American Eagle Outfitters Inc (AEO)

Days of inventory on hand (DOH)

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Inventory turnover		5.09	8.13	5.05	5.55	8.57
DOH	days	71.73	44.89	72.24	65.82	42.57

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.09
= 71.73

Based on the provided data, American Eagle Outfitters Inc's days of inventory on hand (DOH) has fluctuated over the years.

From January 28, 2023, to January 31, 2023, the DOH increased from 42.57 days to 65.82 days, indicating a significant increase in the number of days it takes to sell the inventory.

Subsequently, there was a slight improvement seen in the DOH from January 31, 2023, to January 31, 2024, where it decreased to 72.24 days. However, the DOH then decreased notably by February 3, 2024, to 44.89 days, suggesting a more efficient management of inventory during that period.

By January 31, 2025, the DOH increased again to 71.73 days, which may indicate a slowdown in sales relative to the amount of inventory on hand.

Overall, the fluctuation in American Eagle Outfitters Inc's DOH suggests some variability in inventory management efficiency over the years, which could impact the company's profitability and cash flow. It would be essential for the company to monitor its inventory turnover closely and strive to maintain an optimal balance between holding too much inventory and having stockouts.