American Eagle Outfitters (AEO) 4 Dec 242025 Q3 Earnings call transcript

Greetings, and welcome to the American Eagle Outfitters Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Judy Meehan. Thank you, you may begin.

Good afternoon, everyone.

and our Executive are Executive Officer; for and for Chairman Schottenstein, Creative today Financial AE Chief Chief and Jen Aerie; me prepared Jay remarks Executive Director Officer. Joining Mathias, Mike Foyle, President,

included realized Before on current you we our we The expectations in These are or will remind that risk information actually statements. that based forward-looking beliefs. begin upon I may certain represents filings. to based call, statements today's factors differ need materially make the SEC results company's

The for last no third forward-looking or retail November and XXrd law. undertakes information, result ended obligation company by XXXX or to the the the events revise X, XXXX, statements, week and of compared publicly any calendar weeks XXXX. year, otherwise, future XX a XX, the ended to required October with update except weeks as whether are quarter as presented XX results Consistent today's discussion new

Investor Comparable to weeks sales Also, that metrics are GAAP results section. to which and adjusted X, Reconciliations adjusted non-GAAP to during metrics the Relations on our X, tables press results posted is www.aeo-inc.com certain are this XX in GAAP please financial ended the on basis. XXXX, presented XXXX. note release, call XX the November November the at ended a accompanying are both in the weeks the and presented in release, available of attached earnings for website the compared corporate

third Jay. I'll the to turn find also now the call can quarter investor you And presentation. Here, over

good Judy, afternoon, and Thanks, everyone.

year. the performance quarter, strong to first We building report another are half the of positive in off pleased

delivering clearly Our Powering strategy Profitable Growth results. is

long-term AEO transforming strategic are positioning growth we efficient to and execute initiatives, operate on for these As more be and we agile. how we healthy

long-term strengthening building performance. our aimed consistency and is all greater in at profitability This

demand choppiness, while year's our of at operating some through we income growth. efficiencies end this adjusted across momentum the bulk the sales channels, quarter and top guidance. comparable on offset X% we high strong of brands Third last X% expense grew delivered saw positive With and successfully of

Turning now to the quarter. few of a highlights

very progress pillar, amplify Building to for consecutive the comparable foundation as strategic are in the our XX-year on women good our brand #X and gains #X share several denim we solid sixth a olds of of XX- achieved First, Eagle making key for on brand its ages, all categories. and sales growth quarter brands. in American top

opportunity are growth to occasions momentum with new and meaningful Our social gaining after strategies still dressing men's like and go ahead. active fuel casual

led women I'm another achieved are record powerfully growth. proud in anchored of and soft result, $X.X have Aerie of made. to X billion cross engines. with and revenue revenue track so encouraged this strongest also yet With brand market strides continued long-term positivity and remarkable year, momentum empowerment incredibly the in teams the by dressing ages. on our Aerie's unique activewear, growth of positive are continue we DNA comp And authenticity, to by resonate all share growth which

pleased direction Fall American we to quarter. great third in a continued strategic customers. our we and vote our retained fashion than note, no customers. thrilled And this of is heritage brand their There the value to to were our On youth, is brands and the to our validation at addition survey, shopping Piper testament day's yet for in promise of a that are across file destination better top Team again, as our the a see Sandler's Aerie rankings delivering of of a evergreen customer growth in high-quality strong see Eagle

are and pillar, Illinois results expectations. We quality brands of Prussia, seen terrific where and recent in of high-profile tracking results and where represented continue Woodfield, the have our delivering in callouts shopping to in way. well we Pennsylvania for great King strategic line all second invest with fresh remodels modern with and and our take we our our Two experience in operations. to Turning optimizing pride Openings innovate. malls, a

remain committed to our highly platform. we Additionally, elevating e-commerce

are tools well sizing to leveraging tactics like improve customer as We engagement successfully and conversion. new outfitting as

our of down to the opportunities within Finally, third we dollars were line. basis profit executing cost with to X% to discipline, leveraging financial continued XX for bottom efficiencies more SG&A pillar identify points. have quarter-over-quarter, drive

number ongoing will restructuring which for quarter, we stage Mike actions the during set improvement a the on. took of also We elaborate through

cash the in Lastly, our quarter balance and sheet remains shape. $XXX debt. exited with We million no great in

in quarter, shareholders. we are capital this to returning our With this advance we our the growth year, across poised deliver in achieve And to progress expect belt, X operations line and strategic significant third our we our initiatives continued in year. mid-teen our our drive income operating road to long-term map. to under quarters cash successful to investing During brands while allocation priorities, growth with

will guidance have Mike our full to review, as a U.S. incorporates This reflect we strong demand dollar. pressure year quarter fourth caution from Yet, more also adjusted outlook.

