Approximately $120 million in first quarter operating income expected, fueled by strong demand and margin expansion

Pittsburgh — (BUSINESS WIRE) — American Eagle Outfitters (NYSE: AEO) today announced that business is exceeding expectations with first quarter revenue on track to over $1 billion, a mid-teens increase compared to pre—COVID 2019 first quarter reported revenue.  Demand has accelerated across the American Eagle and Aerie brands, generating strong margins, higher full-priced selling and reduced promotions.  For the period, management expects operating income of approximately $120 million, compared to first quarter 2019 operating income of $48 million and adjusted operating income of $49 million.

AEO’s growth priorities centered on the “Real Power. Real Growth.” value creation plan are having a meaningful impact, fueling our brands, channels and attracting new customers.  External factors, such as economic stimulus, renewed consumer optimism and pent-up demand are also positively contributing to business performance.

Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer commented, “In light of the current environment, it’s truly gratifying to see consumer optimism, strong demand across channels and loyalty for our brands continue.  I’m amazed by the incredible momentum of Aerie, which is consistently reaching new heights and exceeding our expectations.  We are seeing great progress at American Eagle, with stronger merchandise, marketing and inventory management clearly demonstrating the power and true potential of our leading brand.  Looking forward, I have never been more optimistic about our future than I am today. We remain disciplined and focused on delivering profit growth through our Real Power. Real Growth value creation plan, with our sights set on achieving our 2023 financial targets and generating superior shareholder returns.”

The company will report its first quarter 2021 results for the fiscal quarter ended May 1, 2021 by press release at 4:15 p.m. E.T., on May 26, 2021 and will also host a summary of AEO, Inc.’s first quarter results with a live conference call that will be webcast at 4:30 p.m. E.T.  The foregoing forward-looking statements reflect our expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially.

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About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there’s REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico, and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 200 international locations operated by licensees in 33 countries. For more information, please visit www.aeo-inc.com.

Non-GAAP Measures

This press release includes information on non-GAAP financial measures (“non-GAAP” or “adjusted”), including consolidated adjusted operating income, excluding non-GAAP items. This financial measure is not based on any standardized methodology prescribed by U.S. generally accepted accounting principles (“GAAP”) and is not necessarily comparable to similar measures presented by other companies.  Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.  Management believes that this non-GAAP information is useful for an alternate presentation of the company’s performance, when reviewed in conjunction with the company’s GAAP consolidated financial statements, as it helps identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude in such non-GAAP measures. Accordingly, we believe that adjusted operating income provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to the key financial metrics used by our management in our financial and operational decision-making.

This amount is not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the company’s business and operations.  We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent our expectations or beliefs concerning future events, including first quarter 2021 results. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on many important factors, some of which may be beyond the company’s control. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “potential,” and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 30, 2021 and in any other filings that we may make with the Securities and Exchange Commission in some cases have affected, and in the future could affect, the company’s financial performance and could cause actual results for the first quarter 2021 and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the negative impacts of the COVID-19 pandemic and related operational disruptions; the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity.

CONTACT:

Olivia Messina

412-432-3300

LineMedia@ae.com

Each year, AEO honors one associate who has achieved significant accomplishments, personifies our values and who has left an indelible impact on our company and people. Over the next several weeks we will spotlight the top three finalists for the 2020 AEO ICON.

Meet Michelle, Sr. Director, Responsible Sourcing and 2020 AEO Icon Finalist! In her role, Michelle ensures that factories making AEO’s products meet our requirements for working standards – this means verifying that workers are treated fairly and with respect, and that factories are safe. Michelle led the company’s efforts with joining the Accord on Fire and Building Safety in Bangladesh, a leading industry association on factory safety. She also put programs in place specifically to address female workers’ health needs, which has led to lower worker turnover and higher productivity. Michelle’s role was especially critical in 2020, overseeing that AEO factories continued to provide safe working conditions when they reopened during the pandemic.

In addition to responsible sourcing, Michelle spearheads AEO’s sustainability efforts. She led the development of AEO’s Corporate Sustainability goals in 2019 around Greenhouse Gas reduction, water reduction, increased sustainable raw materials, and waste reduction, which includes AEO’s plan to be carbon neutral in our own operations by 2030. These goals are key in empowering AEO to do our part in helping to save the planet.

