# EDGAR Filing Document

**Accession Number:** 0000919012
**File Stem:** 0000950170-23-005566
**Filing Date:** 2023-3
**Character Count:** 42957
**Document Hash:** f9a2f438a8d66f5baf2d2f76d12c0c09
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-005566.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0000950170-23-005566

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230301

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AMERICAN EAGLE OUTFITTERS INC
- **CENTRAL INDEX KEY:** 0000919012
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-FAMILY CLOTHING STORES [5651]
- **IRS NUMBER:** 132721761
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0129

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33338
- **FILM NUMBER:** 23694065

**BUSINESS ADDRESS:**
- **STREET 1:** 77 HOT METAL STREET
- **CITY:** PITTSBURGH
- **STATE:** PA
- **ZIP:** 15203
- **BUSINESS PHONE:** 4124323300

**MAIL ADDRESS:**
- **STREET 1:** 77 HOT METAL STREET
- **CITY:** PITTSBURGH
- **STATE:** PA
- **ZIP:** 15203

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** March 01, 2023<br>

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AMERICAN EAGLE OUTFITTERS INC

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Delaware | 1-33338 | 13-2721761 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 77 Hot Metal Street |  |  |
| Pittsburgh**,** Pennsylvania |  | 15203-2329 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**Registrant's Telephone Number, Including Area Code:** (412) 432-3300<br>

Not Applicable

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common Stock, $0.01 par value | AEO | New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On March 1, 2023, American Eagle Outfitters, Inc. (the "Company") issued a press release announcing, among other things, the Company's financial results for the fourth quarter ended January 28, 2023. A copy of this press release is attached hereto as Exhibit 99.1.

The information in this Item 2.02, including the accompanying Exhibits, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

This Current Report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in our Annual Report on Form 10-K for the year ended January 29, 2022, and in any subsequently-filed quarterly reports on Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on our website and on the Securities and Exchange Commission's website (www.sec.gov). The Company does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

**Item 9.01 Financial Statements and Exhibits.**

(d) <u>Exhibits</u>.

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| | |
|:---|:---|
| **Exhibit Number** | <br>**Description** |
| [<u>99.1</u>](aeo-ex99_1.htm) | [<u>Press release dated March 1, 2023</u>](aeo-ex99_1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | AMERICAN EAGLE OUTFITTERS, INC. |
|  |  |  | (Registrant) |
| Date: | March 1, 2023 | By:  | /s/ Michael A. Mathias |
|  |  |  | Michael A. Mathias<br>Executive Vice President, Chief Financial Officer |

---

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## Ex-99

**Exhibit 99.1**

![img256790458_0.jpg](img256790458_0.jpg)

**AEO Reports Fourth Quarter Profit Ahead of Expectations, Demonstrating Continued Profit Improvement. Declared Quarterly Cash Dividend at $0.10 per share.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•**Achieved second highest fourth quarter revenue in company history** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•**Adjusted operating profit of $96 million increased to last year and 2019** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•**Delivered strong free cash flow and declared a quarterly cash dividend of $0.10 per share** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•**Aerie posted all-time high fourth quarter revenue and operating profit** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•**American Eagle demonstrated a sequential improvement in revenue trends with operating profit up to 2019**

March 1, 2023

PITTSBURGH -- (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the fourth quarter and full year fiscal 2022 ended January 28, 2023.

"I am proud of how our teams navigated through unanticipated macro challenges this year, which pressured top line demand as we lapped record strength in 2021. In response, we took aggressive actions early in the year on inventory and spending to strengthen margins and increase free cash flow. We saw meaningful improvements as the year progressed. We ended 2022 in a healthy financial position and I'm pleased to reinstate our quarterly cash dividend," commented Jay Schottenstein, AEO's Executive Chairman of the Board and Chief Executive Officer.

"Looking ahead, I am encouraged by several positives. Our inventory levels are healthy. The global supply chain has stabilized, restoring agility to our operations with a more normalized cost environment. Our brands are poised to deliver innovation and quality to our customers and to benefit from emerging fashion trends. Yet, our visibility into the macro remains limited and we are taking a cautious view on 2023. We will stay disciplined, maintain sharp control over expenses and seek ongoing efficiencies to drive shareholder returns."

