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American Eagle Outfitters (FRA:AFG) Operating Margin % : 9.59% (As of Oct. 2024)


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What is American Eagle Outfitters Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. American Eagle Outfitters's Operating Income for the three months ended in Oct. 2024 was €114 Mil. American Eagle Outfitters's Revenue for the three months ended in Oct. 2024 was €1,183 Mil. Therefore, American Eagle Outfitters's Operating Margin % for the quarter that ended in Oct. 2024 was 9.59%.

Good Sign:

American Eagle Outfitters Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for American Eagle Outfitters's Operating Margin % or its related term are showing as below:

FRA:AFG' s Operating Margin % Range Over the Past 10 Years
Min: 0.23   Med: 7.84   Max: 12.03
Current: 8


FRA:AFG's Operating Margin % is ranked better than
72.04% of 1105 companies
in the Retail - Cyclical industry
Industry Median: 3.61 vs FRA:AFG: 8.00

American Eagle Outfitters's 5-Year Average Operating Margin % Growth Rate was 6.20% per year.

American Eagle Outfitters's Operating Income for the three months ended in Oct. 2024 was €114 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2024 was €398 Mil.


American Eagle Outfitters Operating Margin % Historical Data

The historical data trend for American Eagle Outfitters's Operating Margin % 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 Operating Margin % Chart

American Eagle Outfitters Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.28 0.23 12.03 5.40 6.93

American Eagle Outfitters Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Operating Margin % 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 9.64 7.72 6.80 7.83 9.59

Competitive Comparison of American Eagle Outfitters's Operating Margin %

For the Apparel Retail subindustry, American Eagle Outfitters's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where American Eagle Outfitters's Operating Margin % falls into.



American Eagle Outfitters Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

American Eagle Outfitters's Operating Margin % for the fiscal year that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (A: Jan. 2024 ) / Revenue (A: Jan. 2024 )
=334.53 / 4830.305
=6.93 %

American Eagle Outfitters's Operating Margin % for the quarter that ended in Oct. 2024 is calculated as

Operating Margin %=Operating Income (Q: Oct. 2024 ) / Revenue (Q: Oct. 2024 )
=113.511 / 1183.388
=9.59 %

* 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.


American Eagle Outfitters  (FRA:AFG) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


American Eagle Outfitters Operating Margin % Related Terms

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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 vast majority of its revenue from the United States.