EXHIBIT 99.1
AMERICAN EAGLE
OUTFITTERS
Reports First Quarter Fully Diluted EPS of $0.09
on Total Sales Increase of 5.0%
Warrendale, PA, May 15, 2003 - American Eagle Outfitters, Inc. (NASDAQ: AEOS) today announced its consolidated financial results for the first quarter ended May 3, 2003:
- Total sales increased 5.0% to $291.9 million from $277.9 million for the quarter ended May 4, 2002.
- Sales for the first quarter 2003 included $15.8 million from the Bluenotes/Thriftys operation, compared to $17.5 million for the corresponding period last year.
- Comparable store sales for the American Eagle Outfitters stores declined 5.8% for the quarter ended May 3, 2003.
- Consolidated comparable store sales, which include American Eagle and Bluenotes/Thriftys stores, decreased 6.5% when compared to the corresponding period last year.
- Net income for the quarter decreased to $6.4 million, or $0.09 per share on a diluted basis, from net income of $12.7 million, or $0.17 per share on a diluted basis last year.
* * * *
At 9:00 a.m. EST, on May 15, 2003, 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 beginning May 15th at 1:00 p.m. EST through May 31st. To listen to the replay, dial 1-800-642-1687 and reference confirmation code #9672930. An audio replay of the conference call will also be available at www.ae.com until August 14th.
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 702 AE stores in 48 states and the District of Columbia, 59 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
|
| | (Unaudited) | | | | (Unaudited) |
| | May 3,
2003 | | February 1,
2003 | | May 4,
2002 |
ASSETS | | | | | | |
Cash and cash equivalents | $ | 106,955 | $ | 194,526 | $ | 120,054 |
Short-term investments | | 107,066 | | 47,047 | | 62,377 |
Merchandise inventory | | 146,205 | | 124,708 | | 114,183 |
Other current assets | | 74,401 | | 61,597 | | 76,364 |
Total current assets | | 434,627 | | 427,878 | | 372,978 |
Property and equipment, net | | 270,903 | | 267,479 | | 262,959 |
Goodwill, net | | 23,614 | | 23,614 | | 23,966 |
Other assets, net | | 30,882 | | 22,368 | | 24,660 |
Total Assets | $ | 760,026 | $ | 741,339 | $ | 684,563 |
| | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
Accounts payable | $ | 60,769 | $ | 50,608 | $ | 70,644 |
Accrued compensation and payroll taxes | | 14,962 | | 13,001 | | 19,800 |
Accrued rent | | 27,291 | | 28,476 | | 27,570 |
Accrued income and other taxes | | 18,449 | | 12,655 | | 883 |
| Unredeemed stored value cards and gift certificates | | 16,195 | | 22,837 | | 12,021 |
Current portion of note payable | | 4,528 | | 4,225 | | 4,112 |
Other current liabilities | | 9,931 | | 9,784 | | 9,184 |
Total current liabilities | | 152,125 | | 141,586 | | 144,214 |
Note Payable | | 16,019 | | 16,356 | | 18,662 |
Other non-current liabilities | | 5,836 | | 5,915 | | 4,188 |
Total non-current liabilities | | 21,855 | | 22,271 | | 22,850 |
Total stockholders' equity | | 586,046 | | 577,482 | | 517,499 |
Total Liabilities and Stockholders' Equity | $ | 760,026 | $ | 741,339 | $ | 684,563 |
| | | | | | |
Current Ratio | | 2.86 | | 3.02 | | 2.59 |
AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
|
| | | | |
| | Three Months Ended |
| | May 3,
2003 | | May 4,
2002 |
| | | | |
| | | | |
Net sales | $ | 291,858 | $ | 277,893 |
Cost of sales, including certain buying, | | | | |
occupancy and warehousing expenses | | 185,870 | | 167,874 |
Gross profit | | 105,988 | | 110,019 |
Selling, general and administrative expenses | | 82,856 | | 78,139 |
Depreciation and amortization | | 13,416 | | 11,958 |
Operating income | | 9,716 | | 19,922 |
Other income, net | | 641 | | 661 |
Income before income taxes | | 10,357 | | 20,583 |
Provision for income taxes | | 3,954 | | 7,865 |
Net income | $ | 6,403 | $ | 12,718 |
| | | | |
Basic income per common share | $ | 0.09 | $ | 0.18 |
Diluted income per common share | $ | 0.09 | $ | 0.17 |
| | | | |
Weighted average common shares outstanding - basic | | 71,056 | | 72,036 |
Weighted average common shares outstanding - diluted | | 71,991 | | 73,714 |
Total square footage at end of period: | | | | | | | | |
| | | | | | | | |
American Eagle Outfitters Stores | | | | | | 3,883,468 | | 3,413,933 |
Bluenotes/Thriftys Stores | | | | | | 353,325 | | 354,853 |
Store count at end of period: | | | | | | | | |
| | | | | | | | |
American Eagle Outfitters Stores | | | | | | 761 | | 689 |
Bluenotes/Thriftys Stores | | | | | | 111 | | 112 |
