American Eagle Outfitters 2001 Annual Report Download - page 16

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To Our Stockholders,
Fiscal 2001 was yet another record year for American Eagle Outfitters. For
the sixth year in a row, we achieved record sales and earnings. The year
presented a challenging environment that began with the onset of a recession
and finished with the shock and continuing fallout from September 11. Despite
this, our net sales increased 25% to a record $1.37 billion and same store
sales increased for the fifth consecutive year, rising 2.3%. The AE brand
continued to gain market share, making our stores and our website a dom-
inant destination for 16- 34 year olds.
We ended the year in excellent financial condition, well-positioned for
future growth. Our net income in Fiscal 2001 increased 13% to a record
$105 million or $1.43 per diluted share. Although we spent $119 million in
capital expenditures to support our growth initiatives, our cash and short-
term investments increased by $64 million to a total of $225 million at
the end of Fiscal 2001. Working capital was strong, with current assets
covering current liabilities 2.5 times at year-end. Our Fiscal 2001 return on
average equity was 24%.