**Fourth Quarter 2022 Results:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Total net revenue of $1.5 billion was down 1% to the fourth quarter of 2021. Our supply chain business, Quiet Platforms, contributed approximately 1 percentage point to revenue growth. Brand revenue declined 2%, exceeding company expectations for a mid-single digit decline.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Aerie revenue of $464 million rose 8% versus fourth quarter 2021. Comp sales declined 2% versus fourth quarter 2021. American Eagle revenue of $962 million declined 8% versus fourth quarter 2021 Comp sales declined 9% versus fourth quarter 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated store revenue was flat. Total digital revenue declined 9%. Compared to pre-pandemic fourth quarter 2019, store revenue increased 5% and digital revenue increased 19%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Gross profit of $507 million increased approximately 4% compared to $489 million in the fourth quarter of 2021 and reflected a gross margin rate of 33.9% compared to 32.4% last year. This exceeded company expectations for the high-end of 32-33% due to lower than anticipated promotions. Stronger merchandise margins reflected lower product and transportation costs with a partial offset from higher markdowns. Lower compensation and delivery costs also had a positive impact on margins offset by higher distribution and warehousing costs and higher rent. Quiet Platforms was an 80 basis point reduction to gross margin as that business continues to scale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Selling, general and administrative expense of $351 million was flat to last year and in-line with guidance. SG&A increased 30 basis points as a rate to sales versus fourth quarter 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GAAP operating income was $74 million. Non-GAAP operating income of $96 million, reflected a 6.4% margin. This excluded $18 million of impairment and restructuring charges primarily related to stores. The company also incurred a $4 million impairment and restructuring charge due to the closing of Quiet Platform's Jacksonville facility, which was replaced by a higher productivity location in Atlanta. Quiet Platforms generated a $17 million GAAP operating loss in the period, or a $13 million loss excluding the aforementioned charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GAAP diluted EPS of $0.28. Non-GAAP diluted EPS of $0.37 excludes $0.09 of impairment and restructuring charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Average diluted shares outstanding were 197 million including approximately 4 million shares of unrealized dilution associated with the company's convertible notes.

**Fiscal Year 2022 Results:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Total net revenue of $5.0 billion was flat to fiscal year 2021. Our supply chain business, Quiet Platforms, contributed approximately 3 percentage points to revenue growth. Brand revenue declined approximately 3%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Aerie revenue of $1.5 billion rose 9% from fiscal year 2021 on top of 39% growth last year. American Eagle revenue of $3.3 billion declined 8% from fiscal year 2021 following a 30% increase last year. Compared to the pre-pandemic fiscal year 2019 base, Aerie revenue increased 88% and AE revenue declined 6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated store revenue declined 2%. Total digital revenue declined 7%. Compared to the pre-pandemic fiscal year 2019 base, revenue was up across channels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Gross profit of $1.7 billion decreased 12% from fiscal year 2021 and reflected a gross margin rate of 35.0% compared to 39.7% last year. Lower merchandise margins primarily reflected higher markdowns. Higher distribution and warehousing costs and higher rent also pressured margins, partially offset by lower compensation. Quiet Platforms was a 70 basis point reduction to the gross margin as that business continues to scale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Selling, general and administrative expense increased 100 basis points as a rate to sales versus fiscal year 2021 due to higher store and corporate salaries, higher professional

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services, higher advertising and higher travel expenses, with a partial offset from lower incentive compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GAAP Operating income was $247 million. Non-GAAP operating income of $269 million, reflected a 5.4% operating margin. This excluded approximately $22 million in charges in the fourth quarter, as described above. Quiet Platforms generated a $47 million GAAP operating loss in the period, or a $43 million loss excluding the $4 million impairment and restructuring charge as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Average diluted shares outstanding were 205 million compared to 207 million in fiscal year 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GAAP EPS of $0.64. Non-GAAP EPS of $0.97 excludes $0.33 of debt-related, impairment and restructuring charges.

