EXHIBIT 99.1
AMERICAN EAGLE
OUTFITTERS
Reports Third Quarter Fully Diluted EPS of $0.37
on Total Sales Increase of 3.0%
Warrendale, PA, November 14, 2002 - American Eagle Outfitters, Inc. (NASDAQ: AEOS) today announced its consolidated financial results for the third quarter ended November 2, 2002:
Third Quarter Ended November 2, 2002
- Total sales increased 3.0% to $374.5 million from $363.7 million for the quarter ended November 3, 2001.
- Sales for the third quarter 2002 included $21.7 million from the Bluenotes/Thriftys operation, compared to $29.4 million for the corresponding period last year.
- Comparable store sales for the American Eagle Outfitters stores declined 5.2% for the quarter ended November 2, 2002.
- Consolidated comparable store sales, which include American Eagle and Bluenotes/Thriftys stores, decreased 7.0% when compared to the corresponding period last year.
- Net income for the quarter decreased to $27.1 million, or $0.37 per share on a diluted basis, from net income of $30.7 million, or $0.42 per share on a diluted basis last year.
Year-to-Date for the Thirty-Nine Weeks Ended November 2, 2002
- Total sales increased 7.0% to $971.6 million from $907.6 million for the thirty-nine weeks ended November 3, 2001.
- Sales for the thirty-nine weeks ended November 2, 2002 included $58.0 million from the Bluenotes/Thriftys operation, compared to $70.9 million for the corresponding period last year.
- Comparable store sales for the American Eagle Outfitters stores declined 5.0% when compared to the same thirty-nine week period last year.
- Consolidated comparable store sales, which include American Eagle and Bluenotes/Thriftys stores, decreased 6.2% when compared to the corresponding period last year.
- Net income for the period decreased to $49.9 million, or $0.68 per share on a diluted basis, from net income of $61.6 million, or $0.83 per share on a diluted basis last year.
At 9:00 a.m. EST, on November 14, 2002, the Company's management team will host a conference call to review the financial results. To listen to the call, dial 877-601-0864 at least ten minutes prior to the start of the call. The conference call will also be simultaneously broadcast over the Internet at www.ae.com. A replay will be available from 1:00 p.m. EST November 14th through November 30th. To listen to the replay, dial 1-800-642-1687 and reference confirmation code #6217908. An audio replay of the conference call will also be available at www.ae.com until February 25, 2003.
American Eagle Outfitters is a leading lifestyle retailer that designs, markets and sells its own brand of relaxed, versatile clothing for 16 to 34 year-olds, providing high-quality merchandise at affordable prices. AE's lifestyle collection includes casual basics like khakis, cargos, and jeans; fashion tops like rugbys, polos, and graphic T's; and functional items like swimwear, outerwear, footwear, and accessories. AE's Canadian subsidiary, Bluenotes/Thriftys, targets a slightly younger demographic, offering a more urban/suburban, denim-driven collection for 12 to 22 year-olds. American Eagle Outfitters currently operates 694 AE stores in 48 states and the District of Columbia, 56 AE stores in Canada, and 111 Bluenotes/Thriftys stores in Canada. AE also operates via its Internet business, ae.com.
Company Contacts:
Laura Weil
Judy Meehan
724-776-4857
AMERICAN EAGLE OUTFITTERS, INC. | ||||||
(Unaudited) | February 2, | (Unaudited) | ||||
ASSETS | ||||||
Cash and cash equivalents | $ | 115,396 | $ | 180,398 | $ | 72,951 |
Short-term investments | 57,576 | 45,085 | 11,853 | |||
Merchandise inventory | 181,916 | 91,096 | 175,968 | |||
Other current assets | 69,344 | 61,451 | 76,991 | |||
Total current assets | 424,232 | 378,030 | 337,763 | |||
Property and equipment, net | 270,283 | 257,731 | 251,172 | |||
Goodwill, net | 23,966 | 23,966 | 25,039 | |||
Other assets, net | 22,626 | 12,994 | 13,450 | |||
Total Assets | $ | 741,107 | $ | 672,721 | $ | 627,424 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Accounts payable | $ | 94,151 | $ | 39,067 | $ | 77,198 |
Accrued compensation and payroll taxes | 19,093 | 27,545 | 24,873 | |||
Accrued rent | 26,998 | 29,779 | 28,522 | |||
Accrued income and other taxes | 8,277 | 24,451 | 3,777 | |||
Current portion of note payable | 8,929 | 4,044 | 4,040 | |||
Other current liabilities | 18,616 | 25,056 | 15,258 | |||
Total current liabilities | 176,064 | 149,942 | 153,668 | |||
Note Payable | 16,663 | 19,361 | 20,352 | |||
Other non-current liabilities | 8,837 | 1,366 | 1,500 | |||
Total non-current liabilities | 25,500 | 20,727 | 21,852 | |||
Total stockholders' equity | 539,543 | 502,052 | 451,904 | |||
Total Liabilities and Stockholders' Equity | $ | 741,107 | $ | 672,721 | $ | 627,424 |
Current Ratio | 2.41 | 2.52 | 2.20 |
AMERICAN EAGLE OUTFITTERS, INC. | ||||||||
Three Months Ended | Nine Months Ended | |||||||
November 2, | November 3, | November 2, | November 3, | |||||
Net sales | $ | 374,471 | $ | 363,659 | $ | 971,587 | $ | 907,599 |
Cost of sales, including certain buying, | ||||||||
occupancy and warehousing expenses | 228,164 | 214,120 | 605,507 | 548,201 | ||||
Gross profit | 146,307 | 149,539 | 366,080 | 359,398 | ||||
Selling, general and administrative expenses | 89,845 | 88,610 | 249,138 | 233,509 | ||||
Depreciation and amortization | 12,969 | 11,403 | 37,414 | 29,352 | ||||
Operating income | 43,493 | 49,526 | 79,528 | 96,537 | ||||
Other income, net | 284 | 53 | 1,141 | 1,898 | ||||
Income before income taxes | 43,777 | 49,579 | 80,669 | 98,435 | ||||
Provision for income taxes | 16,716 | 18,837 | 30,810 | 36,842 | ||||
Net income | $ | 27,061 | $ | 30,742 | $ | 49,859 | $ | 61,593 |
Basic income per common share | $ | 0.38 | $ | 0.43 | $ | 0.69 | $ | 0.86 |
Diluted income per common share | $ | 0.37 | $ | 0.42 | $ | 0.68 | $ | 0.83 |
Weighted average common shares outstanding - basic | 71,559 | 71,891 | 71,901 | 71,416 | ||||
Weighted average common shares outstanding - diluted | 72,405 | 73,455 | 73,088 | 73,880 |
Total square footage at end of period: | ||||||||
American Eagle Outfitters Stores | 3,743,677 | 3,312,004 | ||||||
Bluenotes/Thriftys Stores | 352,210 | 345,896 |
Store count at end of period: | ||||||||
American Eagle Outfitters Stores | 743 | 676 | ||||||
Bluenotes/Thriftys Stores | 111 | 112 |