American Eagle Outfitters (NYSE:AEO) reported stronger-than-expected results for its fourth quarter and fiscal 2019 on Wednesday.
The Pittsburgh-based company reported EPS of $0.03 for the 13 weeks ended February 1, 2020. This compared to $0.43 for the 13 weeks ended February 2, 2019. Adjusted EPS of $0.37 excludes $0.34 of impairment, restructuring and related charges.
Those charges amounted to approximately $76 million pre-tax, or $0.34 per share after-tax. Approximately $65 million of the pre-tax charges related to the non-cash impairment of 20 stores and the remainder primarily reflected severance and other costs.
For the 52 weeks ended February 1, 2020, the company reported EPS of $1.12. This compared to $1.47 for the 52 weeks ended February 2, 2019.
Adjusted EPS of $1.48 excludes $0.36 of impairment, restructuring and related charges and compared to adjusted EPS of $1.48 last year, which excluded $0.01 of restructuring and related charges. The EPS figures refer to diluted earnings per share.
Said CEO Jay Schottenstein, “Although we faced some challenges in 2019, we made good progress on our strategic growth pillars, posting record revenues. We saw strong customer engagement and positive traffic across brands and channels.
“Aerie delivered exceptional growth, led by its unique brand positioning and strong customer connection, and has significant runway ahead. American Eagle saw growth in its signature jeans and bottoms categories, where we continue to gain meaningful market share.
"I’m also pleased that we successfully cleared through excess holiday inventory, ending the year well-positioned.”
AEO shares dropped 43 cents, or 3.3%, to $12.44.
