American Eagle Outfitters (NYSE: AEO) reported Q4 EPS of $0.39, $0.01 better than the analyst estimate of $0.38. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.11 billion.

• Total net revenue decreased 1% to $1.10 billion from $1.11 billion last year.
• Consolidated comparable sales were up slightly, following a 4% increase last year.
• Gross profit increased slightly to $389 million from $388 million. The gross margin rate increased 30 basis points to 35.4% of revenue compared to 35.1% last year. A favorable merchandise margin reflecting improved IMU was partially offset by higher delivery costs related to growth in the direct business.
• Selling, general and administrative expense of $242 million was flat compared to last year, with higher advertising expense offset by lower incentive compensation. As a rate to revenue, SG&A deleveraged 20 basis points to 22.1%.
• Operating income of $107 million compared to $106 million last year, improving 20 basis points to 9.8% as a rate to revenue.
• Adjusted EPS of $0.39 increased 11% compared to adjusted EPS of $0.35 last year.

Jay Schottenstein, Chief Executive Officer commented, “I’m extremely proud that our strategic priorities centered on product innovation and customer focus have delivered results and greater consistency throughout 2016, despite a highly competitive and challenging retail landscape. The American Eagle brand continued its strong leadership in jeans and bottoms and has experienced accelerated growth in women\'s apparel. Aerie posted double-digit sales growth throughout 2016, fueled by superior merchandise, a strengthening customer base and growing brand awareness. We’ve made great progress, yet we have much more opportunity across the marketplace. I’m confident that the strength of our brands and focused priorities will enable us to deliver long-term returns to our shareholders.”

GUIDANCE:

American Eagle Outfitters sees Q1 2017 EPS of $0.15-$0.17, versus the consensus of $0.21. Sees comparable store sales in the range of flat to a low single digit decline.

For earnings history and earnings-related data on American Eagle Outfitters (AEO) click here.