term, turn delivering holiday Before season brands remain our on as strengthen commitment and operations. focused strength continuing want powering our while we to the we I it our to over initiatives. our Jen, their long-term to execute of I the on to the strategic In potential underscore near

Jen. Now to over

our value fashion line profit by this unique while underscored to top amplified came equation. quarter everyone. environment, our with Led trend. in strongest afternoon, strategically well our with Demand teams to The flow-through. good with selling performance. strategy, we seeing Overall, quality each working back-to-school I peak maintaining and third drive the price am by executed positive pleased was healthy weeks Jay, month, market trend-right Thanks,

traffic brands and and to collaborations promoted supported We innovative conversion. and selectively our healthy support with marketing

record XX% growing growth So beginning third momentum with Aerie, see marks strong on comps with thrilled continue. yet year. another the quarter X%, building last I'm revenue to result

ahead. about expect we year of our opportunities to remain and revenue the fact, XXXX we In mark consecutive XXth growth, excited

Aerie's with opportunities, strength and and each growth our double-digit exciting dressing quarter to soft just actively most getting we activewear our seventh season. building with we're are X categories which and core be continue across continue These apparel opportunities. to growth consecutive scale achieved offline We on of fuel started. its new businesses category

soft third tees, by In was strength fleece. dresses, quarter sleep, sweaters led tanks, dressing, in the and

gains lines. by $XX quarter, greater into sports OFFLINE are in and In extremely grow new leggings gaining fabrications bras strength market. in see activewear traction activewear, we to as expanding in sleep to attractive we continue styles. We the innovation product core and I In the am highly pleased to saw brought share in third billion

bringing builds, customers. As it's OFFLINE awareness in new of

new bottoms been active fact, customer driver has In our acquisitions. of strongest

intimates. to Now turning

category industry, improve are see we share. sequentially our down I the be month. was pleased While across each holding continues to with to the demand trends

the continue improvement Newness is I am resonating, to holiday see season. pleased and this into

As awareness, in for Aerie, elevated looks we are investments we occasions. it brand highlighting strategy. are we influencer With our styling the our Make build Real holiday and Get accelerating holiday campaign,

In launched marketing addition, for first focused new we the activewear OFFLINE for time.

our highlighted for for we key a brand. famous the differentiator fabrics, Here,

Okay.

moving quarter a last a American pleased particularly year, with business with Eagle. marking sixth was posted consecutive I of back-to-school increase, positive the during comp American to on the Eagle following X% the season. the X% comp Now in strength its growth. third quarter,

continued, I Momentum our in We especially gains pillars. women's pleased are am solid making strategic and progress and share across with on tops. denim

and with increases skirts. categories most in across shorts comps sweaters, fleece, positive double-digit dresses, saw We

seeing denim powerful as of have wear offer categories. are trends social new we improvement sequential outfitting, Within including options greater we across be continues and [ for occasions. fashion into We as activewear. tops a distorting sweaters. knitties ] casual to gain men's and out, dressing focused more and Highlights men's, seen number men's and top share other AE our in categories demo core hold in include mind with of like we

Okay.

and of Your the Bull our With community future where celebrity styles into been about the Life, including we front. ahead season. last NFL, new are spring quarter's have our as And our marketing the continue exciting partnerships into seasons. Timberland, in engage Live we ways. for we look positive, excited on chasing collaborations Product launch are particularly Now and and to we upcoming Red

is season us. upon And the now holiday

seeing highly and deliver on we've hard numerous particularly season. to customer looks this been upon we and response. improvements favorable fuel product great, across wins a focused stores Our have holiday working strong, are are we our brands, had Overall, and

are across progress strategic we fantastic back, our making initiatives. Stepping

wishing top this marketplace. destinations, season. in the unique to combination am and to over everyone a confident the tremendous to Our for potential holiday unlock that, I I'll and brands our our quality, are of we And none we and commitment second is are brands. fashion turn the Thanks see that happy value incredible across right their incredibly path to teams and call with the Mike. focus on

