American Eagle Outfitters Inc announced that earnings for the 13 weeks ended May 5, 2007 increased 25% to $0.35 per diluted share from $0.28 per diluted share for the 13 week period ended April 29, 2006.
"I'm proud of our team for delivering strong first quarter results, which truly demonstrates the sustainability of our performance, the strength of the AE brand and good expense management,” said Jim O'Donnell, Chief Executive Officer.
“We continue to capitalize on our systems and the investments we've made in critical functions such as sourcing and production. While keeping a sharp focus on strengthening our operations, we are also advancing future growth initiatives within the American Eagle brand, our aerie intimates concept and MARTIN + OSA.”
First Quarter Results : Total sales for the 13 weeks ended May 5, 2007 increased 17% to $612.4 million compared to $522.4 million for the 13 week period ended April 29, 2006. Due to the 53rd week in fiscal 2006, first quarter comparable store sales are compared to the 13 week period ended May 6, 2006. On this basis, the company delivered a comparable store sales increase of 6%.
Gross profit for the first quarter increased to $298.5 million, or 48.7% as a percent to sales, similar to last year. A higher merchandise margin was offset by the de-leveraging of distribution services and delivery charges. Rent expense was flat as a percent to sales.
First quarter SG&A expenses of $157.0 million leveraged 20 basis points to 25.6% as a percent to sales. This compared to $134.7 million, or 25.8% as a percent to sales last year. Within SG&A, supplies and direct compensation leveraged, while professional services, services purchased and incentive compensation increased as a percent to sales.
marketing@alchempro.com
