And I think that, that holds a very promising outlook for the company as far as a growth vehicle. To your first question, yes. Is this kind of a function of having less clearance sales available that might have drove some of the sales in 2Q, and youre just not expecting that? Today, the team will take you through the details of our performance. We protect our brands, both American Eagle I mean certainly American Eagle, is something to be proud of and Aerie, the new up and comer. We are making steady progress toward our long-term goal of rightsizing AE store footprint. $107,765 / yr. Project Manager salaries - 35 salaries reported. We see there could be shortages of goods out there for all, not just for apparel, but you go out today, anything you want to buy cars, you have a shortage of cars, right now. We combined store and digital operations to enable a more holistic and cohesive view of the customer. The cross brand sales metrics were favorable. Good afternoon. In the current strength in the business, we feel confident in our ability to achieve operating profit of $600 million this fiscal year. Thank you for your participation, and enjoy the rest of your day. The launch has been extremely successful, driving incremental traffic to the brand and nearly 6 billion impressions to-date. Record operating income of $168 million reflected a 14.1% operating margin. I think slow and steady wins the race in brand building and how we think about our business and we think long-term, right. So we're focused on profit, we're focused on operating rate, revenue is obviously part of that. In the last several months has been less than it was a year ago, two years ago, I don't know another retail, we could make that statement that the cost of getting the goods to their stores less than it was before to get all the current cost today. Before I turn to Jen, I want to reiterate how pleased I am with our performance year-to-date and how excited I am for what's to come. This is something we strive for every day through innovative associate programs designed to build a collaborative environment. Turning to expenses. Making the world smarter, happier, and richer. I see so much opportunity for us to generate incremental value moving forward. They do the majority of the business. But that $265 million is the highest we returned to shareholders in a year since 2015. Its being very well received. And its nice to be in a position where logistics are freeing up for us, and were able to sort of move a little bit more seamlessly. Team of associates and global partners were able to successfully navigate through a highly disrupted environment. Your next question is coming from Matthew Boss of J.P. Morgan. But mostly, I would like to say that this team has responded fast. I think there is just a lot of benefit to focusing on the profitability of what we have already invested in over the next four quarters to six quarters. I remain very encouraged by all the interest we have received in this business as it continues to expand. So Jen, could you speak to demand shifts that youre seeing across categories? We saw strength across format at both our factory outlets and mainline stores saw healthy growth. So we're very excited about that. We continue to see strong demand for our brands, the macro backdrop is stable. For Aerie, we are focused on markets with the greatest opportunity and are on track with our store-opening schedule. They are highly isolated and black. So, we're very optimistic and we feel in a position as far as inventory is going to be. Can you just sort of dive in a little bit and talk about where the differences were in that business versus your expectations, that would be great. And Mike, do you view this as a baseline for gross margin for which to build on, as we think about this year or are there any areas of give back for us to consider as we think about gross margins beyond this year? This is still an uncertain environment. We have new ideas. Thanks, Jen and good morning, everyone. And all categories in Aerie are really checking for us as we speak, especially on the bralette and legging side of the business. It is clear that our customers are choosing silhouettes transition with the new denim cycle. As Jay mentioned, we are taking numerous steps to improve profitability and cash flow, which I will discuss throughout my remarks today. American Eagle Promo Codes | 15% Off In June 2023 | Forbes American Eagle. If you have an ad-blocker enabled you may be blocked from proceeding. Image source: The Motley Fool. We're not focused on that, because we -- I think we are creating a new revenue baseline as well. With all this in mind and confidence in our ability to achieve operating income of $600 million this year. We have consistent communication support and education for our associates that strongly encourage vaccinations. So we're very proud of that. The clarity on the shift is with back-to-school. Clearly, lapping enormous demand from last year has also been a hurdle. The passion, talent and commitment, are taken our brand and Company to new heights. And we saw that very consistently February through April. I mean I mentioned it. Digital penetration has also grown to 33% from 24%. Can you talk about the changing