another Profitable strategic of proof remain We of focused and with Jen, Thanks, effectiveness afternoon, the quarter on Growth initiatives. Powering Plan good third the our our everyone. point

positive adjusted we channels As were income demand. across high of operating on guidance peaks deliver Jane, the Jen with some brands end while comps in experiencing and lulls noted, and to able our

in flow-through. have our optimizing As meeting discussed at profit we an business ongoing improving focus our March, and strategy on back

we structure further corporate our in actions cost streamline quarter, took continuing, teams. work moves this to additional third With included the which and our align better

model. from We year, to the billion discussed. operation a million the was of Consolidated related highlights. last a a Hong few in calendar previously to company-owned down a Expanding reflecting also revenue change quarter X% licensed third $XX to Kong headwind made $X.X retail as on

follows This of X% increased I the range the [indiscernible] increase and in income $XX income and a costs Operating calendar. restructuring related million last of with high earlier. the shifted on our guidance. impairment comp $XX $XXX Adjusted our operating to $XXX was guidance included comparable X%, million approximately million headwind included of end year. million of sales line discussed

decreased flat by a reduce operating Gross of margin last rents basis items to last costs and rate lower shift. a and fees certain due increased Markdowns points of profit compared company. and adjusted of to XX revenue XX.X% to calendar to year. leveraged, find retail the flat as digital reflected X% our services, [indiscernible] and result dollars to IMU year. was efficiencies efforts of XX.X% cost and this, was $XXX professional delivery, X.X% driven relatively the year. margin including Despite across last deleveraged gross million The

and including a in services progress SG&A make Teams rate of as maintenance basis These sales. the decreased lower key improvement remain we and as leverage a driven compensation, fees costs, and XX SG&A points lower by are fourth had factors professional and the track across to positive also as impact leveraged line, X% to continuing in focus was on incentive costs. The areas, quarter. well again which

was XX year-over-year, Depreciation points. basis down leveraging

tax up well Consolidated rate Inventory is year-over-year. ending and season. in holiday line inventory quarter second for X% healthy per XX.X%, Adjusted per was the was $X.XX The was the with for third earnings quarter share share. guidance. cost positioned

in investments fuel As our Jay to healthy shareholders. to position cash business as noted, as cash well our us allowed return

million, Third $XXX year-to-date CapEx to totaled quarter bringing $XX investment million.

year full expect the million. in Now to of spend range $XXX to million be $XXX

million Additionally, cash ended quarter million dividends $XXX we over repurchases $XXX through through million bringing returned sheet million. revolver. dividend, of with quarter in third a balance returns total the liquidity, approximately cash year-to-date $XX to strong to approximately We including over and shareholders with share $XXX the and our

Third across quarter efficiencies drive to and our progress pillars. strategy value. strategic brands, shareholder growth continued long-term on our executing reflect fuel remain on looking focused deliver our ahead, results on we business And across our

on Now outlook. our moving to

growth, stores positioned has Black highest during traffic periods, Customer and season. response volume Friday selling history. well the prepared weekend we're mentioned, and experienced in Jen of key holiday positive our for in store when some Thanksgiving positive double-digit and we including comps been As

seen in consistency business last relative to our year. direct less However, we've

cognizant remain also of We selling during nonpeak periods. potential choppiness

outlook As year's comp quarter X% comp revising fourth be result, increase. we're last to approximately a on up X% reported our

With previously be million calendar X the week, shift impact X%. noted, retail total is $XX selling down expected the as and revenue adverse from less to

million the retail $XXX in U.S. in drag to recent calendar operating currency This incorporates dollar $XXX from million. strengthening to expect from be to in a the shift. the addition pressure We income the range million of $XX

the quarter. and which enable efficiencies to across savings leverage the SG&A remain driving finding on in us P&L, We focused cost will

X%, For teens This teams increase back remain of on million range revenue income with last in year. delivering quarter. and income total long-term high in this comps the implies the focused announced adjusted growth operating algorithm year, up the mid- up $XXX The our million, to the X% to $XXX operating consistent in March. is from mid-teens of $XXX an million

under and up taking open our in We to Growth that, it we the for Profitable iconic are confident decisive we'll strategy brands are profitable for questions. steps success, enhance consistent growth. further our operating Powering deliver with And position efficiencies

line the from Our Matthew question first Instructions] [Operator of Boss comes with JPMorgan.

next any off, what demand So of maybe pace as category? to progression seen you see across we the you as what Aerie? look two Maybe the of you terms quarter the by potentially opportunities look to the at ahead or growth in are assortment to could at to the fourth into of Jen, year, start Aerie speak store you've And outliers accelerate the fleet?

