American Eagle Outfitters Announces Value Creation Plan; Targets 15% CAGR Through 2023

(RTTNews) - American Eagle Outfitters, Inc. (AEO) announced its Real Power. Real Growth. plan, under which the company will leverage customer-focused capabilities and continue to strengthen its ROI discipline. The company plans to: double Aerie to $2 billion in revenue; and reignite American Eagle for profit growth.

American Eagle Outfitters targets revenue of approximately $5.5 billion and operating income of $550 million in fiscal 2023, with the operating margin expanding to 10%. The targets exclude potential asset impairment and restructuring charges. Aerie revenue is projected to grow at a mid-20%'s compound annual growth rate to approximately $2 billion. American Eagle revenue is anticipated to remain roughly flat to fiscal 2019, at approximately $3.5 billion.