Michelle partners with more than 100 cross-functional associates to tackle different areas of sustainability and humbly recognizes that this work is a team effort. This is most notably evident through the 2020 launch of “REAL Good” merchandise by AE and Aerie. Michelle created the guidelines for REAL Good, and customers are now able to identify responsibly sourced styles with the REAL Good badge. This icon is featured on products made from more sustainable, raw materials like recycled polyester and sustainably sourced cotton. REAL Good jeans are manufactured in a factory that meet our expectations in AEO’s Water Leadership Program for water reduction and recycling. Michelle engaged closely with suppliers on water savings initiatives that led to the development of this powerful program. Since inception, factories in this program have saved over three billion gallons of fresh water through water recycling and are making steady progress toward our ambitious corporate sustainability goals.

AEO learns and shares best practices in sustainability and responsible sourcing with its peers because of Michelle’s guidance in joining several industry coalitions including the Sustainable Apparel Coalition, Textile Exchange, Better Cotton Initiative, Better Work, United Nations Convention on Climate Change, RE100, Science Based Targets Initiative, and ILO’s Global Garment Industry Call to Action.

Thank you, Michelle, for your leadership and contributions to AEO! Congratulations on your nomination!

Each year, AEO honors one associate who has achieved significant accomplishments, personifies our values and who has left an indelible impact on our company and people. Over the next several weeks we will spotlight the top three finalists for the 2020 AEO ICON.

In March 2020 nearly all retailers were faced with uncertainty as a result of store closures and shipping disruption due to the COVID-19 pandemic. While the level of change to overcome such an industry disruption would normally take 1-2 years, to course correct, AEO knew it had 5 months to answer this challenge to be ready for peak volumes. The Supply Chain team had a powerful response to this challenge, largely due to the swift action by AEO ICON nominee and Sr. Program Manager – Supply Chain Strategy, Val.

Val quickly pivoted to deploy necessary initiatives to help keep the AEO supply chain moving. First, she facilitated the strategy, execution and launch of four fulfillment hubs that closed the capacity gap created by the surge in online demand as a result of the pandemic, allowing AEO to deliver a strong 2020 holiday season for our customers. Val also led the charge in navigating pandemic shipping challenges by negotiating carrier contracts that ultimately resulted in AEO obtaining the necessary capacity to support peak business!

No matter what it took, Val’s willingness and dedication to our supply chain and AEO knew no boundaries in 2020. Congrats on your nomination for AEO ICON, Val!

March is Women’s History Month – a time where we celebrate and acknowledge the vital contributions of women throughout history. In honor of this month, we are spotlighting a few AEO women to share their stories of professional growth, challenges and accomplishments.

Tech-guru, innovator, opportunity-seeker, wife, mother… those are just a few words to describe Ta Jané (or TaJ, as many of her AEO family call her!), Sr. Product Manager at AEO, Inc.  TaJ attended Georgetown University, majoring in International Business and Marketing and following graduation was recruited to join AEO as an intern. Fast forward nearly 8 years, TaJ’s journey at AEO lead her into the complex world of tech where today she supports the digital product teams in delivering a best-in-class experience for American Eagle and Aerie customers!

What advice do you have for young women starting their careers?

My biggest piece of advice is “just do it!” Do you want to apply for a role, but maybe you’re not totally qualified? Just do it! You want to enter a field you have no experience in? Do it! Don’t disqualify yourself. There are recruiters for a reason, let them tell you no. Get your resume on the desk!

 Why do you love AEO?

The people, of course! I love how creative and insightful people are.

I also love the opportunity. Every opportunity I’ve gone after hasn’t always come to me, but I am always empowered to seek them out. The well has never come up dry for me at AEO. If there was something I was passionate about, my leaders always have my back and I love that about this company!

Each year, AEO honors one associate who has achieved significant accomplishments, personifies our values and who has left an indelible impact on our company and people. Over the next several weeks we will spotlight the top three finalists for the 2020 AEO ICON.

Meet Carlos, Sr. Director of Finance for AEO’s Mexico operations. Carlos was chosen as a 2020 AEO ICON finalist for exemplifying AEO’s core values of People, Integrity, Passion, Innovation and Teamwork.

