EXHIBIT 99.1
NEWS RELEASE
AMERICAN EAGLE
OUTFITTERS
Reports Record First Quarter EPS from Continuing Operations
of $0.35 versus $0.18 Last Year;
Comparable Store Sales Increase 27.1%;
Provides Second Quarter EPS Guidance
Warrendale, PA, May 12, 2005 - American Eagle Outfitters, Inc. (NASDAQ: AEOS) today announced its consolidated financial results for the first quarter ended April 30, 2005.
Operating income for the quarter increased to $87.5 million, or 19.3% as a percent to sales, from $43.1 million, or 13.0% as a percent to sales last year.
Net income for the quarter increased to $55.3 million, or $0.35 per share on a diluted basis, from net income of $25.3 million, or $0.17 per share on a diluted basis last year (which included a $0.01 loss from discontinued operations).
Management also provided second quarter earnings guidance of $0.32 to $0.33 per share. This compares to earnings of $0.22 per share from continuing operations in the second quarter of last year.
* * * *
At 9:00 a.m. Eastern Time, on May 12, 2005, 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 12th at 12:00 p.m. Eastern Time through May 26th. To listen to the replay, dial 1-800-642-1687 and reference confirmation code #5555612. An audio replay of the conference call will also be available at www.ae.com.
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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 T's as well as a stylish assortment of cool accessories, outerwear and footwear. American Eagle Outfitters currently operates 775 AE stores in 49 states, the District of Columbia and Puerto Rico, and 70 AE stores in Canada. AE also operates via its Web business, www.ae.com, which offers additional sizes and styles of favorite AE merchandise.
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"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.
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AMERICAN EAGLE OUTFITTERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
|
| | April 30,
2005 | | January 29,
2005 | | May 1,
2004 |
| | | (Unaudited) | | | | (Unaudited) (Restated) |
ASSETS | | | | | | |
Cash, cash equivalents and short-term investments | $ | 561,297 | $ | 589,607 | $ | 326,268 |
Merchandise inventory | | 153,749 | | 137,991 | | 146,786 |
Other current assets | | 132,152 | | 100,042 | | 83,114 |
Total current assets | | 847,198 | | 827,640 | | 556,168 |
Property and equipment, net | | 349,493 | | 353,213 | | 339,198 |
Goodwill, net | | 10,136 | | 10,136 | | 10,136 |
| Long-term investments | | 119,897 | | 84,416 | | 24,258 |
Other assets, net | | 29,899 | | 18,254 | | 27,568 |
Total Assets | $ | 1,356,623 | $ | 1,293,659 | $ | 957,328 |
| | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
Accounts payable | $ | 65,638 | $ | 76,344 | $ | 68,777 |
Accrued compensation and payroll taxes | | 30,105 | | 36,008 | | 22,546 |
Accrued rent | | 44,835 | | 45,089 | | 40,173 |
Accrued income and other taxes | | 25,636 | | 33,926 | | 18,152 |
| Unredeemed stored value cards and gift certificates | | 22,287 | | 32,724 | | 18,181 |
Current portion of note payable | | - | | - | | 4,832 |
| Current portion of deferred lease credits | | 10,457 | | 9,798 | | 9,966 |
Other current liabilities | | 14,618 | | 19,376 | | 13,091 |
Total current liabilities | | 213,576 | | 253,265 | | 195,718 |
Note Payable | | - | | - | | 12,660 |
| Deferred lease credits | | 57,162 | | 57,758 | | 55,299 |
Other non-current liabilities | | 26,990 | | 19,150 | | 18,493 |
Total non-current liabilities | | 84,152 | | 76,908 | | 86,452 |
Total stockholders' equity | | 1,058,895 | | 963,486 | | 675,158 |
Total Liabilities and Stockholders' Equity | $ | 1,356,623 | $ | 1,293,659 | $ | 957,328 |
| | | | | | |
Current Ratio | | 3.97 | | 3.27 | | 2.84 |
| | | | | | | |
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AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share amounts) (Unaudited) |
| | | | |
| | Three Months Ended |
