American Eagle Outfitters, Inc. (NYSE:AEO) Q1 2022 Earnings Conference Call May 26, 2022 4:30 PM ET
Company Participants
Judy Meehan - Investor Relations
Jay Schottenstein - Executive Chairman and Chief Executive Officer
Jen Foyle - President, Executive Creative Director, AE and Aerie
Michael Rempell - Chief Operating Officer
Mike Mathias - Chief Financial Officer
Conference Call Participants
Matthew Boss - JPMorgan
Jay Sole - UBS
Janet Kloppenburg - JJK Research Associates
Marni Shapiro - The Retail Tracker
Dan Stroller - BMO Capital Markets
Corey Tarlowe - Jefferies
Rebecca Duval - BlueFin Research Partners
Operator
Greetings and welcome to the American Eagle Outfitters’ First Quarter 2022 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Judy Meehan. Please go ahead.
Judy Meehan
Good afternoon, everyone. Joining me today for our prepared remarks are Jay Schottenstein, Executive Chairman and CEO; Jen Foyle, President, Executive Creative Director for AE and Aerie; Michael Rempell, Chief Operating Officer; and Mike Mathias, Chief Financial Officer.
Before we begin today’s call, I need to remind you that we will make certain forward-looking statements. These statements are based upon information that represents the company’s current expectations or beliefs. The results actually realized may differ materially based on risk factors included in our SEC filings. The company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
And now, I will turn the call over to Jay.
Jay Schottenstein
Thanks for joining the call today. This was a complex quarter with many macro variables to navigate through. Total revenue increased over last year, but was well below our expectations. Lapping stimulus payments and pent-up demand, combined with rising inflation and higher gas prices weighed on our results. Adding to these pressures, the weather was unseasonably cold, dampening sales of spring goods. Higher freight and expenses deleveraged droves and operating profit results that was well below plan and what we are capable of delivering. In hindsight, our buys and overall plans were too optimistic for the current environment. We are taking swift measures to reset. We will clear through spring goods in the second quarter and be in better position for the second half of the year. We have adjusted our forward inventory plans reflect a more measured demand outlook. We are also looking after our expense base in a more meaningful way.