American Eagle Outfitters, Inc. (NYSE:AEO) Q3 2022 Earnings Call Transcript

But we also have incredible other categories, our fleece categories. They’re like no other out there. I’m so proud of that price value equation that we offer in Aerie, and we’re certainly not seeing any softness there. So, excited about that category and newness. Again, it’s a constant evolution. We’re looking at new ways to deliver the business and market it. We really talk about it but our marketing campaigns in Aerie, they’re so innovative and so fun. And I think it really sets us apart in the mall. So, there’s a lot more to come there I just — like I said for both brands I just approved the spring early sets and oh my gosh, I mean is it fun and new and just feels — you know at the end, I hope we’re going to stand out in the mall and stand for what we do an each in brand.

Intimate certainly again in Aerie is not an oversight. We’re continually invading in our bras. I like what I’m seeing on the go forward. So hopefully we can please and delight our customers as well because that’s what we’re up to.

Dana Telsey: Thank you. Best of luck in the holiday season. Thank you Dana.

Operator: Thank you. Our next question is from Adrienne Yih with Barclays.

Adrienne Yih: Jen, just to go back to your enthusiasm, you sound — it’s the best you sounded in a while. So I’m really excited about that. But it sounds like the supply chain is back to a level where you’re able to test and reorder as well as chase. So I guess my question is, as you go into the spring season, how much are you buying up front versus leaving on the table to be able to do that and read demand? And then for Michael or Mike on inventory. Can you remind us, was up 37% at the end of 4Q, 46% and then 37% again in Q1 and Q2. Can you remind us what portion of that was in transit? Because if we see are your inventory numbers down double-digit, and it was all in transit. I just don’t want people to get worried that you can’t comp, because it was unavailable for sale. It wasn’t very high utility. And de facto, you — in my opinion, I think you’re not going to order excess inventory. So I just want to make sure that messaging — that part of it is clear. Thank you.

Jen Foyle: We’re constantly evaluating our inventory to sales relationship and ensuring that our sales positioning depending on the plan is certainly positioned higher than our inventory position. So that’s what we’re up to, that’s what we’ve been up to. It’s definitely a best practice for both of our brands. And roughly, we leave about, I mean, I would say I’m going off the top, but roughly about maybe 25% open. And as Michael said, we’re just way more flexible right now. We’re able to get goods here, faster and more swiftly. And we’re certainly taking advantage of the supply chain. And we’re leveraging that. So, I would like to say that — what you’re seeing for holiday and these, what we just released as far as our inventory, you’ll see more of the same on the go forward. And with some of the new technologies, we believe we can get even more efficient with our inventory. So, I hope that answers your question.

Operator: Our next question is from Kimberly Greenberger with Morgan Stanley.

Kimberly Greenberger: Jen, I wanted to follow-up on what you’re seeing on trends in the business. If you could just sort of frame the changing consumer preferences, if you’re seeing any this year, compared to last year? And how are those ebbs and flows and what consumers are gravitating to, how is that informing your buying for 2023? Thanks.