competitive landscape? Please in sweat [Phonetic] especially when you look at a matching set, that's still trending for us. American Eagle Outfitters, Inc. AEO reported second-quarter fiscal 2021 results, wherein earnings per share beat the Zacks Consensus Estimate, while revenues lagged. After all, the newsletter theyhave run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Brand and product updates along with a laser focus on inventory optimization and promotional discipline drove strong AUR growth and significant merchandise margin expansion. So we're definitely addressing that trend as we look forward, undies are trending nicely. And of course, we are investing in Quiet, which is a business that not only is it providing benefits to American Eagle, but we are very excited about where thats headed and the potential in that business. Financial results exceeded our expectations. But AE is just getting going. 77 Hot Metal Street
Thank you. We continue to execute well across all areas of the Company. Great. It was $10 million in Q3, Kimberly and $60 million in Q4 for the airfreight. So, something probably low-double to maybe mid-teen. From a logistics standpoint, our hub and spoke model with regional inventory positioning and regional fulfillment is working. Growth in the men's business was also strong. It's Mike. Sorry. Momentum has continued into the fall season as customers embrace our amazing brands and cozy company collection. And I feel like across the industry, its been consistent in terms of a bit of a slowdown that occurred at that point. Please go ahead. Even with the meaningful shift, digital demand increased 9% hurdling last year's very strong online demand growth to 48%. So, those are in play right now. What's embedded for the second half, and how much have you been able to offset that with AIR increases? While overall demand was below our plan, the majority of categories posted increases to last year, undies, leggings, apparel and accessories, all posting positive growth. Greetings from London, UK [Phonetic] I'm over here. Another follow-up on AirTerra, it sounds very innovative would love your rationale for purchasing that in terms of timing and how it may impact your financial algorithm longer term. Aerie was about half of that, I think. I want to ask about Aerie. American Eagle Outfitters, inc (AEO) Q2 2021 Earnings Call Transcript We are the number 1 brand for denim standing in the country. The profit unlocked from Aerie's growth has been explosive. Importantly, this is bringing back our ability to be more agile and responsive to changes in demand. And then, Mike, my second follow-up question is can you quantify on basis points the freight impact to Q2? So, let me ask you, was that question to Jen or is that a question to me? As global supply chains continue to be disrupted, this is creating opportunities for us to become even faster, more agile and more efficient. As inventory resets and newer stores continue to build, we expect Ares margins to show a meaningful recovery back to double digits in the second half. I just saw the holiday review for some of the new shoots in American Eagle and Aerie, it's very optimistic with the dressing, what these customers want, and just moving on Aerie. As a dominant player, AE is continuously bringing newness to the category. I think its just based on their likes if you are looking at last year. Another thing, we're very proud of, if we're able track rate down to the Company fast company just rated as one of the 25 best companies, look like innovation. But I feel very good about the company. We ended the quarter with $98 million in cash and total liquidity of $453 million. Pleased with what we saw in August which inventory being positioned well and we think we're in a good position for the rest of the quarter and the rest of the year. The Motley Fool has a disclosure policy. Good morning, everyone. Clearance levels are in line with last year, and we do not have packaways. And certainly, as weve been able to shift the categories in American Eagle I like what Im seeing in outfitting. And we feel good about the assortment that's coming in. So, again, we have to keep on challenging ourselves to comp year-over-year, whether its marketing product production, but thats where we are into right now, and thats what we are thinking about 2023 and beyond. Congrats on the -- it sounds like great denim start to back to school. Across channels, stores and digital are firing on all cylinders and driving meaningful profitability. 