How American Eagle Outfitters’ EBITDA Growth Outpaced Revenue Growth In 2015
American Eagle Outfitters‘ (NYSE:AEO) revenues increased a sizeable 7% during 2015, driven by a similar growth in comparable sales and partially offset by the closure of underperforming stores throughout the year. The growth is impressive considering that several of the company’s casual apparel peers have failed to achieve even positive growth in revenues, amid an edgy retail environment, store consolidation, and fierce competition from fast fashion retailers. What’s even more impressive is American Eagle’s 34% EBITDA (earnings before interest tax depreciation and amortization) growth, which was boosted by slower growth in cost of goods sold (COGS), and SG&A expenses. Slower than revenue growth in COGS can be attributed to fewer discounts, thanks to a better merchandise portfolio. And a nominal gain in SG&A expenses can be attributed to lower rent expenses and a one-time gain on previously closed sale of Warrendale distribution center.
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Have more questions about American Eagle Outfitters? See the links below:
- What Is American Eagle Outfitters’ Revenue & Net Income Breakdown In Terms Of Different Operating Segments?
- What’s American Eagle Outfitters’ Fundamental Value Based On Expected 2015 Results?
- By How Much Did American Eagle Outfitters’ Revenue & EBITDA Grow In The Last Five Years?
- How Has American Eagle Outfitters’ Revenue Composition Changed In The Last Five Years?
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