American Eagle Outfitters Soars to New Heights: AEO Achieves Record Revenue and Operating Profit in 2024
American Eagle Outfitters (AEO) has wrapped up a remarkable year, with the company reporting record revenue of $5.3 billion in 2024.
According to Jay Schottenstein, Executive Chairman and Chief Executive Officer, AEO's new Powering Profitable Growth strategy proved to be a huge success, driving excellent results across all key priorities: amplifying its brands, optimizing operations, and executing with financial discipline. The company's adjusted operating profit of $445 million marked one of the strongest years in history, with significant operating margin expansion.
Notably, American Eagle Outfitters achieved 4% comparable sales growth, with Aerie comp sales rising a staggering 6%. This was reflected in the company's fourth quarter results, which came in slightly ahead of the outlook provided in January. The power brand reported record revenue and operating income, with $142 million in fourth-quarter operating income being the highest delivered in over a decade.
The Amplify pillar saw both American Eagle and Aerie continue to resonate strongly with customers, delivering positive comp growth and expanding their customer accounts. American Eagle maintained its #1 ranking in denim with its core customer base and achieved its sixth consecutive quarter of positive comp growth. Women's was a standout, reflecting strong traction with new dressing occasions.
The Optimize pillar saw AEO make strategic investments in its store fleet and digital platform to support growth across channels. The company also made structural improvements to fuel long-term success, including building speed and agility in its supply chain while delivering the best products and value to customers.
According to Mike Mathias, Chief Financial Officer, AEO had some clear wins with its Powering Profitable Growth strategy, but the company acknowledged that meaningful opportunities remain. To address this, AEO is fine-tuning its strategy moving forward.
Notably, despite these efforts, American Eagle Outfitters has seen a less robust consumer environment and cold weather impacting first quarter to date sales. As a result, the company currently expects full-year revenue and operating income to be down relative to last year due to ongoing consumer uncertainty and changes in the operating landscape.
Despite these challenges, AEO remains optimistic about its prospects moving forward, driven by the power of its iconic brands and structural improvements made to fuel long-term success. With a focus on executing with financial discipline, the company is well-positioned to navigate an uncertain environment and continue delivering strong results.
