American Eagle Outfitters Inc (AEO)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 222,718 | 287,064 | 279,251 | 227,975 | 247,046 | 253,418 | 345,557 | 499,539 | 461,220 | 476,817 | 254,893 | -271,343 | -274,451 | -266,900 | -172,741 | 233,345 | 334,270 | 339,801 | 334,270 | 337,130 |
| 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 |
| Operating profit margin | 4.23% | 5.59% | 5.50% | 4.55% | 4.95% | 5.13% | 6.95% | 9.93% | 8.75% | 9.95% | 5.79% | -7.22% | -7.26% | -6.99% | -4.35% | 5.42% | 7.89% | 8.14% | 8.15% | 8.35% |
February 3, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $222,718K ÷ $5,261,780K
= 4.23%
The operating profit margin of American Eagle Outfitters Inc has shown variability over the past several quarters. In general, the operating profit margin measures the company's efficiency at generating profits from its core operations, excluding non-operating expenses.
From February 2019 to July 2022, the operating profit margin ranged from negative values, indicating losses, to a high of 9.93% in April 2022. The company experienced a significant improvement in its operating profit margin over this period, demonstrating better control over costs and improved operational performance.
However, the operating profit margin declined in the following quarters, reaching a low of 4.23% in February 2024. This could be a concern as it may indicate challenges in maintaining profitability levels or increased operating expenses.
It is important for American Eagle Outfitters Inc to closely monitor its operating expenses and revenue generation to sustain and potentially improve its operating profit margin in the future. Analyzing the factors driving these fluctuations could provide insights into the company's operational efficiency and overall financial health.
Peer comparison
Feb 3, 2024