| | April 30,
2005 | | May 1,
2004 |
| | | | (Restated) |
| | | | |
Net sales | $ | 454,019 | $ | 332,230 |
Cost of sales, including certain buying, occupancy and warehousing expenses | | 231,859 | | 183,511 |
Gross profit | | 222,160 | | 148,719 |
Selling, general and administrative expenses | | 116,536 | | 89,850 |
Depreciation and amortization | | 18,102 | | 15,738 |
Operating income | | 87,522 | | 43,131 |
Other income, net | | 2,975 | | 940 |
Income before income taxes | | 90,497 | | 44,071 |
Provision for income taxes | | 35,313 | | 17,070 |
| Income from continuing operations, net of tax | | 55,184 | | 27,001 |
| Income (loss) from discontinued operations, net of tax | | 89 | | (1,727) |
Net income | $ | 55,273 | $ | 25,274 |
| | | | |
Basic per common share amounts: | | | | |
| Income from continuing operations | $ | 0.36 | $ | 0.19 |
| Loss from discontinued operations | | 0.00 | | (0.01) |
| Net income per basic common share | $ | 0.36 | $ | 0.18 |
| | | | |
Diluted per common share amounts: | | | | |
| Income from continuing operations | $ | 0.35 | $ | 0.18 |
| Loss from discontinued operations | | 0.00 | | (0.01) |
| Net income per diluted common share | $ | 0.35 | $ | 0.17 |
| | | | |
Weighted average common shares outstanding - basic | | 151,582 | | 143,012 |
Weighted average common shares outstanding - diluted | | 156,109 | | 146,494 |
Total square footage at end of period: | | | | | | 4,549,729 | | 4,285,182 |
|
Store count at end of period: | | | | | | 845 | | 809 |
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AMERICAN EAGLE OUTFITTERS, INC. QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
Quarterly financial information was presented in Note 15 of our 2004 Annual Report on Form 10-K. The aforementioned information was updated from that previously reported to reflect Bluenotes as discontinued operations and to reflect the restatement resulting from our change in lease accounting practices. The Quarterly Consolidated Statements of Operations (unaudited) presented below reflect a more detailed presentation of the Fiscal 2004 quarterly information and are being presented for informational purposes only. |
| | Quarters Ended |
| | January 29, 2005 | | October 30, 2004 | | July 31, 2004 |
(Dollars and shares in thousands, except per share amounts) | | | | (Restated) | | (Restated) |
Net sales | $ | 674,024 | $ | 479,585 | $ | 395,402 |
Cost of sales, including certain buying, occupancy and warehousing expenses | | 341,647 | | 245,727 | | 232,548 |
Gross profit | | 332,377 | | 233,858 | | 162,854 |
Selling, general and administrative expenses | | 142,386 | | 119,642 | | 94,951 |
Depreciation and amortization | | 18,304 | | 17,345 | | 16,886 |
Operating income | | 171,687 | | 96,871 | | 51,017 |
Other income (expense), net | | 3,343 | | (645) | | 491 |
Income before income taxes | | 175,030 | | 96,226 | | 51,508 |
Provision for income taxes | | 68,086 | | 37,521 | | 19,926 |
Income from continuing operations, net of tax | | 106,944 | | 58,705 | | 31,582 |
Loss from discontinued operations, net of income tax benefit | | (6,027) | | (807) | | (2,328) |
Net income | $ | 100,917 | $ | 57,898 | $ | 29,254 |
| | | | | | |
Basic per common share amounts: | | | | | | |
Income from continuing operations | $ | 0.73 | $ | 0.40 | $ | 0.22 |
Loss from discontinued operations | | (0.04) | | 0.00 | | (0.02) |
Net income per basic common share | $ | 0.69 | $ | 0.40 | $ | 0.20 |
| | | | | | |
Diluted per common share amounts: | | | | | | |
Income from continuing operations | $ | 0.70 | $ | 0.39 | $ | 0.22 |
Loss from discontinued operations | | (0.04) | | (0.01) | | (0.02) |
Net income per diluted common share | $ | 0.66 | $ | 0.38 | $ | 0.20 |
| | | | | | |
Weighted average common shares outstanding - basic | | 147,094 | | 146,004 | | 144,502 |
Weighted average common shares outstanding -diluted | | 153,402 | | 151,570 | | 148,328 |
Company Contacts:
Laura Weil
Judy Meehan
724-776-4857