10 stocks we like better thanAmerican Eagle OutfittersWhen our award-winning analyst team hasa stock tip, it can pay to listen. I mean thats what our job is, right, to compete and to try to do it better than anyone else out there. It's part of what's fueling efficiencies, allowing us to drive substantially greater sales and margin on far less inventory. And again, we dont take a lot of markdowns on leggings. And we're seeing strong results there. Widely energy reduction and responsible sourcing remains top priorities. As Jay noted, were prioritizing liquidity and financial flexibility in the near-term and pausing our quarterly cash dividend of $0.18 per share. And as we look to the future and you talk about introducing new concepts, I am just wondering if some of the dress-up trend that we are seeing prevalent today is something that American Eagle can participate in and perhaps some of your new concepts are built around that, or if you think the dress-up trend is just a temporary moment. We are hearing a lot of mixed weaves on denim right now, and maybe some disappointment in back-to-school performance. Thank you. With our renewed focus entering this year, we are running the business better than ever across the Board. And with that, I will turn the call over to Mike. But we are also incubating new brands and new businesses. Without open our first test stores in the next 30 days. We are incubating on unsubscribed, which is an exciting new concept that Jen and team launched quietly last year that has about five stores open, and is doing very nicely. We've done things that other retailers haven't done. These statements are based upon information that represents the companys current expectations or beliefs. But clearly, there's a lot of opportunity with what's happening in supply chain today, there's a lot of disruption. And were focused on the profitability of all these new stores and the business in general. Mike Mathias -- Executive Vice President and Chief Financial Officer. Before we begin today's call, I need to remind you that we will make certain forward-looking statements. Earlier this year, we welcomed Liz Brunnemer, AE's new head of design. We continue to pull back on our promotional cadence in undies. I am thankful to our teams for acting quickly and purposely. With that, I'll open it up for questions. We are working closely with our partners and we're moving production wherever possible to minimize disruption. Revenue in the second quarter rose 34% on top of 32% growth last year. Here, we are rebalancing our buys to emphasize the trends that are working very well. Sure, Matt. We expect the momentum is going to continue in the second half. ET, Greetings and welcome to the American Eagle Outfitters' Second Quarter 2021 Earnings Conference Call. Our goods are coming in, they're going directly to markets and out to stores or to customers. Thats great. AE remains number one in jeans and the number two favorite brand for females and number three for meal and our core demographic. On the freight costs, Adrienne, that's a moving target every day. *Average returns of all recommendations since inception. So they were impacted more by some of the shift into August, and certainly believe, our Labor Day. So its $20 million in total, you could take $10 million to $15 million, that being an Aerie impact. The demand in power brand is healthy. But as we all -- we've all been saying, our intent is we're going to be aggressive on getting our product here and making sure the customer does not feel any different from us in holiday and I think that can be a competitive advantage, we all do. Jen said that in American Eagle, like we put some new designers in, it takes time for people, if you like, to get acclimated with the brand. The operating margin of 14.1% was our highest in 13 years. But we're being aggressive -- we're going to incur these costs to make sure that our customer doesn't feel any different storing holiday to their experience. Please. Yet, we know there is more to do in these unprecedented times we are focused on driving continuous improvement across the business. Good afternoon, everyone. AirTerra, if you think about, it's really a relatively small purchase that has huge potential for us. It seems like that's what you're speaking to. As far as chase, we really booked a lot of holiday product early based on the insight that we had from spring, summer and the test that we did for holiday. Excluding one-time items, it earned 60 cents per. While results to-date have been tremendous, we are still early on this journey. Web Applications Developer salaries - 49 salaries reported. To that end, we are making great progress on creating more sustainable products. As new customers are entering the platform, they are realizing efficiencies in their operations, resulting in greater engagement and additional business. And also introducing new concepts into the brand, not just introducing more denim, but introducing some additional fresh product add some new type of products, too, which would be very exciting. Thanks. Aerie's signature for legs than leggings are showing incredible growth. And on the $70 million in freight relief in the back half, I am wondering if you can help us understand how that portions out between Q3 and Q4. I'll take the first part of that. Everybody in this Company if focused. Having the right merchandise and having goods, we will have goods. This quarter, we launched our new striged collection, an industry-first, striged jeans marry the latest in fashion trends with our unwavering commitment to comfort. Q2 2022 American Eagle Outfitters Inc Earnings Call PITTSBURGH Sep 8, 2022 (Thomson StreetEvents) -- Edited Transcript of American Eagle Outfitters Inc earnings conference call or. So I think the team is ready to address that. And you heard from Mike how that really impacted from a seasonality standpoint. Capital expenditures totaled $49 million in the quarter and $86 million year-to-date. Last year, AE