American Eagle Outfitters Inc (AEO)

Pretax margin

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Earnings before tax but after interest (EBT) US$ in thousands 442,234 239,858 239,858 178,494 178,494
Revenue US$ in thousands 5,328,650 5,261,770 5,261,770 4,989,830 4,989,830
Pretax margin 8.30% 4.56% 4.56% 3.58% 3.58%

January 31, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $442,234K ÷ $5,328,650K
= 8.30%

The pretax margin of American Eagle Outfitters Inc has shown a gradual improvement over the analyzed period. As of January 28, 2023, and January 31, 2023, the pretax margin was stable at 3.58%. It then increased to 4.56% on January 31, 2024, and remained at that level as of February 3, 2024. The most significant improvement occurred on January 31, 2025, with a pretax margin of 8.30%, reflecting a notable increase in profitability before taxes. This upward trend in pretax margin indicates that American Eagle Outfitters Inc has been effectively managing its operating expenses and generating more income relative to its revenues.