GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » American Eagle Outfitters Inc (FRA:AFG) » Definitions » Degree of Operating Leverage

American Eagle Outfitters (FRA:AFG) Degree of Operating Leverage : 26.35 (As of Apr. 2025)


View and export this data going back to 2000. Start your Free Trial

What is American Eagle Outfitters Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. American Eagle Outfitters's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 26.35. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for American Eagle Outfitters's Degree of Operating Leverage or its related term are showing as below:

FRA:AFG's Degree of Operating Leverage is ranked worse than
91.86% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.295 vs FRA:AFG: 26.35

American Eagle Outfitters Degree of Operating Leverage Historical Data

The historical data trend for American Eagle Outfitters's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

American Eagle Outfitters Degree of Operating Leverage Chart

American Eagle Outfitters Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.54 -9.75 153.43 12.68 17.37

American Eagle Outfitters Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.08 4.36 4.82 17.37 26.35

Competitive Comparison of American Eagle Outfitters's Degree of Operating Leverage

For the Apparel Retail subindustry, American Eagle Outfitters's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


American Eagle Outfitters's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where American Eagle Outfitters's Degree of Operating Leverage falls into.


;
;

American Eagle Outfitters Degree of Operating Leverage Calculation

American Eagle Outfitters's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 283.59 (Apr. 2025) / 369.306 (Apr. 2024) - 1 )/( 4893.561 (Apr. 2025) / 4925.018 (Apr. 2024) - 1 )
=-0.2321/-0.0064
=36.34***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


American Eagle Outfitters  (FRA:AFG) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


American Eagle Outfitters Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of American Eagle Outfitters's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


American Eagle Outfitters Business Description

Traded in Other Exchanges
Address
77 Hot Metal Street, Pittsburgh, PA, USA, 15203-2329
American Eagle Outfitters Inc is a specialty retailer. The company is engaged in the retail of apparel and accessories with company stores in the United States, Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has its online business. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel, accessories, and personal care products for women and men. Geographically, it generates the majority of its revenue from the United States.