really delivered the new goods for September, and Aerie had a new delivery starting with the launch of OFFLINE in July. American. In addition to resetting overall inventory levels to be more in line with demand, we are making adjustments across all categories. We're putting our customers first and prioritizing product availability. I am really proud of all the work we are doing to strengthen the launching within our Company and our communities. And hopefully, next earning calls that we like to have more positive news. This is going to begin to benefit the P&L in the third quarter and build significantly into the fourth quarter and into 2023 as we cycle peak usage. I think you're describing accurately. Maybe Jen, can you just talk a little bit about Aerie in terms of the different new category opportunities. All in all, I couldn't be more pleased with our performance year-to-date. I mean look, we are not just we are working on American Eagle and Aerie and obviously doing some great innovative things there. And I'll go back to unhealthy inventory levels, too many SKUs, too many choices we bought revenue. So I think we were up 17% in Q1 2019, if you normalize for that Jamaican [Phonetic] payment, if you're comparing to '19 for the second quarter, we actually up 19%. Weve got over 100 stores that are sort of non-comp or new going into the back half with inventory reset, very bullish on Aerie for the back half and in terms of where were going from here, knowing the macro environment is still uncertain. So we are expecting -- it's built into our guidance. I think it's top notch. Now keep in mind all the shifts that are happening. I think the new gross margin baseline is this 40% now on an annual basis. We are fulfilling orders faster and with fewer shipments. The team is energized, and I know we are better positioned than ever to leverage our strong brand position. In the meantime, we will stay conservative and focused on the core fundamentals that have brought us success in the past, creating great product, compelling marketing, building unique brands with strong customer connection and chasing into demand. Thanks, Jay and good afternoon, everyone. Looking ahead, I am excited about our fall and holiday collections. [Operator Instructions]. I can answer that if you want. Gross profit dollars declined 26% compared to last year. As we make additional progress, we expect to end the third quarter with inventory up in the mid-single digits and fourth quarter ending inventory down to last year. I watch my daughter every day go to school in sweats and a Hoodie and its here to stay. This is driving improved sales trends as tighter inventory controls enable higher full price sales and greater emphasis on the best selling SKUs. And keep in mind, we still sell that product within Aerie. Thanks for taking the question. There is portfolio downs, we have some factories that are closed, transportation is less predictable. Our next question is coming from Adrienne Yih of Barclays. We've moved production out of closed factories wherever possible. Right. Operating profit more than tripled. This past 2 years, everything got out of sync. But it's going to be -- it's going to differentiate us from everybody, and it's going to be a big opportunity and we're going to get more money for our goods, because it's going to sell or --is that could be as promotional, which is good. You may proceed with your question. Good morning. I like your description of maybe somewhat elevated. AEOs top talent is the keystone of our great Company. I can say with confidence that we're running our business better than ever. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. So I'll just say it's embedded in our $600 million for now and again, could get better. And we're very proud of. Actually, Jay, this might still be for you, but anybody who wants to comment on it. I mean, I learned it 12 years ago when I joined the company. As far as AirTerra, we're extremely excited to acquire AirTerra and to welcome their terrific management team into the AE family. Since second quarter of 2019, revenues have nearly doubled, growing almost $170 million. We look forward to publishing our first ESG report next week, introducing standardized reporting and increased transparency. American Eagle Outfitters (AEO) Q2 Earnings and Revenues Lag Estimates A lot of it tied to these Aerie and OFFLINE stores. I mean, Dana, we're looking for -- everything we're doing is focused on providing scale and speed and cost benefit and customer service benefit for the American Eagle business. We have to deliveries this year versus one last year, because we knew that it was going to happen later and we wanted to delight our customers even more as we anticipate the headwinds into September. And then the cadence of holiday, how you're thinking about it? I wanted to just check on inventory. If I reflect back into Q2, all of our key categories gain market share in Aerie. Just curious if you could provide a little bit more detail on what you're seeing quarter-to-date for back to school trying to cover those again. The bigger point I'll make though is that if you go back in history in the revenue, our revenue number in 2019 was a record for the Company. While there will be