Executive Summary

• American Eagle Outfitters reported 4Q15 revenues of $1.1 billion, up 3.2% year over year and in line with the consensus estimate. EPS of $0.42 was up 17.4% year over year and also in line with consensus.
• The company commented that 4Q15 was challenging for the industry due to external factors, but that the spring season is off to a good start, even compared with last year’s positive results.
• In 2016, American Eagle Outfitters will focus on improving margins, acquiring customers, and strengthening operations and brands. 1Q16 guidance calls for comps in the mid-single digits and EPS of $0.17–19, above the consensus estimate of $0.15.