Our balance sheet is healthy. We are working closely with our partners and we're moving production wherever possible to minimize disruption. And previously, these benefits were only available to the largest shippers, to the Amazons or Target or Walmarts. While results to-date have been tremendous, we are still early on this journey. So, at this point now, we are looking at improving profitability in the back half, generating positive free cash flow in the back half of the next year. And I feel like across the industry, its been consistent in terms of a bit of a slowdown that occurred at that point. I would like to turn this call back over to Mr. Jay Schottenstein for closing remarks. Web Applications Developer salaries - 49 salaries reported. Its being very well received. But it's a bit of a moving target. And then for next year, we are going to continue to plan conservatively. This spring, it was great to see customers return to stores fueling a 73% increase in store revenue with strong selling across brands. Learn More, American Eagle Outfitters, inc(AEO 7.39%)Q22021 Earnings CallSep 2, 2021, 9:00 a.m. Published Sep 7, 2022 06:32AM EDT (RTTNews) - American Eagle Outfitters Inc. (AEO) will host a conference call at 4:30 PM ET on September 7, 2022, to discuss Q2 22 earnings results. And good news is, they're not only wearing them in, they're wearing them out now. Yes. Ladies and gentlemen, we have reached the end of todays question-and-answer session. Please go ahead. Our focus on ROI is also evident in the second quarter. I mean this team is firing on all cylinders. Theyjust revealed what they believe are thetenbest stocksfor investors to buy right now and American Eagle Outfitterswasn't one of them! Thanks. Jay, you mentioned logistics and the strength of logistics. The cross brand sales metrics were favorable. We are also mixing the higher ticket with higher margin items. Thanks, Jen and good afternoon everyone. Our results are outstanding and our teams are executing really well in all sorts of adversity. This is going to begin to benefit the P&L in the third quarter and build significantly into the fourth quarter and into 2023 as we cycle peak usage. Jennifer Foyle -- President and Executive Creative Director of AE & Aerie. Weve got over 100 stores that are sort of non-comp or new going into the back half with inventory reset, very bullish on Aerie for the back half and in terms of where were going from here, knowing the macro environment is still uncertain. And I think American Eagle and Aerie does it best as far as comfort casual lifestyle wear, and thats where we are up to, and thats what we are focused on in the future. Supply chain transformation has been a huge focus for us, and we're very focused on controlling everything that we can. And certainly bralette is our key category for us. Thank you so much. But for the future, I think we will be one of the big winners out there. Its very something we are very focused on, not just for the back half, but we are really I think its a major opportunity for us next year in terms of improved profitability obviously, for the brand, but then impacted the company as well. This provides additional liquidity under more favorable terms. And I think that, that holds a very promising outlook for the company as far as a growth vehicle. In the quarter, our women's business reached new highs, led by ongoing strength in bottoms across both fashion and comfort silhouette. Yeah. So I hope everyone can hear me well. Ending inventory was up 20% compared to 21% decline last year. I think there is just a lot of benefit to focusing on the profitability of what we have already invested in over the next four quarters to six quarters. Great, thank you so much. Sorry, you faded out a little bit during your question. $88,388 / yr. Account Manager salaries - 16 salaries reported. We are seeing some new shifts in silhouettes and denim. Thank you. Its still an 80% digital business. Thanks, Michael. I think if you walk into the malls, with the best of the store in the malls, we are figuring out more efficient ways of getting the merchandise to the customer and to the stores. We continue to invest in bringing our customers a seamless and engaging shopping experience across digital and stores. We are going to get results very soon, and we are going to be able to as Mike and Michael said, we are going to be able to implement those tests for spring and on the go forward. We believe the current trends and shifts and silhouette will be a tremendous win for the AE business. So we're going to continue to address that trend. American Eagle Outfitters, Inc. ( NYSE: AEO) Q2 2022 Earnings Conference Call September 7, 2022 4:30 PM ET Company Participants Judy Meehan - Investor Relations Jay Schottenstein -. This included a $30 million impact from incremental end-of-season inventory sell-offs mentioned earlier and a $25 million headwind from higher freight costs. Revenue growth was really solid, but it was below somewhat elevated street expectations. Thank you, Judy and good morning, everyone. And look, we fail to get through Q3, we're always going to remain humble and hungry. Focused investments in our international business are