Look, is Thanks. our that's love Aerie we're mentioned, time, something way pillars. brands a I consistency QX, company, in strategic such on revenues the I've showing Yes. as done and delivering record hasn't been which growth, are I that saw all Matt. never including thinking building and about what in I think X we in this seen into, long

with X really we're Moving the into Aerie, the on comp pleased XX. look,

weeks. Mike just just of and want we some bit of Moving in to cautious want holiday, strong really be into results. couple little seeing to We we're choppiness a a mentioned, deliver

same thinking we're new about at categories. But time, the

and QX. thinking is that that back -- So learned we something in

a be deliver new dipped their as So hasn't category has We've to speak offset that. it think will just that and toes been thinking QX. to exciting something category into spring, that swim. we business, chased been into spring, us me into very be let outstanding. I something take about new really about a to a for moment and we will Aerie that It chasing Sleep

of only stores. Look, year, Aerie X has opened potential This lot a growth. we

increased that. the job We're And the we new will into brand incredible way, these amazing Next halo march going a are making that the strong about that our on And think new year, now. on And acquisition campaign is did saw XXXX strategies, in we increased opportunities. and right really business, what an a investment the QX, just customer impact we're based where team XX, have acquisition means opening awareness, by get to know marketing influencer we right? change. we believe all brand I increased customer category as for effect and delivering that

your And Great. quarter? Maybe year. drivers into to And then your with overall see in what a health remaining for expectations Mike. you follow-up relative the as we in inventory for speak saw quarter that just gross that, third of fourth promotions you next And today. of maybe you just to margin expansion could the look maybe

We positioned brands at to receipt across start of with some the -- Inventory year, than the did strike. there's inventory. X% up pull I'll Yes, timing differences definitely end well mitigate port up last quarter, very and categories. looking any potential

comparing receipts a that's apples the little with and the hit we So oranges some of of quarter. the that bit third of at an end

last third were And change we into the chasing then a year, reminder quarter. trend

was inventory bit. down So a

year. mid-single down were we think last I

basis. So X-year we're kind of relatively a flat on

are So season year. is planned well holiday brands inventory level, categories. this across we similarly and to positioned Promotional last

So more markdowns to we're erosion not additional expecting year. from be any from having impact promotional real or margin this

X.X over Friday Black I through last And even period weeks this actually last weekend. the we've think that through peak seen and Thanksgiving

forward, really P&L, X% -- at revenue X% indicating. as be about we work in expenses at We'll chain at margin the teams the across and the on and to margin efficiency, the focus looking then more within algorithm, delivery, hard gross IMU go need supply distribution talk this finding and gross well. costs our margin it's efficiencies to nothing gross promotional So this leveraging

expenses duty, those as target P&L, apart margin. cost so That on all very still view our the development, reduce been multiyear to basis we've also and March and of out the and cost, a achievable. our pulling in materials, is Somewhere the we to in XX% within are areas put on else very it set cost freight we sampling the focused we're on where back XX% raw landed gross transportation, focused

Our next with the question Citigroup. comes Paul from line Lejuez of

on to at to bit there's second, that want a are necessary understanding shift for SG&A, perform of a November, you've understand line? about did is quarter-to-date the SG&A what as little your Just of comp that that Mike, this And relative we how point see the impacting next choppiness then year, expectations sort leverage you're seeing just brands? thinking to that seen better each think we leverage calendar period curious

think being really of we've end provided off of Yes, of at contemplated for as when lull the some of in coming August, guidance August, you back-to-school described we about cognizant and peak choppiness end September, or choppiness, gave for we the it, October. of saw guidance in that if were the summer we the we QX

warmer October. of why the X to a little couple comp we that the -- our X guided lower X on a weather, but of November. September, came those continue in think hurricanes, the end, reason versus we pieces I in early different warmer The they into weather, the to at impact

first we the as to similar weeks we've the pattern. peak So saw we got been with then the back-to-school And a into similar pleased X.X and the November, of of couple business. really Thanksgiving weeks period, so, last or