Under his leadership in 2020, the Mexico team developed strategies to become a multichannel market, consolidated existing channels and launched new ones with an aggressive business development mindset, while also remaining a key business partner for AEO’s Latin America international licensed markets.

Carlos has been a true ICON in supporting AEO goals and priorities. Last year, he prioritized the health and safety of his team throughout the pandemic by supporting the transition to flexible/work from home for corporate associates and re-creating and adapting the International Store Re-opening Playbook for store teams. He drove business results by focusing on strong margin growth, reducing spend when possible and targeting strategic investments. Lastly, he was a key leader in launching the new localized Mexico website in record time and with outstanding results!

With Carlos’ leadership, the Mexico team had a very successful year!

“It’s a genuine pleasure to work with Carlos – his focus, dedication, openness, sense of team & humility makes him an exemplary colleague, leader and undoubtedly an ideal candidate for this year’s Premio al #ICONO AEO.” – Carlos’ Nominating Committee

Congrats, Carlos!

Over the next several weeks, to celebrate Aerie’s incredible milestone of reaching $1B in sales, we’ll be sharing stories about the history and evolution of one of the fastest growing lifestyle brands in retail today! From boybrief undies on a single table in AE stores, to the #AerieREAL movement and the launch of OFFL/NE and Unsubscribed—Aerie has unleashed the power of positivity and inclusivity, encouraging customers around the world to love their real selves!

The Power of REAL

When Jen Foyle, Chief Creative Officer AEO Inc. & Aerie Global Brand President, joined the company in 2010, she brought passion, innovation and the creative spark to lead the team that has made Aerie one of the fastest growing lifestyle brands in the market.

The magic moment came in 2014. After nearly a decade of success, the Aerie team knew their mission of positivity and self-love could be so much more. Aerie was developing amazing product and there was an overwhelming excitement to grow the brand. That’s when the Aerie team challenged themselves: “What else can we do for our customers?”

The creative teams came up with a revolutionary idea of capturing real, unretouched beauty in what we know now as the #AerieREAL campaign.

Featuring models of all sizes in Photoshop-free photos,  Aerie marketed the latest collection of bras, undies and apparel, all while demonstrating that the real you is the best you.

“The purpose of ‘#AerieREAL’ was to let our customers know that there is no reason to retouch beauty, while giving young women of all shapes and sizes the chance to discover amazing styles that work best for them,” said Jen Foyle. “We wanted to help empower women to be confident in themselves and in their bodies.”

The #AerieREAL campaign was an important turning point in the evolution of the brand, which always celebrated its customers’ unique spirit and optimism. By challenging the traditional standards of beauty, Aerie sparked a conversation with their customers about loving your real self. The campaign grew into a mission that continues today.

It wasn’t just all media praise, either. After launching #AerieReal, sales grew 20 percent in fiscal year 2015 . Customers were moved by the campaign, and wanted to shop a brand where they felt the marketing and the clothes represented them.

Aerie became a celebration of authenticity and being your REAL self, away from the traditional, sleek, sexy and risqué models that the intimate industry often highlighted.

“We definitely had a creative moment where the team got together, and we just said, ‘Really, what’s happening today with millennials and the next generation?’” Jen told Business Insider. “And we really felt like girls today are just more independent and stronger than ever. We just knew that it would really resonate with this generation.”

REAL Growth

Aerie’s growth has been nothing short of spectacular since the launch of #AerieREAL.

Over the past seven years, Aerie has nurtured #AerieREAL into a worldwide movement that has touched the lives of millions of women and girls.  From #AerieREAL Role Models, the #AerieREAL Changemakers, to the #AerieREAL Life Blog—being REAL is part of Aerie’s DNA.

By Rachel Besser | Link to article

Like so many others last November, I came across a viral TikTok video on my “For You” page of a young woman, Hannah Schlenker, nonchalantly dancing to Justin Bieber’s song “Drummer Boy” in her kitchen. To my surprise, the video’s virality did not owe to her why-bother dance style—it’s as though she was marking the choreography instead of committing to it full on and she even jokingly captioned the clip, “Yes queen give us nothing.” It turned out that the video’s popularity was, in fact, because of her blue Aerie leggings. Dubbed the Real Me High Waisted Crossover Legging, the pants are made in a lightweight 88% nylon, 12% elastane blend that serves as a second skin and, per the website, when worn, it “feels like the real you!” On Schlenker, the legging’s v-shaped waistband was incredibly flattering to her waist (for the record, it is very small, irrespective of the leggings) and the world took note.

