EXHIBIT 99.1
AMERICAN EAGLE
OUTFITTERS
Reports Record First Quarter EPS of $0.34 versus $0.09 Last Year;
Comparable Store Sales Increase 9.3% and Total Sales Rise 19.9%
Warrendale, PA, May 13, 2004 - American Eagle Outfitters, Inc. (NASDAQ: AEOS) today announced its consolidated financial results for the first quarter ended May 1, 2004. Management also stated that at this time they are comfortable with the current second quarter First Call mean estimate of $0.22 per share. Additionally, if sales momentum continues and the markdown rates remain low, there could be upside to the First Call mean.
- Total sales increased 19.9% to $350.0 million from $291.9 million for the quarter ended May 3, 2003.
- Sales for the first quarter 2004 included $17.8 million from the Bluenotes/Thriftys operation, compared to $15.8 million for the corresponding period last year.
- Comparable store sales for the American Eagle Outfitters stores increased 9.8% for the quarter ended May 1, 2004.
- Consolidated comparable store sales, which include American Eagle and Bluenotes/Thriftys stores, increased 9.3% when compared to the corresponding period last year.
- Net income for the quarter increased 292% to $25.1 million, or $0.34 per share on a diluted basis, from net income of $6.4 million, or $0.09 per share on a diluted basis last year.
* * * *
At 9:00 a.m. EST, on May 13, 2004, 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 13th at 1:00 p.m. EST through May 31st. To listen to the replay, dial 1-800-642-1687 and reference confirmation code #6301788. An audio replay of the conference call will also be available at www.ae.com until August 12th.
American Eagle Outfitters (NASDAQ: AEOS) is a leading lifestyle retailer that designs, markets, and sells its own brand of relaxed, casual clothing for 15 to 25 year olds, providing high-quality merchandise at affordable prices. AE's collection includes modern basics like jeans, cargo pants, and graphic Ts as well as a stylish assortment of cool accessories, outerwear and footwear. AE's Canadian subsidiary, Bluenotes/Thriftys, offers a more urban/suburban, denim-driven collection for 12 to 22 year olds. American Eagle Outfitters currently operates 748 AE stores in 49 states, the District of Columbia and Puerto Rico, 64 AE stores in Canada, and 108 Bluenotes/Thriftys stores in Canada. AE also operates via its Web business, www.ae.com, which offers additional sizes and styles of favorite AE merchandise.
"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 second quarter earnings. 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 second quarter sales, markdowns and/or earnings expectations 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) |
| | May1,
2004 | | January 31,
2004 | | May3,
2003 |
ASSETS | | | | | | |
Cash and cash equivalents and short-term investments | $ | 326,268 | $ | 337,812 | $ | 214,021 |
Merchandise inventory | | 146,786 | | 120,586 | | 146,205 |
Other current assets | | 76,840 | | 67,225 | | 74,401 |
Total current assets | | 549,894 | | 525,623 | | 434,627 |
Property and equipment, net | | 277,193 | | 278,689 | | 270,903 |
Goodwill, net | | 10,136 | | 10,136 | | 23,614 |
Other assets, net | | 51,826 | | 50,623 | | 30,882 |
Total Assets | $ | 889,049 | $ | 865,071 | $ | 760,026 |
| | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
Accounts payable | $ | 68,777 | $ | 71,330 | $ | 60,769 |
Accrued compensation and payroll taxes | | 22,546 | | 14,409 | | 14,962 |
Accrued rent | | 30,778 | | 30,985 | | 27,291 |
Accrued income and other taxes | | 18,152 | | 28,669 | | 18,449 |
| Unredeemed stored value cards and gift certificates | | 18,181 | | 25,785 | | 16,195 |
Current portion of note payable | | 4,832 | | 4,832 | | 4,528 |
Other current liabilities | | 13,091 | | 13,025 | | 9,931 |
Total current liabilities | | 176,357 | | 189,035 | | 152,125 |
Note Payable | | 12,660 | | 13,874 | | 16,019 |
Other non-current liabilities | | 20,516 | | 18,492 | | 5,836 |
Total non-current liabilities | | 33,176 | | 32,366 | | 21,855 |
Total stockholders' equity | | 679,516 | | 643,670 | | 586,046 |
Total Liabilities and Stockholders' Equity | $ | 889,049 | $ | 865,071 | $ | 760,026 |
| | | | | | |
Current Ratio | | 3.12 | | 2.78 | | 2.86 |
AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
|
| | | | |
| | Three Months Ended |
| | May 1,
2004 | | May 3,
2003 |
| | | | |
| | | | |
Net sales | $ | 350,025 | $ | 291,858 |
Cost of sales, including certain buying, | | | | |
occupancy and warehousing expenses | | 200,156 | | 185,870 |
Gross profit | | 149,869 | | 105,988 |
Selling, general and administrative expenses | | 95,180 | | 82,856 |
Depreciation and amortization | | 14,622 | | 13,416 |
Operating income | | 40,067 | | 9,716 |
Other income, net | | 977 | | 641 |
Income before income taxes | | 41,044 | | 10,357 |
Provision for income taxes | | 15,937 | | 3,954 |
Net income | $ | 25,107 | $ | 6,403 |
| | | | |
Basic income per common share | $ | 0.35 | $ | 0.09 |
Diluted income per common share | $ | 0.34 | $ | 0.09 |
| | | | |
Weighted average common shares outstanding - basic | | 71,506 | | 71,056 |
Weighted average common shares outstanding - diluted | | 73,247 | | 71,991 |
Total square footage at end of period: | | | | | | | | |
| | | | | | | | |
American Eagle Outfitters Stores | | | | | | 4,285,182 | | 3,883,468 |
Bluenotes/Thriftys Stores | | | | | | 349,661 | | 353,325 |
Store count at end of period: | | | | | | | | |
| | | | | | | | |
American Eagle Outfitters Stores | | | | | | 809 | | 761 |
Bluenotes/Thriftys Stores | | | | | | 109 | | 111 |
