American Eagle Outfitters raises 2023 financial targets
After strong holiday sales, American Eagle Outfitters, Inc. (AEO) has said that it is on track to achieve 600 million dollars in operating income for fiscal 2021.
Fueled by strong demand and positive pricing, AEO expects record fourth quarter revenue with growth in the mid-to-high teens compared to fourth quarter 2020, and up in the mid-teens from the fourth quarter of 2019. Operating income is expected to be in the range of 90 to 100 million dollars. The company added that the fourth quarter profit outlook reflects significant progress and meaningful growth compared to the fourth quarter of 2019.
“Inventory and real-estate optimization combined with strong demand fueled by product improvements have reignited profitability at the American Eagle brand. Aerie cemented another year of industry-leading growth and achieved a substantial inflection in profitability as its powerful brand platform continued to scale. Operational excellence drove solid results amidst external disruptions,” said Jay Schottenstein, AEO’s executive chairman and chief executive officer.
AEO targets revenue of approximately 5.8 billion dollars and operating income of 800 million dollars in fiscal 2023, with the operating margin expanding to 13.5 percent.
Aerie revenue is expected to reflect a high-20 percent compound annual growth rate to fiscal 2019, reaching approximately 2.2 billion dollars and providing significant profit flow through. American Eagle revenue is expected to be up slightly to fiscal 2019, at approximately 3.6 billion dollars, with improved profitability.