American Eagle Outfitters Inc (AEO)

Return on equity (ROE)

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Net income US$ in thousands 329,380 170,038 170,038 125,136 125,136
Total stockholders’ equity US$ in thousands 1,766,860 1,736,760 1,736,760 1,599,160 1,599,160
ROE 18.64% 9.79% 9.79% 7.83% 7.83%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $329,380K ÷ $1,766,860K
= 18.64%

The return on equity (ROE) of American Eagle Outfitters Inc has shown a fluctuating trend over the years based on the provided data. From January 28, 2023, to February 3, 2024, the ROE remained stable at around 7.83% - 9.79%. However, there was a significant increase in ROE to 18.64% as of January 31, 2025, indicating a notable improvement in the company's profitability relative to its shareholder equity. This upward trend in ROE suggests that American Eagle Outfitters Inc is effectively generating profit from the equity invested by its shareholders. The company's management may have implemented strategies that are positively impacting its profitability and efficiency, which is a positive indicator for investors and stakeholders.