EXHIBIT 99.1
AMERICAN EAGLE
OUTFITTERS
Reports Second Quarter Fully Diluted EPS of $0.11
on Total Sales Increase of 5.6%
Warrendale, PA, August 14, 2003 - American Eagle Outfitters, Inc. (NASDAQ: AEOS) today announced its consolidated financial results for the second quarter ended August 2, 2003:
Second Quarter Ended August 2, 2003
- Total sales increased 5.6% to $337.1 million from $319.2 million for the quarter ended August 3, 2002.
- Sales for the second quarter 2003 included $19.3 million from the Bluenotes/Thriftys operation, compared to $18.8 million for the corresponding period last year.
- Comparable store sales for the American Eagle Outfitters stores declined 5.3% for the quarter ended August 2, 2003.
- Consolidated comparable store sales, which include American Eagle and Bluenotes/Thriftys stores, decreased 5.5% when compared to the corresponding period last year.
- Net income for the quarter decreased to $8.1 million, or $0.11 per share on a diluted basis, from net income of $10.1 million, or $0.14 per share on a diluted basis last year.
Year-to-Date for the Twenty-Six Weeks Ended August 2, 2003
- Total sales increased 5.3% to $628.9 million from $597.1 million for the twenty-six weeks ended August 3, 2002.
- Sales for the twenty-six weeks ended August 2, 2003 included $35.1 million from the Bluenotes/Thriftys operation, compared to $36.3 million for the corresponding period last year.
- Comparable store sales for the American Eagle Outfitters stores declined 5.6% when compared to the same twenty-six week period last year.
- Consolidated comparable store sales, which include American Eagle and Bluenotes/Thriftys stores, decreased 6.0% when compared to the corresponding period last year.
- Net income for the period decreased to $14.5 million, or $0.20 per share on a diluted basis, from net income of $22.8 million, or $0.31 per share on a diluted basis last year.
The Company stated that comparable store sales for the American Eagle Outfitters stores through the first ten days of August have declined 8%. The Company currently expects the comparable store sales trend in the negative high single-digits to continue throughout the month of August.
* * * *
At 9:00 a.m. EST, on August 14, 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 August 14th at 1:00 p.m. EST through August 28th. To listen to the replay, dial 1-800-642-1687 and reference confirmation code #1595024. An audio replay of the conference call will also be available at www.ae.com until November 12th.
American Eagle Outfitters (NASDAQ: AEOS) is a leading lifestyle retailer that designs, markets, and sells its own brand of casual, fashion-right clothing for 20 year olds, providing high-quality merchandise at affordable prices. AE's collection includes modern basics like jeans, surplus, and graphic Ts as well as a stylish assortment of cool accessories, outerwear, footwear and swimwear. 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 717 AE stores in 49 states and the District of Columbia, 61 AE stores in Canada, and 111 Bluenotes/Thriftys stores in Canada. AE also operates via its internet business, ae.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, which represent our expectations or beliefs concerning future events, specifically regarding August sales. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company's control. Such factors include, but are not limited to the risk that our August sales plan may not be achieved, and those other risks described in the Company's filings with the Securities and Exchange Commission. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. The Company does not undertake to publicly update or revise its forward-looking statements even if future changes make it clear that projected results expressed or implied will not be realized.
Company Contacts:
Laura Weil
Judy Meehan
724-776-4857
AMERICAN EAGLE OUTFITTERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
|
| | (Unaudited) | | | | (Unaudited) |
| | August 2,
2003 | | February 1,
2003 | | August 3,
2002 |
ASSETS | | | | | | |
Cash and cash equivalents | $ | 119,328 | $ | 194,526 | $ | 109,246 |
Short-term investments | | 89,638 | | 47,047 | | 67,756 |
Merchandise inventory | | 159,036 | | 124,708 | | 148,781 |
Other current assets | | 73,815 | | 61,597 | | 63,312 |
Total current assets | | 441,817 | | 427,878 | | 389,095 |
Property and equipment, net | | 277,619 | | 267,479 | | 263,989 |
Goodwill, net | | 23,614 | | 23,614 | | 23,966 |
Other assets, net | | 30,934 | | 22,368 | | 24,690 |
Total Assets | $ | 773,984 | $ | 741,339 | $ | 701,740 |
| | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
Accounts payable | $ | 64,525 | $ | 50,608 | $ | 80,063 |
Accrued compensation and payroll taxes | | 17,762 | | 13,001 | | 16,452 |
Accrued rent | | 27,874 | | 28,476 | | 26,387 |
Accrued income and other taxes | | 14,852 | | 12,655 | | 1,557 |
| Unredeemed stored value cards and gift certificates | | 13,593 | | 22,837 | | 10,238 |
Current portion of note payable | | 4,593 | | 4,225 | | 8,780 |
Other current liabilities | | 10,103 | | 9,784 | | 9,821 |
Total current liabilities | | 153,302 | | 141,586 | | 153,298 |
Note Payable | | 15,100 | | 16,356 | | 17,400 |
Other non-current liabilities | | 9,752 | | 5,915 | | 7,021 |
Total non-current liabilities | | 24,852 | | 22,271 | | 24,421 |
Total stockholders' equity | | 595,830 | | 577,482 | | 524,021 |
Total Liabilities and Stockholders' Equity | $ | 773,984 | $ | 741,339 | $ | 701,740 |
| | | | | | |
Current Ratio | | 2.88 | | 3.02 | | 2.54 |
AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited) |
| | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | August 2,
2003 | | August 3,
2002 | | August 2,
2003 | | August 3,
2002 |
| | | | | | | | |
Net sales | $ | 337,055 | $ | 319,223 | $ | 628,913 | $ | 597,116 |
Cost of sales, including certain buying, | | | | | | | | |
occupancy and warehousing expenses | | 225,866 | | 209,469 | | 411,736 | | 377,343 |
Gross profit | | 111,189 | | 109,754 | | 217,177 | | 219,773 |
Selling, general and administrative expenses | | 84,826 | | 81,154 | | 167,682 | | 159,293 |
Depreciation and amortization | | 13,763 | | 12,487 | | 27,179 | | 24,445 |
Operating income | | 12,600 | | 16,113 | | 22,316 | | 36,035 |
Other income, net | | 514 | | 196 | | 1,155 | | 857 |
Income before income taxes | | 13,114 | | 16,309 | | 23,471 | | 36,892 |
Provision for income taxes | | 5,010 | | 6,229 | | 8,964 | | 14,094 |
Net income | $ | 8,104 | $ | 10,080 | $ | 14,507 | $ | 22,798 |
| | | | | | | | |
Basic income per common share | $ | 0.11 | $ | 0.14 | $ | 0.20 | $ | 0.32 |
Diluted income per common share | $ | 0.11 | $ | 0.14 | $ | 0.20 | $ | 0.31 |
| | | | | | | | |
Weighted average common shares outstanding - basic | | 71,085 | | 72,119 | | 71,071 | | 72,075 |
Weighted average common shares outstanding - diluted | | 72,380 | | 73,265 | | 72,175 | | 73,427 |
Total gross square footage at end of period: | | | | | | | | |
| | | | | | | | |
American Eagle Outfitters Stores | | | | | | 4,009,727 | | 3,552,195 |
Bluenotes/Thriftys Stores | | | | | | 354,206 | | 352,210 |
Store count at end of period: | | | | | | | | |
| | | | | | | | |
American Eagle Outfitters Stores | | | | | | 776 | | 711 |
Bluenotes/Thriftys Stores | | | | | | 111 | | 111 |
