American Eagle Outfitters Inc (AEO)

Operating profit margin

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Operating income (ttm) US$ in thousands 427,504 294,270 317,837 342,089 389,614 445,668 381,302 303,358 200,828 209,120 217,412 287,543 382,260 322,692 263,124 187,478 149,884 215,824 411,497 579,282
Revenue (ttm) US$ in thousands 5,328,650 5,402,930 5,792,750 5,802,750 5,959,940 5,481,910 5,003,880 4,783,750 4,563,620 4,858,830 5,214,140 5,373,790 5,533,440 5,235,470 4,817,300 4,631,760 4,899,120 5,208,940 5,345,000 5,564,040
Operating profit margin 8.02% 5.45% 5.49% 5.90% 6.54% 8.13% 7.62% 6.34% 4.40% 4.30% 4.17% 5.35% 6.91% 6.16% 5.46% 4.05% 3.06% 4.14% 7.70% 10.41%

January 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $427,504K ÷ $5,328,650K
= 8.02%

The operating profit margin of American Eagle Outfitters Inc has shown some fluctuations over the period analyzed. Starting at 10.41% in January 2022, it decreased to 7.70% in April 2022 and further declined to 3.06% in July 2022. This significant drop could indicate challenges in controlling operating expenses relative to revenue during this period.

There was a slight recovery in the operating profit margin to 6.91% by January 2023, but it fluctuated around the 5-6% range for the next few quarters. Notably, in October 2023, there was a noticeable improvement to 7.62%, which further increased to 8.13% by January 2024.

However, the operating profit margin declined again to 5.49% by July 2024, showing some inconsistencies in the company's profitability over time. By the end of January 2025, the operating profit margin had recovered to 8.02%, indicating an improvement in managing operating costs relative to revenue.

Overall, the operating profit margin of American Eagle Outfitters Inc has experienced varying levels of performance, with some periods of stronger profitability and others with challenges in maintaining operating margins. It is important for the company to continue monitoring and managing its operating expenses effectively to sustain and improve its operational profitability.