**Inventory**

Total ending inventory at cost increased 6% to $585 million compared to $553 million last year, with units up 4%. Inventory is current, with AE and Aerie inventory across the US and Canada down in the high single digits to last year, consistent with guidance. The consolidated increase reflects earlier than expected deliveries as the supply chain continues to normalize and increases related to Mexico and the Todd Snyder brand, where we are experiencing growth well into the double digits.

**Capital Expenditures**

Capital expenditures totaled $61 million in the fourth quarter and $260 million for full year fiscal 2022, down significantly from initial plans entering the year. For 2023, management expects capital expenditures to approximate $150 to $190 million.

**Balance Sheet and Shareholder Returns**

In fiscal 2022, the company exchanged $403 million of the outstanding principal amount of its senior convertible notes due 2025, simplifying and strengthening the capital structure. At the end of the year, the company had $9 million in aggregate principal amount of the notes outstanding. In connection with the exchange transactions, the company completed a $200 million accelerated share repurchase program.

Separately, the company paid two quarterly cash dividends in the first half of 2022, amounting to approximately $65 million. After initiating a temporary pause in September, the Board of Directors has reinstated a quarterly cash dividend at $0.10 per share. The dividend was declared on February 28, 2023 and is payable on April 21, 2023 to stockholders of record at the close of business on April 6, 2023.

**Outlook**

Entering 2023, our brands are strong and inventory is healthy. The global supply chain continues to normalize, providing improved costs and greater agility. Additionally, the company remains focused on reducing expenses. Yet, given limited visibility into the macro environment and overall consumer spending behavior, the company is taking a cautious view.

For the first quarter, management's outlook reflects revenue in the range of flat to up low-single digits with operating income approximately flat to last year.

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For the full-year, management's outlook reflects revenue in the range of flat to up low-single digits with operating income in the range of $270 to $310 million, compared to adjusted operating income of $269 million in 2022.

**Conference Call and Supplemental Financial Information**

Management will host a conference call and real time webcast today at 4:30 p.m. Eastern Time. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to www.aeo-inc.com to access the webcast and audio replay. Additionally, a financial results presentation is posted on the company's website.

**Non-GAAP Measures** 

This press release includes information on non-GAAP financial measures ("non-GAAP" or "adjusted"), including consolidated adjusted operating income, net income, net income per diluted share and free cash flow, excluding non-GAAP items. These financial measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles ("GAAP") and are not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Management believes that this non-GAAP information is useful for an alternate presentation of the company's performance, when reviewed in conjunction with the company's GAAP consolidated financial statements and provides a higher degree of transparency.

These amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the company's business and operations. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures.

The tables included in this press release reconcile the GAAP financial measures to the non-GAAP financial measures discussed above.

\* \* \* \*

**About American Eagle Outfitters, Inc.**

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle® and Aerie® brands. Our purpose is to show the world that there's REAL power in the optimism of youth. The company operates stores in the United States, Canada, Mexico, Hong Kong and Japan, and ships to approximately 80 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 260 international locations operated by licensees in approximately 30 countries. In 2022, AEO released its first annual Building a Better World report, which outlines two decades of ESG achievements through the company's Planet, People and Practices initiatives. For more information, please visitwww.aeo-inc.com.

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**SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995** 

This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent our expectations or beliefs concerning future events, including first quarter and annual fiscal 2023 results. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on many important factors, some of which may be beyond the company's control. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," "potential," and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 29, 2022 and in any other filings that we may make with the Securities and Exchange Commission in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results for fiscal 2023 and beyond to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the negative impacts of the COVID-19 pandemic and related operational disruptions; the risk that the company's operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity.