X just maybe it's the of And to have here, Christmas point. what and that moment. ability release post where the or are X our sales So at we to the that at see at January at learnings looking recorded taking last holiday could the we that months to update date really applying beginning see from with we

The line items. we huge very be in year, SG&A managing teams focus focused. are to continues next those SG&A the all are For a place, organization. across big

corporate services, in continuing off those optimization compensation, not We continue reductions labor, going supplies, talk and take and gas to are areas. the to our we costs, foot maintenance around store about and find to

end low more to intend that the leverage and X% to, sales committed we're to the X% at So will end. on algorithm we on leverage leverage of we that just

Barclays. line comes of next Adrienne the from Yih with Our question

some bringing of for XX/X AE in brands Angus like Curious Eagle mentioned new customers to on if the and uptake, you Aerie, categories I particularly know and but in? new American also Kelleher the Yih. you're curious if is you could has seen Adrienne This the adjacent AEXX?

brands as Yes. to Actually, acquisition. are referring I combined as up both customer far double was digits

launched Live campaign. life and results. if modern think with of Your was So AE, proud that. to way, just really our I brought such in really a campaign, back pleased we original And those it We about we're Life which our

are influencers, just really before. Some of simply and speaking were haven't there collaborations And tactics man really to where working. our these the doubling down collaborations, we

earlier speaking on noted fantastic. the We Timberland it points. was

in collaborations Now think that to up we ahead, new doors was so I an with have really really we're spring. going that continue now are to retention growing acquisition look for and new want many growing. we that and And something the we these us. open past, staying retaining to American for Eagle down They're us reiterate in Also, happened with our there customers. And with hadn't issue and the the brand, I exciting the longer doubled customers.

also we King stores. bringing upticks that's seen in We're fantastic. are customers. and Jay numbers We've in renovating nice of renovations store wow, the Prussia, new the really new mentioned

more We're mentioned to next saw So XX opening Aerie, customer renovate opened acquisition. we're acceleration in X next I year. going this they in stores we year, where again, year. new stores only

in lots this momentum there's So to the continue. see work

of comes with Our the Sole from next question UBS. Jay line

category sort little impact the the of can competitive landscape the FX Mike, talk guide? bit And two Jen, year on for quarter you just and more question, just and My last quantify you. you the developed how X months? you over a saw saw full the the you then, on what also about One, can denim

share. fashion. excited Women's definitely maintain going men's legs were in through and Well, particularly fashion. that about what delivered reiterate long QX. -- women's was some we We're on Yes. in both softness holding I'm in really helped more There our to

that continues. so And

denim no into In that chasing tomorrow seen QX. like fact, And women's team we've right now. accelerate is

is checking great and QX. developing and an fits, fashion is all such in Our and seen and job, have new new into team never fits accelerated the we outstanding variety our new silhouettes. I've a fabrications assortments, doing

guide impacting the Yes. dollar the over FX, especially of the several bit quarter, here peso is a our what's of our -- dollar Jay, significant here for U.S. the both the impacting the peso. strengthening the Canadian fourth months last and

really and over Our the fourth at business is quarter in from digits Mexico in the XX%. locally, growing is healthy, double Mexico contribution

projections over And combined you sure million changed election months, that's Mexico outcome. about recently our mostly from having that's the adjusting several and impact last the for with in So the mostly from to peso. $XX account We're quarter. that through a more the for even -- fourth

here [indiscernible] half So to quarter of fourth about change is our for term. guide kind of long related the

Our long-term there. issues targets, no

mitigation going We be market. the specifically other reductions, some are expense to for through looking in

the long term, for guide concerning but of and piece nothing annual definitely fourth So this a changes. quarter

Thank you.

from Telsey question Our comes Telsey with the Dana Advisory. line of next

digital have either the you the difference the as And about quarter think business are did the the an on much with quarter? just between went the they there And performing versus as for think you how any XXXX As hurricanes and their the was through them? two that brands? stores, initial you any remodels about how for And thoughts on impact as base? lastly, you're doing,

I can said, so seeing great results, Jen remodels. We're with the as from the far. program start

the XX-ish Seen we're the comp So -- the outpacing remodel AE this AE stores consistent the year nice brand. the the touching store very board stores program year. base results the across some where average plus of brand. for or end We're those is first by performance here for into

