American Eagle Outfitters, Inc. (Nasdaq:AEOS) today announced its consolidated financial results for the third quarter ended November 1, 2003:
Third Quarter Ended November 1, 2003
– Total sales decreased 0.2% to $373.8 million from $374.5 million for the quarter ended November 2, 2002.
– Sales for the third quarter 2003 included $22.8 million from the Bluenotes/Thriftys operation, compared to $21.7 million for the corresponding period last year.
– Comparable store sales for the American Eagle Outfitters stores declined 10.4% for the quarter ended November 1, 2003.
– Consolidated comparable store sales, which include American Eagle and Bluenotes/Thriftys stores, declined 10.3% when compared to the corresponding period last year.
– Reported net income for the quarter decreased to $10.1 million, or $0.14 per share on a diluted basis. Reported net income includes a non-cash goodwill impairment charge of $8.0 million, or $0.11 per share on a diluted basis.
– During the quarter ended November 1, 2003, the Company recognized an $8.0 million estimate for a non-cash goodwill impairment charge related to the Bluenotes segment due to continuing poor performance at this division. The Company has retained a third party to provide an independent valuation and will adjust the estimated impairment charge based on the valuation results in the fourth quarter.
– Adjusted net income(1) for the quarter, which excludes a non-cash goodwill impairment charge, decreased to $18.1 million, or $0.25 per share on a diluted basis, from net income of $27.1 million, or $0.37 per share on a diluted basis last year.
Year-to-Date for the Nine Months Ended November 1, 2003
– Total sales increased 3.2% to $1.003 billion from $971.6 million for the nine months ended November 2, 2002.
– Sales for the nine months ended November 1, 2003 included $57.9 million from the Bluenotes/Thriftys operation, compared to $58.0 million for the corresponding period last year.
– Comparable store sales for the American Eagle Outfitters stores declined 7.4% when compared to the same nine month period last year.
– Consolidated comparable store sales, which include American Eagle and Bluenotes/Thriftys stores, declined 7.6% when compared to the corresponding period last year.
– Reported net income for the year-to-date period decreased to $24.6 million, or $0.34 per share on a diluted basis. Reported net income includes a non-cash goodwill impairment charge of $8.0 million, or $0.11 per share on a diluted basis.
– Adjusted net income(1) for the year-to-date period, which excludes a non-cash goodwill impairment charge, decreased to $32.6 million, or $0.45 per share on a diluted basis from net income of $49.9 million, or $0.68 per share on a diluted basis last year.
The Company stated that November month-to-date comparable store sales have declined in the low single-digits. Sales trends have improved since October with more seasonable weather, the Company's clearance sale and the holiday floorset.