**CONTACT:** 

Olivia Messina

412-432-3300

LineMedia@ae.com

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| | | | | |
|:---|:---|:---|:---|:---|
| **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** |
| **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** |
| (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **January 28, 2023** | **January 28, 2023** | **January 29, 2022** | **January 29, 2022** |
| **Assets** |  |  |  |  |
| Current assets: |  |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $— | 170209 | $— | 434770 |
| &nbsp;&nbsp;Merchandise inventory |  | 585083 |  | 553458 |
| &nbsp;&nbsp;Accounts receivable, net |  | 242386 |  | 286683 |
| &nbsp;&nbsp;Prepaid expenses and other |  | 102563 |  | 122013 |
| Total current assets |  | 1100241 |  | 1396924 |
| Operating lease right-of-use assets |  | 1086999 |  | 1193021 |
| Property and equipment, at cost, net of accumulated depreciation |  | 781514 |  | 728272 |
| Goodwill, net |  | 264945 |  | 271416 |
| Intangible assets, net |  | 94536 |  | 102701 |
| Non-current deferred income taxes |  | 36483 |  | 44167 |
| Other assets |  | 56238 |  | 50142 |
| Total assets | $— | **3420956** | $— | **3786643** |
| **Liabilities and Stockholders' Equity** |  |  |  |  |
| Current liabilities: |  |  |  |  |
| &nbsp;&nbsp;Accounts payable | $— | 234340 | $— | 231782 |
| &nbsp;&nbsp;Current portion of operating lease liabilities |  | 337258 |  | 311005 |
| &nbsp;&nbsp;Unredeemed gift cards and gift certificates |  | 67618 |  | 71365 |
| &nbsp;&nbsp;Accrued compensation and payroll taxes |  | 51912 |  | 141817 |
| &nbsp;&nbsp;Accrued income taxes and other |  | 10919 |  | 16274 |
| &nbsp;&nbsp;Other current liabilities and accrued expenses |  | 66901 |  | 70628 |
| Total current liabilities |  | 768948 |  | 842871 |
| Non-current liabilities: |  |  |  |  |
| &nbsp;&nbsp;Non-current operating lease liabilities |  | 1021200 |  | 1154481 |
| &nbsp;&nbsp;Long-term debt, net |  | 8911 |  | 341002 |
| &nbsp;&nbsp;Other non-current liabilities |  | 22734 |  | 24617 |
| Total non-current liabilities |  | 1052845 |  | 1520100 |
| Commitments and contingencies |  | - |  | - |
| Stockholders' equity: |  |  |  |  |
| &nbsp;&nbsp;Preferred stock |  | - |  | - |
| &nbsp;&nbsp;Common stock |  | 2496 |  | 2496 |
| &nbsp;&nbsp;Contributed capital |  | 341775 |  | 636355 |
| &nbsp;&nbsp;Accumulated other comprehensive loss |  | (32630) |  | (40845) |
| &nbsp;&nbsp;Retained earnings |  | 2137126 |  | 2203772 |
| &nbsp;&nbsp;Treasury stock |  | (849604) |  | (1378106) |
| Total stockholders' equity |  | 1599163 |  | 1423672 |
| **Total Liabilities and Stockholders' Equity** | $— | **3420956** | $— | **3786643** |
| Current ratio |  | 1.43 |  | 1.66 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** |
| **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** | **CONSOLIDATED STATEMENTS OF OPERATIONS** |
| (Dollars and shares in thousands, except per share amounts) | (Dollars and shares in thousands, except per share amounts) | (Dollars and shares in thousands, except per share amounts) | (Dollars and shares in thousands, except per share amounts) | (Dollars and shares in thousands, except per share amounts) | (Dollars and shares in thousands, except per share amounts) | (Dollars and shares in thousands, except per share amounts) |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **GAAP Basis** | **GAAP Basis** | **GAAP Basis** | **GAAP Basis** | **GAAP Basis** | **GAAP Basis** |
|  | **13 Weeks Ended** | **13 Weeks Ended** | **13 Weeks Ended** | **13 Weeks Ended** | **13 Weeks Ended** | **13 Weeks Ended** |
|  | **January 28, 2023** | **January 28, 2023** | **% of Revenue** | **January 29, 2022** | **January 29, 2022** | **% of Revenue** |
| Total net revenue | $— | 1496088 | 100.0% | $— | 1507937 | 100.0% |
| Cost of sales, including certain buying, occupancy and warehousing expenses |  | 988656 | 66.1% |  | 1019252 | 67.6% |
| Gross profit |  | 507432 | 33.9% |  | 488685 | 32.4% |
