $0.86 in the prior year. Adjusted net income was $342.4 million, with adjusted diluted earnings per share of $1.74.
The company reported a decrease in selling, general, and administrative expenses to $1.431 billion, representing 26.9% of total revenue, down from 27.2% the previous year. This decrease was primarily due to lower corporate compensation costs.
American Eagle Outfitters ended the fiscal year with cash and cash equivalents of $308.9 million and short-term investments of $50 million. The company also reported a working capital of $471.6 million.
Capital expenditures for the year totaled $222.5 million, primarily allocated to store, fixture, and visual investments, as well as information technology initiatives.
The filing details that American Eagle Outfitters plans to continue its focus on omni-channel capabilities and digital investments, aiming to enhance customer experience and operational efficiencies.
The report also highlights the company's commitment to its 'Powering Profitable Growth' strategy, which includes brand amplification, financial discipline, and operational optimization.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the American Eagle Outfitters Inc. annual 10-K report dated March 20, 2025. To report an error, please email earnings@qz.com.