incremental transportation cost, we believe we can offset a significant portion. Our next question comes from the line of Kimberly Greenberger with Morgan Stanley. Thank you. So Michael Rempell said it. Here, you can also find the second quarter investor presentation. The good news about our denim is, we're planning denim to sell, we don't see any problems for the fall for getting all the denim. American Eagle Outfitters Shares Fall After Fiscal Q1 Earnings Decline, Annual Revenue .. MT. We have some excitement coming up for spring 2023. Yeah. Its in the American Eagle brand, so very exciting. Our next question is coming from Jay Sole of UBS. Swimwear remains soft. Additionally, offline continues to show incredible potential and demonstrate strong customer acceptance. We saw a plus 5% increase in 2019. And the teams, like I said, were moving fast and getting into some new categories there from the bottoms perspective and in Aerie certainly Offline being a new business for us were seeing great results in that business. Needless to say, I believe our supply chain platform truly is a competitive advantage. Mike, what do you want to add? Jay L. Schottenstein -- Executive Chairman of the Board and Chief Executive Officer. Smoothez is our new collection of favorite first layers that we call anti-shape wear. I've a little technical difficulty. And what we have accomplished most amazing thing is, it our cost of getting the goods to our stores. Was it some of the categories maybe that you thought would trend didnt versus other categories. Our adjusted diluted share count was $207 million. OFFLINE is a new concept for us. Brand revenue declined 2%, following record revenue supported by an exceptionally healthy consumer environment last year. American Eagle Outfitters, Inc. (NYSE:AEO) Q2 2022 Earnings Conference Call September 7, 2022 4:30 PM ET, Jay Schottenstein - Executive Chairman and Chief Executive Officer, Jen Foyle - President, Executive Creative Director, AE and Aerie, Michael Rempell - Chief Operating Officer, Janet Joseph Kloppenburg - JJK Research Associates. Thank you so much. You can sign up for additional subscriptions at any time. Ladies and gentlemen, we have reached the end of todays question-and-answer session. Aerie revenue increased 11% compared to last year, driven by new store openings. And if I turn that piece over to Michael, in terms of where we are for the rest of the season in the AirTerra part of the question. Also, please note that during this call and in the accompanying press release certain financial metrics are presented on both a GAAP and non-GAAP adjusted basis. I think the company is going to be in great shape. In the whole company, we have great strides being made everywhere and really a great culture and great morale. Since closing the acquisition last December, we have added significant amounts of new customers and entered new markets. On the inventory side, we have cleared all excess spring and summer goods and entered the third quarter with better inventory levels and fresh back-to-school and fall merchandise. So we're going to continue to address that trend. In the second quarter, channel performance reflected macro pressures across retail. Thanks, Adrienne. Same-day delivery to the customers, been able to respond that in a way, we're testing technology that we're working out right now that in our stores. While down to last year, our digital business has seen significant growth over the past 3 years, with revenue up 60% to second quarter 2019. I'm proud to say, this marked our 27th consecutive quarter of double-digit growth. As we see comparisons to last years [season] (ph), I am confident momentum will come back to us. We even see room for this rate to move higher as Quiet Platforms expands its footprint to service additional markets next year which should enable nationwide next-day services. Like I said, we are testing and scaling new product categories. Pittsburgh, PA 15203, Q2 2022 American Eagle Outfitters Inc Earnings Conference Call, PDF Format Download (opens in new window), Audio Format Download (opens in new window), Video Format Download (opens in new window). It's a little premature, but we'll have a probably announcement in a few weeks about a new denim brand.Because, you asked question -- because, you asked question, we are working on the new denim concept that will be introduced in the next few weeks. So for those people, those retailers who are able to get their merchandise on a timely basis, it's going to be a big opportunity. That's very exciting. And I think we're exceeding those expectations, I think, yes, so as we talk about our targets. Our tax rate assumption in the high 20s and weighted average share count at approximately 198 million. Yes, good morning. I think Jen and I both said that in our prepared remarks. With the full benefit of these actions, we expect a third quarter weighted average diluted share count of 198 million. So, strategy-wise, how do you take that to the next level beyond just American Eagle? And like I said, its a fairly new team and I like what they are doing. American Eagle Outfitters (AEO) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.13 per share. So, we have Todd Snyder, which is up well over 50% this year.