| Selling, general and administrative expenses |  | 351408 | 23.5% |  | 349680 | 23.2% |
| Impairment and restructuring charges |  | 22209 | 1.5% |  | 11944 | 0.8% |
| Depreciation and amortization expense |  | 60233 | 4.0% |  | 47107 | 3.1% |
| Operating income |  | 73582 | 4.9% |  | 79954 | 5.3% |
| Debt related charges |  | 4655 | 0.3% |  | - | 0.0% |
| Interest expense, net |  | 2409 | 0.2% |  | 8595 | 0.6% |
| Other (income) expense, net |  | (4964) | -0.4% |  | 3865 | 0.3% |
| Income before income taxes |  | 71482 | 4.8% |  | 67494 | 4.4% |
| Provision for income taxes |  | 16891 | 1.2% |  | 17066 | 1.1% |
| Net income | $— | 54591 | 3.6% | $— | 50428 | 3.3% |
| Net income per basic share | $— | 0.29 |  | $— | 0.30 |  |
| Net income per diluted share | $— | 0.28 |  | $— | 0.25 |  |
| Weighted average common shares outstanding - basic |  | 190621 |  |  | 167611 |  |
| Weighted average common shares outstanding - diluted |  | 196893 |  |  | 203388 |  |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **GAAP Basis** | **GAAP Basis** | **GAAP Basis** | **GAAP Basis** | **GAAP Basis** | **GAAP Basis** |
|  | **52 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** |
|  | **January 28, 2023** | **January 28, 2023** | **% of Revenue** | **January 29, 2022** | **January 29, 2022** | **% of Revenue** |
| Total net revenue | $— | 4989833 | 100.0% | $— | 5010785 | 100.0% |
| Cost of sales, including certain buying, occupancy and warehousing expenses |  | 3244585 | 65.0% |  | 3018995 | 60.3% |
| Gross profit |  | 1745248 | 35.0% |  | 1991790 | 39.7% |
| Selling, general and administrative expenses |  | 1269095 | 25.4% |  | 1222000 | 24.4% |
| Impairment and restructuring charges |  | 22209 | 0.4% |  | 11944 | 0.2% |
| Depreciation and amortization expense |  | 206897 | 4.2% |  | 166781 | 3.3% |
| Operating income |  | 247047 | 5.0% |  | 591065 | 11.8% |
| Debt related charges |  | 64721 | 1.3% |  | - | 0.0% |
| Interest expense, net |  | 14297 | 0.3% |  | 34632 | 0.7% |
| Other (income), net |  | (10465) | -0.2% |  | (2489) | -0.1% |
| Income before income taxes |  | 178494 | 3.6% |  | 558922 | 11.2% |
| Provision for income taxes |  | 53358 | 1.1% |  | 139293 | 2.8% |
| Net income | $— | 125136 | 2.5% | $— | 419629 | 8.4% |
| Net income per basic share | $— | 0.69 |  | $— | 2.50 |  |
| Net income per diluted share | $— | 0.64 |  | $— | 2.03 |  |
| Weighted average common shares outstanding - basic |  | 181778 |  |  | 168156 |  |
| Weighted average common shares outstanding - diluted |  | 205226 |  |  | 206529 |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** |
| **BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION** | **BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION** | **BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION** | **BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION** | **BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION** |
| (Dollars and shares in thousands) | (Dollars and shares in thousands) | (Dollars and shares in thousands) | (Dollars and shares in thousands) | (Dollars and shares in thousands) |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **13 Weeks Ended** | **13 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** |
| **Numerator:** | **January 28, 2023** | **January 29, 2022** | **January 28, 2023** | **January 29, 2022** |
| Net income and numerator for basic EPS | $54591 | $50428 | $125136 | $419629 |
| Add: Interest expense, net of tax, related to the 2025 Notes (1) | 289 | - | 5474 | - |
| Numerator for diluted EPS | $54880 | $50428 | $130610 | $419629 |
| **Denominator:** |  |  |  |  |
| Denominator for basic EPS - weighted average shares | 190621 | 167611 | 181778 | 168156 |
| Add: Dilutive effect of the 2025 Notes (1) | 4296 | 32162 | 21507 | 34003 |
| Add: Dilutive effect of stock options and non-vested restricted stock | 1976 | 3615 | 1941 | 4370 |
| Denominator for diluted EPS - weighted average shares | 196893 | 203388 | 205226 | 206529 |