XXX it's go next going stores, means the encouraged a and that about XXX As bit about we're going year. forward, maybe plus for what into that to store we program, a accelerate talked

Milton a surprised. hurricanes little So up that last Carolinas. want a investment to comp little to bigger a it's combined Hurricanes, faster. even Helene kind seeing definitely back-to-back I impact think the a yes, talk of I for a perspective, and than good payback what go year the a impact were into from about thing. Southeast of happened to and but bit there and the we hate We're the

just in the the general all October and was of the and bigger way half across So hit, weather of a even back but a weather warmer through early impact the I November. September in think bit

frankly, of us I coming in low that a end the our So than terms of versus quite comp just issue X%. the think hurricanes, X% the on was QX bigger in versus in -- expectation

Yes.

both brands channels. I comped think across positively third and quarter, we

traffic was were stores positive on that stores was X%. So through recently week in tremendous. seen past positive. this More Digital we've here,

our growth So and our store results. store

As remarks be some over I terms said week in into my that in performance weekend, the like store could of a historical looks that bit. continuing highs this

bodes we'll So that well us. for see

very we of We in have got transactions they a come. the take back have bit a -- a That healthy we'll could to store fleet. maybe for little but here. our shift mall even holiday the We've wherever be a favor,

TD from comes with the question Cowen Company. Kim of next line & Our Jonna

to would think to down Though the OFFLINE. about really It accelerate but and about share, growth doing how that Aerie But on as just are is hear still And regain look next held thoughts mentioned love intimates I you it's business, intimates you also and into you strategy. category that what planning like the you year? there? you looks as would sales business your well. love then can accelerate are share ways we

it's Well, sports seen nice shares Yes. really OFFLINE, in with interesting in increases we've bras.

our share. done a happen. continues sports been that tops Girls that's out that to that we've held trend. well down big total, but think we've And bras it's yes, play are I addressing again Intimates, trend. for So as wearing really in and

nice as in QX seen into acceleration, increases as far particularly we've fact, In undies.

there growth category. some unlocking that in really We're

not have as team far of think the go as innovation, some On of does SMOOTHEZ, If stop this look, and in we about we now best you think forward, have the that category. I

body suits. We have

do double famous going the to down continue we That's are for. what that we fabrication So on we're to well.

QX think it. one there's intimates certainly I with the trend in is is a one The QX, this opportunity going So and look, team's business. Lace and And category. Lace obviously into there. out on

So we there'll see more I growing in to ideas have the behind our we that store. to continue those be new some of with holding have share, come. if lots us not ideas and

from Our next Kloppenburg Janet with question JJK comes of the line Research.

any and And colorful to do you of just more the little clear, to balances stores? wanted heard in could stuff. bit like I can weather, that maybe about could that, have thought of have with sell of any sweaters inventory I Did beyond more perhaps the kind learn a I had I and saw down which that and the of like loud a that color choppiness. lot of the

And to I November, understand about wanted Mike. more

that and was SG&A think third maybe some And picked I SG&A? the steal could and said. that's what fourth said you've choppiness you quarter clarify November of great until I the sense? does weak, does on up. Thanksgiving, you then you had think if it And Maybe the quarter, performance that from

Yes, course. of

think just some instance, with I we in Mike said again, just what we're well, happens slowdown of it anticipating the that January, hurricane. saw, for during the

both in deliveries mentioned. The left on store in already new the I sales, QX. we We've again. QX just trending That including like team stores it. and today into We've like For from outpaced We is legs in have upticks very brands categories filling that and heading instance, definitely long are nice seen seen land. right. is

said it for We've think quickly turns, never as let's I for Friday But not is like again, replenishing and execute a beast that the well, team do that, store fast our fire. and is great I record deny, And breaker back feeding getting was as Mike business a job are that. speaks we that So sales we possible. into business. like doing how Black it. seen on us. well

thing. most the I think important that's

malls, brand in our were are executed, bags we everywhere. our When the

You're of front are of fulfilling lines the needs in us. lot the moving, the customers, and we a have

we bit grab to hoping can. we're So every

slowing the down. so business behind understand And trying I'm Jen, digital your what happened to thoughts is there? What

we're honestly, said. -- the side incredible we're up balancing just that of business. what And We're look, comps on Mike against

