As a note, due to the significant impact COVID-19 had on fiscal 2020 financial results, our first quarter fiscal 2021 results are compared to the first quarter of fiscal 2019, which we believe is a more meaningful comparison.
We had record first quarter revenue of over $1 billion and the highest first quarter operating income in our history of $133 million, which was up 170% from 2019.
Starting with our first pillar, accelerating Aerie to $2 billion, this quarter provided even more evidence that Aerie is the most exciting brand in retail today.
On nearly 90% revenue growth, operating earnings rose well over 700%.
At this pace, we expect to hit our $2 billion target faster than expected, fueling significant earnings growth.
We are reducing water, utilizing more sustainable raw materials and reducing energy to ultimately achieve carbon neutrality in our own facilities by 2030.
We know sustainability is important to our customers and [Indecipherable] on our commitment to social responsibility and I&D, this month we awarded our first 15 Real Change scholarships for Social Justice.
At this pace, we expect to achieve our 2023 goal of $550 million of operating income way ahead of schedule.
Sales rose an incredible 89% from 2019.
As aerie.com becomes a go-to destination for our customers, the online business more than doubled, posting a growth of 158%.
Store revenue increased 36% with about one-third from new store opening.
Aerie's active customer file expanded approximately 40% as we entered new markets, and we increased engagement on social channels, including TikTok where we saw tremendous response.
Sales metrics were strong across the board, and notably our AURs were up 50%.
A significant reduction in promotions contributed to an over 700% increase in operating profit and a 23.5% operating margin.
This quarter, we saw a 39% increase in operating profit, with operating margins rising 20.8%.
We are also pleased with the improvement in sales, led by a 20% increase in the digital business.
Customer engagement was up 2% with new digital acquisitions up 17%.
Our revenue rose 57% from 2019, producing incremental revenue of $150 million in the first quarter.
Further fueling an already highly profitable channel, digital penetration increased to 40% of total revenue, up from 30% in 2019.
We improved our mobile experience and redesigned our app, resulting in 70% increase in revenue from total mobile.
Fleet optimization work is under way and we are pleased with the initial transfer rates from recent store closures, which are running well ahead of our 40% goal.
Nearly 1 million new customers have been added since 2019.
In the first quarter, we leveraged e-commerce delivery expense, had fewer shipments per order and delivered to customers 1.5 days faster than in the first quarter of 2019.
Revenue of over $1 billion and operating income of $133 million marked all-time highs for the Company.
Consolidated first quarter net revenue increased 17%.
Across brands and channels, sales metrics were exceptionally strong with our average unit retail up over 20% fueling a healthy transaction value.
Digital revenue rose 57%, with Aerie up 158% and AE up 20%.
Online sales for the quarter represented approximately 40% of our total mix, increasing significantly from 30% in the first quarter of 2019.
At a brand level, AE revenue increased slightly to $728 million.
AE's operating profit jumped 39% to $151 million and the operating margin expanded 570 basis points to 20.8%.
Revenue increased 89% to $297 million.
Operating income hit $70 million, rising over 700%.
The operating margin expanded to 23.5% from 5.3% in 2019.
Total consolidated AEO gross profit dollars were up $111 million or 34% compared to the first quarter of 2019 and gross margin expanded 550 basis points to 42.2%.
SG&A leveraged 40 basis points as a rate to sales.
The dollar increase of $34 million from the first quarter 2019 was due to compensation in line with our performance-based incentive program, an increase in corporate salaries and higher variable selling expenses, partly offset by lower travel expense.
Operating income of $133 million increased 170% compared to $49 million in adjusted operating income in the first quarter 2019.
The operating margin of 12.9% expanded 730 basis points, marking a 14-year high for the Company.
Corporate unallocated expense increased 29% to $88 million, primarily due to incentive compensation.
Adjusted earnings per share was $0.48 per share in the quarter, marking a record first quarter outcome for us.
Our diluted share count was 207 million and included 34 million shares of unrealized dilution associated with our convertible notes.
Ending inventory was up 2% compared to the end of the first quarter of fiscal 2019.
American Eagle inventory was down 15% due to continued inventory optimization initiatives and significantly reduced clearance levels.
Aerie's inventory increased approximately 50% versus 2019, supporting the strong sales growth, new stores and product expansion, including OFFLINE by Aerie.
We ended the quarter with $792 million in cash and short-term investments.
Even excluding proceeds from the convertible bond issuance, our liquid, cash balance is up $36 million versus 2019.
Capital expenditures totaled $37 million in the quarter.
For 2021, we continue to expect capital expenditures of $250 million to $275 million, in line with the average annual target we shared at our investor meeting.
The vast majority of our 2020 renewals were short term, resulting in almost 450 leases coming to term in 2021.
This year, we plan to open approximately 60 Aerie stores and over 30 OFFLINE by Aerie stores, which will be a mix of stand-alones and Aerie side-by-side locations.
There is still uncertainty ahead, but as we reflect on our 2023 targets provided back in January of $5.5 billion in revenue and $550 million in operating profit, we believe we are on pace to achieve the profit goal this year, obviously well ahead of expectations.
As a reminder, our reported second quarter 2019 results included a $40 million benefit to revenue and $38 million benefit to operating profit from the termination of our licensing partnership with a third party operator in Japan.

Summary:
As a note, due to the significant impact COVID-19 had on fiscal 2020 financial results, our first quarter fiscal 2021 results are compared to the first quarter of fiscal 2019, which we believe is a more meaningful comparison.
Digital revenue rose 57%, with Aerie up 158% and AE up 20%.
Adjusted earnings per share was $0.48 per share in the quarter, marking a record first quarter outcome for us.
For 2021, we continue to expect capital expenditures of $250 million to $275 million, in line with the average annual target we shared at our investor meeting.