also helping us gain traction in key markets where we see compelling long-term growth opportunity. As Jay touched on, we're very focused on the things that are within our control. With 450 leases either come to term or warranting action in some way this year, we have significant flexibility to manage our store fleet to support our revenue and profit agenda. Cotton pricing has also moderated from peaks this past spring and I expect we are going to see product costs look favorable into next year. Q2 2021 American Eagle Outfitters Inc Earnings Conference Call. Yeah, Jen, and I also -- I will also add some key data. Aeries margins were more impacted as a result of several factors. Hey, Oliver. Okay. We drove incredible margin recovery and cash flow. This year we had more than doubled the number of our most sustainable yield goods, styles across all merchandise categories. Were in line, and we think were in a good place in terms of typical historical clearance levels coming into August and the sales related to those units. And look, we look at building our brand. As we grow OFFLINE, we will start to sort of separate the results. For Aerie, we are focused on markets with the greatest opportunity and are on track with our store-opening schedule. The gross margin rate of 30.9% contracted 1,120 basis points. Is Now the Right Time to Buy American Eagle Outfitters Stock? Hi, Jay. And all categories in Aerie are really checking for us as we speak, especially on the bralette and legging side of the business. What other qualities would be beneficial? We have some excitement coming up for spring 2023. AE really able to ride the storm and from what I see in both brands, I see strength. Whether it's in the marketing, whether it's in the merchandising, design, store operations, logistics side, we have world class players that we were able to attract and still attract that type of caliber. And I think were maybe Jen can take on the product side where were seeing so far during fall and what were expecting going forward. I am pleased to note that we entered the fall season with fresh and current assortments across brands. Our localized fulfillment model now handles a third of our direct orders across the AE and Aerie brands and is continuing to drive efficiencies. First of all, I want to say I'm very proud of the great team that we've been able to assemble. Because I have been around and you going around here. We're currently driving new fashion silhouettes in both men's and women's. It's a little premature, but we'll have a probably announcement in a few weeks about a new denim brand.Because, you asked question -- because, you asked question, we are working on the new denim concept that will be introduced in the next few weeks. So if there is excess air freight, we'll be selling it. Why Retail Stocks Are All Shook Up on Friday, Why American Eagle Outfitters Topped the Market Today. And Jay, maybe the last point to that, too. And then there is a shift for sure into some other bottoms that we are starting to see. I am really proud of all the work we are doing to strengthen the launching within our Company and our communities. Core intimate, bralettes and apparel and swimwear saw strong demand. ET AEO earnings call for the period ending August 1, 2020. And then, Mike, could you just speak to the magnitude of the recent EBIT margin contraction that weve seen at Aerie? We saw a plus 5% increase in 2019. So I think we were up 17% in Q1 2019, if you normalize for that Jamaican [Phonetic] payment, if you're comparing to '19 for the second quarter, we actually up 19%. Category trends were challenged as we cycled exceptional growth last year in a tougher macro environment. Thank you. Thank you. Widely energy reduction and responsible sourcing remains top priorities. After submitting your information, you will receive an email. And then the cadence of holiday, how you're thinking about it? With that, I'll turn the call over to Jen. So, we've exceeded at the first couple of quarters. That's fantastic. So we're focused on profit, we're focused on operating rate, revenue is obviously part of that. The reported revenue increase of 15% included a $40 million benefit to revenue in 2019 from a change in our Japan license agreement. We're putting our customers first and prioritizing product availability. Over the past 8 months, we have made significant progress in scaling Quiet Platforms. I need to reiterate 27 exact consecutive quarters of double-digit comp. So to be honest with you to hit a 5% over '19, for the AE brand that is a new record again, because 2019 was a record. So there is volatility, but we're managing through it. This is a great team we have. And certainly we were prepared for the back-to-school shift. We will continue to build out our Smoothez collection in upcoming seasons. We are the number 1 brand for denim standing in the country. That's where I'm headed. Let me start with a review of the quarter. Jay L. Schottenstein -- Executive Chairman of the Board and Chief Executive Officer. We are incubating on unsubscribed, which is an exciting new concept that Jen and team launched quietly last year that has about five stores open, and is doing very nicely. The $30 million impact to the second quarter profitability to get ourselves right to that inventory, devalue that inventory. As the pandemic continues, our top priority is to keep our people safe. I am also pleased to see that Aeries multiyear growth trajectory remains intact. AEO Investor Relations