Within a week of the TikTok, Aerie’s Crossover Leggings sold out across the country and incited a new crop of videos in which women with different body types put the leggings to the test in TikToks of their own, showing off the garment’s flattering prowess. And so the cycle continued: the leggings restocked, flew off the shelves, and the waitlist kept growing. “We have sold out over six times and have collected over 156K emails from customers asking to be on the ‘notify me’ list,” says Jennifer Foyle, the chief creative officer at AEO Inc. and global brand president at Aerie.

The hype wasn’t over by the time I got my hands on a pair of simple black crossover leggings in February. I didn’t immediately cave to the craze after first seeing Schlenker’s video, but countless crossover-legging-TikToks later, the familiarity principle—humans develop a preference for things which they see often—ultimately got the best of me and I, too, bought the leggings. And I was not alone; “our community is anxiously awaiting the newest collection of tie-dye patterns that releases on March 18,” Foyle adds.

Leggings are a closet staple that, while polarizing (opposers claim the pants are too revealing and have even launched campaigns against them), have had a comeback amidst the pandemic: they’re simple, chic, comfortable, and they pair well with an oversized button-up. Plus, as yoga pants-adjacent, they serve as a reminder to get in a workout. I hadn’t bought any new leggings that I’d wear outside of the gym in years, so I figured if I were to try any new pair, it should be Aerie’s.

March is Women’s History Month – a time where we celebrate and acknowledge the vital contributions of women throughout history. In honor of this month, we are spotlighting a few AEO women to share their stories of professional growth, challenges and accomplishments.

 2020 changed the course of retail overnight and was a time where strong, agile and operationally-savvy retailers were challenged to stand apart from the crowd. When it came to reopening stores, AEO led the industry in providing noteworthy customer and associate safety while still protecting the in-store shopping experience. The success of AEO stores throughout 2020 was largely a result of the strong leadership of Sunny Woo, SVP- Head of AE & Aerie Stores. Ever since her teenage years, Sunny has worked in retail. And while years in retail couldn’t have prepared even the most seasoned professional for 2020, her firm foundation and leadership expertise helped guide her team through a challenging year.

Over the next several weeks, to celebrate Aerie’s incredible milestone of reaching $1B in sales, we’ll be sharing stories about the history and evolution of one of the fastest growing lifestyle brands in retail today! From boybrief undies on a single table in AE stores, to the #AerieREAL movement and the launch of OFFL/NE and Unsubscribed—Aerie has unleashed the power of positivity and inclusivity, encouraging customers around the world to love their real selves!

Ross Park Mall Intimates Expansion

Named the Ross Park Intimates Expansion project, the team rolled up their sleeves and got to work planning to test the launch of a new intimates sub-brand targeted to women between the ages of 15-25 in early 2006. The Ross Park Mall store, in the AEO HQ city of Pittsburgh, PA, was the brand’s first side-by-side location and after countless hours spent ideating on names, logos, and colors—the team landed on the name Aerie. Aerie means a large nest of birds of prey… like an eagle!

The brand was light, airy and free. The Aerie customer wanted to be comfortable but also trend right. She wanted to look great while feeling good about herself. There was white space in the market for comfy cotton undies for the real girl, who wanted to feel confident but not overly sexy. Aerie wanted to be that solution for her. “There was a lot of optimism around the brand,” said Stacey McCormick, SVP Marketing – Aerie. “100% of our AE female customers wanted Aerie.” After a year’s worth of product development, Aerie was ready to become a household name.

Check out the original brand spot below!

Ross Park Mall Intimates Expansion

Named the Ross Park Intimates Expansion project, the team rolled up their sleeves and got to work planning to test the launch of a new intimates sub-brand targeted to women between the ages of 15-25 in early 2006. The Ross Park Mall store, in the AEO HQ city of Pittsburgh, PA, was the brand’s first side-by-side location and after countless hours spent ideating on names, logos, and colors—the team landed on the name Aerie. Aerie means a large nest of birds of prey… like an eagle!

