American Eagle Outfitters, Inc. (NYSE:AEO) Q3 2023 Earnings Conference Call November 21, 2023 11:00 AM ET

Company Participants

Judy Meehan - SVP of Corporate Communications and IR

Jay Schottenstein - Executive Chairman and CEO

Jen Foyle - President and Executive Creative Director, AE & Aerie

Mike Mathias - CFO

Conference Call Participants

Matthew Boss - JPMorgan

Kelly Crago - Citigroup Inc.

Dana Telsey - Telsey Advisory Group

Jay Sole - UBS

Simeon Siegel - BMO Capital Markets

Chris Nardone - BofA Securities

Corey Tarlowe - Jefferies

Alex Straton - Morgan Stanley

Janet Kloppenburg - JJK Research Associates

Operator

Greetings and welcome to the American Eagle Outfitters Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded.

I would now like to turn the call over to your host, Judy Meehan. Thank you. You may begin.

Judy Meehan

Good morning, everyone. Joining me today for our prepared remarks are Jay Schottenstein, Executive Chairman and Chief Executive Officer; Jen Foyle, President, Executive Creative Director for AE and Aerie; 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. 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. Additionally, you can find our third quarter investor presentation posted on our corporate website at www.aeo-inc.com in the Investor Relations section.

And now I will turn the call over to Jay.

Jay Schottenstein

Good morning. Overall, I am pleased with our third quarter performance. Although the macro environment remains highly dynamic, we are seeing encouraging trends. Our brands remain stronger than ever and our strategic priorities are propelling us forward. AEO's customers are at the center of our strategy, driving constant innovation that enables us time and time again to deliver exciting collections, and this fall was no exception.

Additionally, we provide an industry-leading customer experience, reflecting our investments in data-driven insights and operational excellence. With the launch of our profit improvement program, structural initiatives to drive growth and higher margins are taking hold.

Now a few financial and strategic highlights from the quarter. Third quarter revenue hit a record of $1.3 billion, driven by 5% comp growth, reflecting growing brand momentum and terrific fall merchandise collection. Our market-leading brands are true lifestyle destinations for our customers, and that was evident this quarter. Aerie returned to double-digit revenue and comp growth, and AE generated positive revenues and comps.