Okay. Your next question is coming from Matthew Boss of J.P. Morgan. Quarter end inventory is current and fresh for the fall season. Although the current operating environment is presenting challenges from the ongoing pandemic, the supply chain disruption, there's a lot within our control. Like I said, we are testing and scaling new product categories. ET, Greetings and welcome to the American Eagle Outfitters' Second Quarter 2021 Earnings Conference Call. As I also said at our January Investor meeting, we are on offence emerging from 2020, the strength and focus, a real power, new growth plan is our guiding light. With all this in mind and confidence in our ability to achieve operating income of $600 million this year. Sales metrics were very healthy. As a dominant player, AE is continuously bringing newness to the category. Our average unit retail was up over 20% led by overall strong demand, higher full price sales and fewer promotions. But I'd like to start with a few highlights. in the tables attached to the earnings release, which is posted on our corporate website at www.aeo-inc.com in the Investor Relations section. I have to continually drive comp seven years, almost double-digit year-after-year. Any numbers you can help us with on that, that would be great. But look, I like that $600 million number, it's far ahead of our -- what we told the Street. And certainly, we are testing all of the silhouettes as we speak again. The results actually realized may differ materially based on risk factors included in our SEC filings. Look, American Eagle, we dominate in denim. And now we will have these new stores carrying into the back half and not really not much impact from new store opening costs. And it's really focused on bringing economies of scale and the benefits of speed and costing and diversity to shippers of all sizes. So not necessarily surprised by that based on the macro conditions out there and knowing what kind of back-to-school we were lapping last year. We leaned on end-of-season sell-offs to fully clear out all excess spring and summer goods, which was roughly one-third of the markdown pressure in the quarter and had a $30 million impact to profitability. Our record second quarter results clearly demonstrate the power of our brands and products as well as the strength and agility of our operation. And on the $70 million in freight relief in the back half, I am wondering if you can help us understand how that portions out between Q3 and Q4. I remain very encouraged by all the interest we have received in this business as it continues to expand. Market-beating stocks from our award-winning analyst team. And the past six months have truly underscored the importance of strong partnerships as well as leading capabilities. So those three main factors really go away for the back half. The relaunch of our loyalty program last summer has been extremely successful. 24, 2023 Presentation: Operator Greetings, and welcome to the American . Laura, I think we have time for one more question. All the factories produced our denim are running. I believe I am looking I think it was $10 million in Q3 and $60 million in Q4 was the air freight? Thank you. Look, we're really pleased with the results. Now keep in mind all the shifts that are happening. So again, we're going to continue to navigate and drive what's working in our business for the future and remain nimble. It was really that mid-June to late June time frame. Salary. We are continuing to prioritize investments in these areas. 77 Hot Metal Street
You may proceed with your question. To your first question, yes. Thanks for taking the question. In addition to resetting overall inventory levels to be more in line with demand, we are making adjustments across all categories. On a separate note, we made strategic changes to our leadership structure to enhance focus on consumer experience and our growth initiatives. To receive notifications via email, enter your email address and select at least one subscription below. With the full benefit of these actions, we expect a third quarter weighted average diluted share count of 198 million. Thanks for that. Now, on to American Eagle. And also the pandemic started within four weeks. This was flat to last year, including 2 points of growth from our supply chain acquisitions. But looking at the revenue run rate here in the second quarter, revenue total revenue is up only it looks like about 15% compared to the second quarter of 2019. We anticipate promotional intensity to remain high across retail in the back half of the year. Another follow-up on AirTerra, it sounds very innovative would love your rationale for purchasing that in terms of timing and how it may impact your financial algorithm longer term. Consolidated revenue for the second quarter was $1.2 billion. We talk a little bit about denim, you guys are now to guess depending on the category, the number 1 or number 2 denim player. We remain laser focused on resetting our expense base. