American Eagle Outfitters raises financial targets for 2023, bringing operating income to $ 800 million, reflecting exceptional execution on real horsepower. Real growth. Plan; 2021 operating profit on track to $ 600 million following strong vacation demand


PITTSBURGH – (COMMERCIAL THREAD) – After strong sales this holiday season, American Eagle Outfitters, Inc. (NYSE: AEO) is on track to hit $ 600 million in operating income for fiscal 2021.

With a solid year of execution through ‘Real Power. Real growth. value creation plan, the company is on the way to exceeding its operating profit and margin targets for fiscal year 2023 two years ahead of schedule. Building on this momentum, AEO is raising its financial targets for 2023. The plan will continue to focus on finding growth opportunities for Aerie’s powerful brand platform through innovation, deeper market expansion. keys and expanding its customer base. After successfully leading a significant and structural improvement in American Eagle’s profitability, the brand will now pursue a dual program of modest growth and sustaining a good stream of earnings.

AEO will continue to leverage its core operational and customer-centric capabilities and maintain its ROI discipline, all while leveraging the strength of its people, culture and purpose.

“I am extremely proud of the team’s exceptional performance over the past year, which has brought real structural improvements to our business. Optimization of inventory and real estate, combined with strong demand fueled by product improvements, boosted the profitability of the American Eagle brand. Aerie cemented another year of industry-leading growth and achieved a substantial inflection in profitability as its powerful brand platform continued to expand. Operational excellence generated solid results despite external disruptions. We closed a pivotal year for our supply chain, anchored by two key acquisitions, which guaranteed cost savings, locked in key strategic advantages and created a new platform for future growth, ”commented Jay Schottenstein, Executive Chairman of the Board of Directors and Chief Executive Officer of AEO. Officer. “Looking ahead, I see tremendous potential for growth and opportunities across the organization. I am delighted to see us build on our successes as we strive to reach greater heights and create lasting value for our shareholders. ”

Fourth Quarter Outlook

Fueled by strong demand and positive prices, AEO expects a record fourth quarter revenue with growth in the mid to high teens from the fourth quarter of 2020, and rising in the mid- teenage years compared to the fourth quarter of 2019. Operating profit is expected to be in the range of $ 90-100 million, including approximately $ 80 million in higher transportation costs, due to supply chain disruptions supply, as discussed in November. The fourth quarter earnings outlook reflects significant progress and significant growth compared to the fourth quarter of 2019.

Financial outlook 2023

AEO is targeting revenue of approximately $ 5.8 billion and operating profit of $ 800 million for fiscal 2023, with the operating margin rising to 13.5%. These objectives exclude any impairment of assets and restructuring charges.


Previous 2023 targets

New 2023 targets


$ 5.5 billion

$ 5.8 billion

Operating result

$ 550 million

$ 800 million

Operating margin



Aerie’s revenue is expected to reflect a high compound annual growth rate of 20% through fiscal 2019, reaching approximately $ 2.2 billion and providing a strong stream of earnings. American Eagle’s revenue is forecast to increase slightly through fiscal 2019, to around $ 3.6 billion, with improved profitability.

AEO’s management team will discuss its new targets in detail during a fireside chat at the ICR conference today at 1 p.m. EST. The event is accessible in the Investor Relations section of the AEO website, A replay of the event will be archived and posted on the company’s website.

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high quality clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our goal is to show the world that there is REAL power in youth optimism. The company operates stores in the United States, Canada, Mexico and Hong Kong, and ships to 81 countries around the world through its websites. American Eagle and Aerie products are also available at over 200 international locations operated by licensees in 24 countries. For more information, please visit


This press release and related management statements contain forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995), which represent our expectations or beliefs regarding future events, including fourth quarter results. and fiscal 2021. All forward-looking statements made by the Company involve significant risks and uncertainties and are subject to change based on many important factors, some of which may be beyond the control of the Company. Words such as “estimate”, “project”, “plan”, “believe”, “expect”, “anticipate”, “intend”, “possible” and similar expressions can identify statements prospective. Except as required by applicable law, we assume no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise and even though experience or future changes clearly indicate that the projected results expressed or implied therein will not be achieved. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 30, 2021 and in any other documents we may file with the Securities and Exchange In certain cases, the commission has affected, and could affect in the future, the financial performance of the company and could cause the actual results for the fourth quarter and fiscal 2021 and beyond to differ materially those expressed or implied in any of the forward-looking statements included in this press release or otherwise made by management: the negative impacts of the COVID-19 pandemic and the associated operational disruptions; the risk that the company’s operating, financial and investment plans will not be achieved; our inability to anticipate customer demand and changing fashion trends and manage our inventory accordingly; the seasonality of our business; our inability to meet the store’s expected financial performance; our inability to respond to increases in the cost of raw materials, labor and energy; our inability to gain market share in the face of declining footfall in shopping centers; our inability to respond to evolutions in e-commerce and take advantage of omnichannel demands; our inability to develop internationally; difficulties with our international commodity sourcing strategies; challenges with information technology systems, including protection against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and spending, as well as other changes in consumers’ discretionary consumption habits, which may have a material adverse effect on our business, results of operations and liquidity.


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