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<sup>(1)</sup> During the 52 weeks ended January 28, 2023, the Company adopted ASU 2020-06 under the modified retrospective method, which requires the Company to utilize the "if-converted" method of calculated diluted EPS.

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| | | | | |
|:---|:---|:---|:---|:---|
| **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** |
| **GAAP TO NON-GAAP RECONCILIATION** | **GAAP TO NON-GAAP RECONCILIATION** | **GAAP TO NON-GAAP RECONCILIATION** | **GAAP TO NON-GAAP RECONCILIATION** | **GAAP TO NON-GAAP RECONCILIATION** |
| (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **13 Weeks Ended** | **13 Weeks Ended** | **13 Weeks Ended** | **13 Weeks Ended** |
|  | **January 28, 2023** | **January 28, 2023** | **January 28, 2023** | **January 28, 2023** |
|  | **Operating income** | **Debt related charges** | **Net income** | **Diluted earnings per common share** |
| **GAAP Basis** | $**73582** | $**4655** | $**54591** | $**0.28** |
| % of Revenue | 4.9% | 0.3% | 3.6% |  |
| Add: Impairment and restructuring charges (1) | 22209 | - | 18186 | 0.09 |
| Less: Debt related charges(2) | - | 4655 | 552 | - |
| **Non-GAAP Basis** | $**95791** | $**-** | $**73329** | $**0.37** |
| % of Revenue | 6.4% | 0.0% | 4.9% |  |

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<sup>(1)</sup> $22.2 million pre-tax impairment and restructuring charges:<br>- $20.6 million of asset impairment charges<br>- $1.6 million of restructuring charges including corporate and field severance

<sup>(2)</sup> $4.7 million pre-tax debt related charges related to the induced conversion expense on the exchange of our convertible notes. The difference in the effective tax rate resulted from the overall deductibility of the induced conversion expense incurred during the year.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **13 Weeks Ended** | **13 Weeks Ended** | **13 Weeks Ended** | **13 Weeks Ended** | **13 Weeks Ended** |
|  | **January 29, 2022** | **January 29, 2022** | **January 29, 2022** | **January 29, 2022** | **January 29, 2022** |
|  | **Operating income** | **Interest expense, net** | **Other (income) expense, net** | **Net income** | **Diluted earnings per common share** |
| **GAAP Basis** | $**79954** | $**8595** | $**3865** | $**50428** | $**0.25** |
| % of Revenue | 5.3% | 0.6% | 0.3% | 3.3% |  |
| Add: Asset impairment charges | 11944 | - | - | 8918 | 0.04 |
| Add: EU license operations reorganization | - | - | 11909 | 8892 | 0.04 |
| Less: Convertible debt (1) | - | (4567) | - | 3410 | 0.02 |
| **Non-GAAP Basis** | $**91898** | $**4028** | $**(8044)** | $**71648** | $**0.35** |
| % of Revenue | 6.1% | 0.3% | -0.5% | 4.8% |  |

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<sup>(1)</sup> Amortization of the non-cash discount on the Company's convertible notes

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| | |
|:---|:---|
|  | **13 Weeks Ended** |
|  | **February 1, 2020** |
|  | **Operating income** |
| **GAAP Basis** | $**476** |
| % of Revenue | 0.0% |
| Add: Impairment and restructuring charges (1) | 76223 |
| Tax (2) | - |
| **Non-GAAP Basis** | $**76699** |
| % of Revenue | 5.8% |

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<sup>(1)</sup> $76.2 million pre-tax impairment and restructuring charges:<br>

-$64.5 million of leasehold improvements, store fixtures, and operating lease right of use assets and a $1.7M <br>goodwill impairment charge.<br>- $10.0 million of restructuring charges including $4.2M of joint business venture exit charges, $4.0M of corporate and <br>field severance, and $1.8M of market transaction costs in Japan

<sup>(2)</sup> GAAP tax rate of -187% included the impact of valuation allowances on impairment and restructuring charges. Excluding the impact of those items resulted in an adjusted 19.9% tax rate for the quarter. The 206.9% difference is primarily driven by the size of this tax benefit compared to fourth quarter pre-tax income.