customer We the where going at. are to is

but we're digital, are look, learning we're And relentless, thinking new day that my in for every testing So there we is. customer the word, we're We're not tricks. favorite It's where business. and

effect, acquisition, going new And really get of bridge gap. this to I think, we from the that we're as some halo

have again. was to we pulled cyber some is a So honest. we for We slowdown earlier. the lot during there's I I I think showing of in, digital more now, to up saw it nice do of be And a launched always. future. right upticks think we There think and early, ideas ideas good And the because

it So by day a day. little now getting bit back we're back

ahead, sorry. Mike. I'm Okay. Go

I'll question. answer your

that. Now point I continued here we is a The of QX outcome doing the of reduction all further to was the talk another QX work. a the the we're We we than focus what to improvement focus all -- work in areas little proof the able few -- other SG&A through the stay. were about leverage. seeing beyond compensation-related is to to continue just mean, reduce expected find the dollars SG&A anticipated, a areas,

salaries So incentives, well compensation, have related services been controlled, corporate leveraged. store

And is down with to down actually X% even high the expecting be dollars single, type We're mid- expecting being to calendar similar continuation. a shift. leverage with revenue QX total

So focus it's here is to stay. there, and

the comes BMO of question Our next line with from Simeon Siegel Capital Markets.

end for to I'm are holiday Is Curious left the to has lead what if I general buy And year open maybe it, are inventory? And but versus been how It sorry prior Simeon. times much how for now? with you your planning years? missed

first... were the on You Sorry, a little you that? can repeat choppy

Yes.

open years? where to just much lead now prior holiday for times now how and So left been has then are versus the buy

Yes. We I an buy, to mentioned. positioning new receipts, like were just open strategic, not but even

Actually, we're in last releasing out there answer. we're both digital from hit demand my to stores. receipts launching is there speaking just as new have that ready the brands We because today,

to ready go. we're So

have new We here. receipts

coming delivery that. towards We the excited December, really have end another full about of in

as We to have pulling buy. actually open we in We're speak.

we're We're to good. be to So inventory about be our and and going really we're to and to how have we spring ready very go. nimble, sell thinking feel going ready

as think we're launch to can into and see spring, excitement incredible going I you're brands I across So were both That's we really positioned all say. nimbled.

great And a I've we're the good on never the in a always so is doing position. good react business, they're job. swiftly and Chase thing, a seen and team

to line going that continue That's the the And mentality plan, with planning sales into spring in at and moment, spring we'll growth. and next inventory do our in year.

of Chris Bank of line the America. from comes question next with Our

next up ramp about up is openings to next more pace Aerie step just plan So introduction confidence giving you to the this year, continues relative what see is year? from you enough sizable any the swim you a to count pressure business the sleep muted of on business, the if your Jen, year be just door the on recent can may the to to challenging this category? it potential And offset just your talk

I should dresses, categories just dressing in fleece, momentum Aerie sure. incredible soft in cover-ups. new Yes, seeing We're all tops, of like It's on. sleep. knits, add not

head season. spring lot So into more see the that you'll we assortment as a of

slowness really way So I our in to offset plans feel about the swim. positioned we any good

well, Aerie categories enough, Interestingly are did share in the market say. apparel, all categories, our our held but pressure that the X market in hold all seeing I should -- their intimates entire But those we since across category, every of intimates, business. are share

actually our openings. and neck were store amazing. good offset is about very attacking OFFLINE to neck This brand-new a similar we and confident they is about That Aerie our that other businesses feel It's So business. malls. feel with said, spring. for

only. now want in during OFFLINE business. sports We're online remind highs our business legging record bra launched seeing COVID our I in you, and XXXX to

So I have still. And I love new Aerie in markets. And They're new we are stores market about cool. know into still money stores new is we We opportunity our say, making The feel store profitable. about hitting definitely it's design gate. can profitable. are very pretty Really go. it. They're moving must mentioned, these performance. the excited OFFLINE out Mike Aerie, like the of we just growth.

