U.S. retailer AEO’s revenue increases 17% to $1.51 billion in Q4FY21
In the fourth quarter of fiscal 2021, gross profit of $489 million increased 11% from $440 million in the fourth quarter of 2020 and reflects a gross margin rate of 32.4%, compared to 34, 0% last year. High transportation costs amounted to $80 million in the quarter. About $60 million was airfreight specific to factory closures in Vietnam, representing a headwind of about 400 basis points for the gross margin rate. This was partially offset by strong product demand, efficient delivery to customers, higher full-price sales, lower promotions and inventory optimization initiatives, AEO said in a press release. .
“2021 has been a pivotal year for AEO. We topped $5 billion in revenue for the first time in company history, grew our active customer roster to record highs, and achieved our best result in more than a decade. We leveraged our healthy cash position to fuel Aerie’s growth and made key acquisitions, creating an industry-leading supply chain platform with growth and profit potential to important long term. I am incredibly proud of our associates and their outstanding performance in 2021, especially amid ongoing macro challenges,” Jay Schottenstein, Executive Chairman and CEO of AEOnoted.
American Eagle Outfitters (AEO) total net income increased $216 million, or 17%, to $1.51 billion in the fourth quarter of Fiscal 2021 from $1.29 billion in the fourth quarter of 2020. In fiscal 2021, total net income increased by $1.3. billion, or 33% to $5.0 billion, compared to $3.8 billion in fiscal 2020.
“We entered 2022 into a stronger business, underpinned by our powerful brands, proven strategy, improved discipline and strategically advantaged operations. Although the macroeconomic environment remains challenging and we factor this into our plans for the year, we expect our results to continue to reflect significant progress over previous years, establishing a new base for profitability. Looking further ahead, I couldn’t be more excited as we build on our success and deliver shareholder returns,” Schottenstein continued.
“We are extremely confident in the strength of our brands and satisfied with the first performances of the spring collections. However, based on a number of macroeconomic uncertainties, we are taking a cautious view of 2022. For the year, we expect operating profit to be between $550 million and $600 million, compared to a adjusted operating profit of $603 million in 2021. Our guidance for 2022 reflects structural improvements in our business and significant growth over the pre-pandemic 2019 period, which posted adjusted operating profit of $314 million,” the statement added.
Largely due to the recovery in the first half of 2021, which contributed to an extraordinary spring season, combined with continued pressures on freight, AEO forecasts a decline in profits in the first half, followed by a recovery in the second half as that we achieve high airfreight. due to plant closures and inventory flow issues last year.
Fibre2Fashion (RR) News Desk