American Eagle Reveals Strategy for Growth Amid Strong Holiday Earnings

Key Points:

• American Eagle reports higher-than-expected earnings and revenue for the fourth fiscal quarter.
• The retailer outlines a new growth plan focusing on three key pillars: Amplify, Execute, and Optimize.
• Despite challenges with its internal logistics business, American Eagle remains optimistic about future profitability.

LEXINGTON — American Eagle on Thursday announced a new strategy to boost profitable growth over the next three years, as the retailer said it wrote off $94 million in impairment charges related to its internal logistics business Quiet Platform.

The company also reported holiday earnings that beat Wall Street’s expectations thanks to strong demand and lower markdowns and input costs.

Shares opened more than 8% higher Thursday.

Here’s how American Eagle did in its fourth fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

• Earnings per share: 61 cents adjusted vs. 50 cents expected
• Revenue: $1.68 billion vs. $1.67 billion expected

The company’s reported net income for the three-month period that ended Feb. 3 was $6.32 million, or 3 cents per share, compared with $54.6 million, or 28 cents per share, a year earlier. Excluding one-time items, American Eagle posted adjusted earnings of 61 cents per share.

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