On March 7, laid-back clothing retailer American Eagle Outfitters (NYSE:AEO),which began trading today on the NYSE under new ticker symbol AEO, released fourth-quarter earnings for the period ended Feb. 3.

  • An extra week of sales helped fourth-quarter earnings soar 40% to $0.66 per diluted share from $0.47 per diluted share, with total sales of $973.4 million, a 14% increase.
  • The company launched its intimates sub brand "aerie" in September 2006 and plans to open at least 15 stand-alone stores in 2007. Management expects Q1 2007 EPS to be between $0.31 to $0.33, compared with last year's $0.28.
  • Join our Motley Fool CAPS community and tell us what you think of American Eagle and its competitors, such as two-star-rated Abercrombie & Fitch (NYSE:ANF) or three-star-rated Pacific Sunwear (NASDAQ:PSUN).

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$973.4

$769.1

26.6%

Net Profit

$150.2

$107.5

39.6%

EPS

$0.66

$0.47

40.4%

Diluted Shares

228.0

227.2

0.3%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

47.9%

46.4%

1.6

Operating Margin

23.3%

22.5%

0.8

Net Margin

15.4%

14.0%

1.5

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$827.1

$751.5

10.1%

Inventory

$263.6

$210.7

25.1%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$171.2

$139.2

23.0%



Learn the ways of the balance sheet.

Cash Flow Highlights

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