The brand was light, airy and free. The Aerie customer wanted to be comfortable but also trend right. She wanted to look great while feeling good about herself. There was white space in the market for comfy cotton undies for the real girl, who wanted to feel confident but not overly sexy. Aerie wanted to be that solution for her. “There was a lot of optimism around the brand,” said Stacey McCormick, SVP Marketing – Aerie. “100% of our AE female customers wanted Aerie.” After a year’s worth of product development, Aerie was ready to become a household name.

Check out the original brand spot below!https://www.youtube.com/embed/6DjXhKs9tyY?feature=oembed&v=6DjXhKs9tyY&feature=emb_title

Aerie’s Southern Roots

After the success of the Ross Park Intimates Expansion, Aerie opened its first standalone in the latter half of 2006 at the Haywood Mall in Greenville, South Carolina, followed by two more stores a few months later at River Chase Mall in Birmingham, Alabama and Woodfield Mall in Schaumburg, Illinois. Aerie saw incredible success with stores growing nationwide, further creating the comfortable and casual style that American Eagle had established since 1977. Together, Aerie and American Eagle offered stylish, reliable and well-made products as well as the best retail experience for customers on the market. Aerie customers loved the casual dressing room space, and that there were clothes in store for them whether they wanted to sleep, workout or hangout. It was the perfect store everyone.

Meanwhile, the retailer expects current quarter revenues to grow, compared with the first quarters of 2019 and 2020.

By Kellie Ell | Link to article

Aerie continues to be American Eagle Outfitters’ best asset.

The retailer — parent to the American Eagle, Todd Synder and Unsubscribed brands, as well as the innerwear and loungewear brand — posted quarterly and full-year results Wednesday after the market closed, with Aerie surpassing more than $1 billion in revenues for the year.

The results mark the brand’s 25th consecutive quarter of double-digit growth, with digital sales surging 75 percent during the quarter and comparable sales up 29 percent year-over-over. Activewear was Aerie’s highest growth category, driven by the success of Offline by Aerie, followed by intimate apparel, which grew at a double-digit rate with strength in bras and underwear thanks to last year’s work-from-home lifestyle.

But even as COVID-19 vaccines continue to roll out nationwide and mask and social distancing mandates start to ease in some parts of the U.S. — and more and more consumers feel comfortable attending large-scale gatherings — Jennifer Foyle, chief creative officer of American Eagle Outfitters and global brand president of Aerie, said she’s not worried about the future of the brand known for its fashionable loungewear.

“I’m really excited about that challenge,” Foyle told WWD in an exclusive interview. “We are definitely seeing signs [of demand for more occasion wear]. There’s definitely a jeans shift, for sure. And there’s always tops that need to go with that on the AE side. And the way I’m looking [at Aerie] is, how does Aerie support that [shift] with our foundations and our great intimates business? Which is the core to everything we do.

“This business is not going away,” she added. “Leggings are here to stay.”

In fact, Aerie continues to gain traction thanks to its body positivity messaging and pledge not to airbrush models. As of December 2020, the brand had 4 percent share in the women’s U.S. intimate apparel market, according to market research firm The NPD Group.

“We always just stay in our lane,” Foyle said. “We just hit our billion-dollar mark. I could not be more thrilled. Our goal now is to get to $2 billion and that is increasing our intimates category, both undies and bras. Certainly, pulsing on our new category Offline, which includes sports bras.”

Foyle said Offline by Aerie, the activewear subbrand which launched in the summer, has beat company expectations, calling it a “killer category.”

“We’ve had a lot of brainstorm sessions, really trying to get at the DNA of this brand,” she added. “We’re just really digging into how we show up, like we do with Aerie. At Aerie we do not airbrush and it’s a body positivity brand. So how do we leverage that for Offline and what are some of the white spaces? I always look to the white space and what we do that others aren’t doing. I think we have some really great ideas to continue doing.”