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Yes. We have some really great ideas for the future and if this continues to strategize around the OFFLINE business and how. Our team has had a lot of fun bringing this AE iconic heritage to light and I think our customers are really going to love what we're doing. But really, it was isolated in the slim category, to be honest, Jay. In the midst of the challenges were facing this year, were also working hard to position 2023 for improved profitability, solidifying worker cross expenses, CapEx and inventory. Investments in our brands and product over the past several years are supporting our ability to successfully compete in higher ticket products. So I think, if you go back to your target for 10% operating margin, we talked about gross margin being in the high-30s. And we feel good about the assortment that's coming in. Our diluted share count was $209 million and included 36 million shares of unrealized dilution associated with our convertible notes. As a result, our lead times have narrowed dramatically from their peak last November. I'm very proud to announce a record second quarter fueled by strong customer demand for our products and brand. Good afternoon, everyone. And then I would say, though, I do think, gifting could happen early again, with all this in mind, similar to last year. And again, we dont take a lot of markdowns on leggings. This is a team that doesn't stop and we look ahead. Last month, AEO was named the Fast Company's Best Places to Work For Innovators, a distinction that recognizes our deep commitment to encouraging innovation across the organization. Its dominant market position, combined with a fresh focus on inventory management have resulted in the best margins and profits in years. Our next question comes from the line of Adrienne Yih with Barclays. It's on past. This is something that we've been working on for the last 12 months. While overall demand was below our plan, the majority of categories posted increases to last year, undies, leggings, apparel and accessories, all posting positive growth. At the end of the day, we have to be different than everybody else. Brand and product updates along with a laser focus on inventory optimization and promotional discipline drove strong AUR growth and significant merchandise margin expansion. As I said earlier, across brands, my confidence is stronger than ever. I can answer that if you want. Its a lifestyle, not a trend and its in demand. But Mike, you saw tremendous growth in margin dollars at the American Eagle side. We're gaining new customers and the relaunch of our loyalty program has been a success. We also saw increased advertising as well as incentive costs due to strong profit growth. It's a big month. You can do some of your own math on just the implied revenue growth from these stores. So I'd like to start by thanking the entire AEO family for this significant accomplishment. I'll take the first part of that. So look, clearly there is a lot of -- a lot of challenges in supply chain. The supply chain deliver great results even in the face of headwinds. Faster delivery times are contributing to a much better online shopping experience for our customers with approximately 75% of online orders reaching customers within 3 days of checkout in the second quarter. So if you go back to the first quarter call, May 24, we talked about the consistency of the sales trend that we were seeing through the first quarter, up in the mid to high mid-teens to high teens to 2019 is what we were talking about then. Needless to say, I believe our supply chain platform truly is a competitive advantage. Shipping delays and bottlenecks are easing, transit times are shorter and freight costs, although still elevated to pre-pandemic history, have come off substantially from highs reached last year. Thank you for joining us today. Our results year-to-date are a clear proof point that we are focused on the right initiatives positioning us well to drive continued strong financial results and returns to shareholders. You may disconnect your lines at this time. Just any thoughts there would be great? Sure, Matt. And one thing I'm very proud is, that we put together great thing, whether it be marketing, whether it will be our merchandise team, whether it will our designing team, the store operations and definitely our logistics team. And Jen, you talked about concept, we have Todd Snyder, which is on fire. If you could talk about that and if there is a shift towards something dressier or maybe pants and how American Eagle might be positioned for that. We continue to gain meaningful market share in swimwear as Aerie is becoming a true destination in the category. In the last several months has been less than it was a year ago, two years ago, I don't know another retail, we could make that statement that the cost of getting the goods to their stores less than it was before to get all the current cost today. We also actioned expense reductions across the organization. We had countries close up on us. 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