American Eagle Outfitters Inc (AEO)

Gross profit margin

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019	Feb 2, 2019
Gross profit (ttm)	US$ in thousands	2,024,578	1,917,424	1,853,400	1,770,401	1,745,248	1,726,501	1,811,252	1,943,626	1,995,465	1,921,557	1,622,232	1,148,147	1,116,029	1,108,314	1,225,686	1,522,301	1,545,161	1,537,586	1,508,116	1,487,638
Revenue (ttm)	US$ in thousands	5,261,780	5,139,060	5,078,580	5,015,720	4,989,830	4,941,580	4,975,080	5,031,220	5,268,470	4,792,150	4,401,580	3,759,112	3,781,452	3,816,242	3,973,612	4,308,210	4,237,780	4,175,080	4,099,053	4,035,724
Gross profit margin		38.48%	37.31%	36.49%	35.30%	34.98%	34.94%	36.41%	38.63%	37.88%	40.10%	36.86%	30.54%	29.51%	29.04%	30.85%	35.33%	36.46%	36.83%	36.79%	36.86%

February 3, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,024,578K ÷ $5,261,780K
= 38.48%

The gross profit margin of American Eagle Outfitters Inc has shown fluctuations over the past several quarters. The margin indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the company's ability to control production costs and generate profits from its core business activities.

From the data provided, we can observe that the gross profit margin has ranged from a low of 29.04% in August 1, 2020, to a high of 40.10% in October 30, 2021. The margin has generally been above 30% in recent quarters, indicating the company's ability to efficiently manage its production costs and generate a reasonable level of profit from its sales.

There was a significant decline in the gross profit margin from July 31, 2021, to January 30, 2021, where it dropped from 36.86% to 30.54%. This indicates a period where the company may have experienced challenges in controlling its production costs relative to its sales, leading to a decrease in profitability.

Overall, the recent gross profit margins above 30% suggest that American Eagle Outfitters Inc has been effectively managing its cost of goods sold and successfully generating profits from its sales. Continued monitoring of this metric will be important to assess the company's operational efficiency and profitability in the future.