The company opened its first stand-alone Offline by Aerie store in the Nashville, Tenn., area in the fall and now plans to open between 25 and 30 Offline by Aerie stores this year, a mix of stand-alone, side-by-sides and shops-within-shops — that’s in addition to roughly 50 stand-alone Aerie stores as the retailer continues to optimize its fleet. The next Offline location, a shops-in-shop inside an Aerie store in Greenwich, Conn., is coming this spring.

“We’re testing different formats to see what really resonates as we continue to grow and expand this business,” Foyle said. “And we have this beautiful halo effect when we enter a new market. We see [sales] play out online as well.”

Meanwhile, American Eagle’s jeans business continues to grow with a variety of silhouettes and technology offering new ways to shop. Last month, the brand launched an augmented reality jeans shopping guide with Snapchat, tapping “Outer Banks” stars Chase Stokes and Madison Bailey for the campaign.

Jay Schottenstein, American Eagle Outfitters chairman and chief executive officer, recently told WWD that the brand’s ability to resonate with shoppers is why American Eagle performed so well — despite this year’s store closures and reduced promotional activity throughout the holiday shopping season.

“After an unprecedented year, we ended 2020 on a positive note, with fourth-quarter adjusted operating income up 38 percent, driven by strong margins across all brands,” Schottenstein said in an earnings release Wednesday. “I’m very proud of the entire organization — our teams executed exceptionally well. We ended the year in a healthy cash position and took bold actions to ensure AEO is well positioned for future success, including steps to right-size and strengthen our store fleet, while also continuing to fuel our robust digital platform.

“We entered 2021 with momentum and, as reviewed in our January investor meeting, we see significant opportunity to drive Aerie’s growth and deliver strong profit margins in the coming years,” Schottenstein continued. “The fourth-quarter results reflect progress on our ‘Real Power. Real Growth’ plan and provide confidence in our value creation opportunity and multiyear financial targets.”

Total revenues for the three-month period ending Jan. 30, were $1.29 billion, compared with $1.31 billion during 2019’s fourth quarter. Decreased mall traffic and store closures amid the pandemic caused the quarter’s 1 percent decline in comparable sales. Store sales fell 20 percent, while digital sales increased 35 percent, year-over-year.

For the first time, the retailer also revealed individual sales figures at its two biggest brands. Total revenues for American Eagle decreased 9 percent to $943 million, with comparable sales down 8 percent. American Eagle’s e-commerce sales (similar to Aerie) were a bright spot for the brand, with digital sales growing 20 percent during the quarter, year-over-year. At Aerie, total revenues increased 25 percent to $337 million during the quarter, year-over-year.

The company logged $3.5 million in profits for the quarter, compared with $4.76 million in profits during 2019’s fourth quarter.

For the year, total company revenues were $3.75 billion, down from more than $4.3 billion a year earlier, also largely due to store closures and reduced store traffic amid lockdowns. The retailer lost $209 million for the full year, compared with gains of more than $191 million in 2019.

Capital expenditures were $35 million for the fourth quarter and $128 million for the full year. The retailer expects capital expenditures to be in the range of $250 million and $275 million for the 2021 fiscal year, prioritizing customer-facing and supply chain investments.

As of Jan. 30, the retailer had a store fleet of 1,078 locations, or 901 American Eagle, 175 Aerie, 179 AE and Aerie side-by-sides and two Todd Snyder units. The firm closed more than 50 American Eagle stores in 2020.

American Eagle Outfitters ended the quarter with $850 million in cash and cash equivalents and $325 million in long-term debt.

The company is not offering annual guidance, but expects 2021’s first quarter to surpass both 2020 and 2019’s first quarters in terms of sales.

“There were definitely some interesting hurdles in February, where Valentine’s fell on the long weekend, the President’s [Day] weekend,” Foyle said. “There was just a little bit of some shift in the calendar that I think were some headwinds. [But], we pulled back some major promotions in February. So, so far so good. I’m pleased [with the current quarter].

“And from what I see, kids are still planning on going on spring break,” Foyle said. “Maybe it’s slightly different, but I really believe it will be a perfect storm, particularly when those stimulus checks go out; tax returns are going out as well and the milder weather, more schools are opening. And certainly the comfort with the vaccine.”

Shares of American Eagle Outfitters, which closed up 1.27 percent on Wednesday to $25.43 a piece, are up about 97.5 percent, year-over-year.