Executive Summary

• American Eagle Outfitters reported adjusted 4Q16 EPS of $0.39, versus $0.35 in the year-ago quarter and beating the consensus estimate by a penny. Revenues were $1.10 billion, down 0.8% year over year and slightly below the consensus estimate.
• Comps were up 0.4% in the quarter, comprising a 1% decline for the American Eagle total brand and a 17% increase for the Aerie total brand.
• The company’s 1Q17 guidance calls for comps to be flat to down by low single digits (versus consensus of up 0.5%) and adjusted EPS of $0.15–$0.17, below consensus of $0.21.