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I feel excited think it. about would everyone

seen there, business We way were really haven't them we efficient build you it, and profitable. are seeing they those new nice definitely out. stores, we're get the on and more If out

things So future. for the happen to some exciting

in to support Jen OFFLINE is XX been acceleration said stand-alone, just We're store the count. Aerie X count the looking Aerie or well. that for upon of more this being within doors XX count brands doors that with the XX so doors support that. kind the as side-by-side total store of which we've or combination stores, OFFLINE next stand-alone, opened -- we're to XX beyond year probably And more build accelerate higher to year, there

seeing highest share trends business the strides OFFLINE of the category We're in of gains. terms has been company. kind great for here market growth This

next So it's strategic even really to year. into that going a further support

comes question with the next from Alex Our of Straton line Morgan Stanley.

Straton. you of ask, how particularly color administration helpful? you This give want Katie thinking Delahunt the your on on there on are to Alex could impact I exposure about the be just is Any manufacturing for new tariffs. kind really of would

We're Jay. our in is operations. This Okay. very flexible

ability to We like source have the anywhere.

in through XXXX. around Just everybody, were to remind XXXX we

living have knows and new going policy sure with exactly it's XXXX, happen. to is on, us. And what's So to and in been still tariffs flexibility. tariff that for We've this in change going we nothing nobody

we way. lean we So are that flexible are and

countries manufacturers. Yes. We've sourcing great and with XX-plus our strong sourcing already We got relationships partnerships a capabilities. sourced team, from very with

I think, the redundancy doing proactively as shift outcome. the see So depending team is and at to we're internally together and looking ability setting a job this in great up we on fit, in the

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Right.

what setting ourselves ready to occurs. react up we're to be regardless So exactly of

from Retail Our line of the with last comes Tracker. question Marni Shapiro

you a quick give did Aerie And want stores as well? have to an year on like just stores Eagle couple you I just estimate confirm, next can 'XX? would of for look us in I what and say XX questions. OFFLINE

side like I Aerie be side. and combination be would these OFFLINE stand-alones plans. updates talk store preliminarily, Yes, going looking all specific for Right And XX XX which would about XX to doors say we it. think those of total, 'XX We'll and stand-alones when at when by color very to XX a a talking then a stores because in Marni, roughly. now, and bunch Aerie We're March stores guidance be we're more doors, we're of OFFLINE I capital spending, provide of could counts, refine

still be what in maybe chunk this that could would we've repositioning on XX stores. because success XX closure And or focused we're of closing less doors our been situation, in bunch internally It still but program, markets, we're be especially side terminology seeing remodel -- we're similar, of stores a those be X something good net markets. a when X Probably We're do store we and call stores, we the at though. XX AE, looking really could range, a that by for side.

we're over touching probably we... results total, XXX So as accelerating XX the we're looking to to on year that seeing. stores just in be this we're based Could XX that

better [indiscernible] locations

better that. getting we'll positions where it be and at rightsizing, could repositioning, looking we're we refine next sense, year, makes And it but over XXX

That's good. good, it Black I if great. your stores Jen, was could of are And sounds like almost When Friday. a now. then, they're right tale businesses really in -- X things we

I sent pictures. You know

literally Gremlins the Your bags They were through everywhere. were mall.

So is lot -- leading the had me, a to store. the -- choppiness you of sweaters

You of warm had a lot weather.

it's warm products because so possible a to feels reception in concerned of is if of have very sold To two really I'm really all came be Janet's How point, the And about would weather-driven to you those quickly. you really January? your fashion much case, really why this I lack attribute to the guess, we January, I things. you're but mean So inconsistent just you're very, that putting when can getting it it in, good store? the demand? trying

against It's understand. comps great growth quarter-over-quarter a incredible seeing we're for I brands. We're last all Yes, year-over-year, Like Marni. this up year. from call,

that been done, something brands. hasn't right should all of and that that's been be It's think now. something proud I we've on been working we

think of just AE stage forward of really it's has double and begun. it on at our time a all down of these new learnings. only for take to I Now growth, brands Aerie's really the pinnacle

seeing plans going in But with to some some I think spring, you're lot we excitement more We think I see ready have opportunity the a in acceleration have men's. men's. for of We're there.

cyber, just was we're similar what are with over what we we election. preparing Who look, But about I obviously look, being being what And seeing to want deliver, we all. on We're the just There thinking do. And that. we're knows snowstorms. seeing. of smart, choppiness all. we're smart. We're that's some out that's just ourselves. And to That's mentioned like we coming want seeing just early

And of we And the the session. we have end have question-and-answer we reached the participation. call. reached you thank for also And your of end today's

You disconnect time. your this day. at Have a lines great may