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| | | | | |
|:---|:---|:---|:---|:---|
| **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** |
| **GAAP TO NON-GAAP RECONCILIATION** | **GAAP TO NON-GAAP RECONCILIATION** | **GAAP TO NON-GAAP RECONCILIATION** | **GAAP TO NON-GAAP RECONCILIATION** | **GAAP TO NON-GAAP RECONCILIATION** |
| (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) | (Dollars in thousands, except per share amounts) |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **52 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** |
|  | **January 28, 2023** | **January 28, 2023** | **January 28, 2023** | **January 28, 2023** |
|  | **Operating income** | **Debt related charges** | **Net income** | **Diluted earnings per common share** |
| **GAAP Basis** | $**247047** | $**64721** | $**125136** | $**0.64** |
| % of Revenue | 5.0% | 1.3% | 2.5% |  |
| Add: Impairment and restructuring charges (1) | 22209 | - | 18221 | 0.09 |
| Less: Debt related charges(2) | - | 64721 | 49679 | 0.24 |
| **Non-GAAP Basis** | $**269256** | $**-** | $**193036** | $**0.97** |
| % of Revenue | 5.4% | 0.0% | 3.9% |  |

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<sup>(1)</sup> $22.2 million pre-tax impairment and restructuring charges:<br> - $20.6 million of asset impairment charges<br> - $1.6 million of restructuring charges including corporate and field severance

<sup>(2)</sup> $64.7 million pre-tax debt related charges related primarily to the induced conversion expense on the exchange of our convertible notes, along with certain other costs related to actions we took to strengthen our capital structure.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **52 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** | **52 Weeks Ended** |
|  | **January 29, 2022** | **January 29, 2022** | **January 29, 2022** | **January 29, 2022** | **January 29, 2022** |
|  | **Operating income** | **Interest expense, net** | **Other (income), net** | **Net income** | **Diluted earnings per common share** |
| **GAAP Basis** | $**591065** | $**34632** | $**(2489)** | $**419629** | $**2.03** |
| % of Revenue | 11.8% | 0.7% | -0.1% | 8.4% |  |
| Add: Asset impairment charges | 11944 | - | - | 8944 | 0.04 |
| Add: EU license operations reorganization | - | - | 11909 | 8917 | 0.04 |
| Less: Convertible debt (1) | - | (18519) | - | 13867 | 0.07 |
| **Non-GAAP Basis** | $**603009** | $**16113** | $**(14398)** | $**451357** | $**2.19** |
| % of Revenue | 12.0% | 0.3% | -0.3% | 9.0% |  |

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<sup>(1)</sup> Amortization of the non-cash discount on the Company's convertible notes

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| | | | | |
|:---|:---|:---|:---|:---|
| **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** |
| **RESULTS BY SEGMENT** | **RESULTS BY SEGMENT** | **RESULTS BY SEGMENT** | **RESULTS BY SEGMENT** | **RESULTS BY SEGMENT** |
| (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
|  | **American Eagle** | **Aerie** | **Corporate and Other (1)** | **Total** |
| **13 weeks ended January 28, 2023** |  |  |  |  |
| Total net revenue | $961848 | $463663 | $70577 | $1496088 |
| Operating income (loss) | $140540 | $53119 | $(120077) | $73582 |
| Impairment and restructuring | $13037 | $3552 | $5620 | $22209 |
| Adjusted operating income (loss) | $153577 | $56671 | $(114457) | $95791 |
| % of revenue | 16.0% | 12.2% |  | 6.4% |
| Capital expenditures | $30033 | $21421 | $9560 | $61014 |
| **13 weeks ended January 29, 2022** |  |  |  |  |
| Total net revenue | $1043264 | $428418 | $36255 | $1507937 |
| Operating income (loss) | $171898 | $20946 | $(112890) | $79954 |
| Asset impairment | $10231 | $1713 | $- | $11944 |
| Adjusted operating income (loss) | $182129 | $22659 | $(112890) | $91898 |
| % of revenue | 17.5% | 5.3% |  | 6.1% |
| Capital expenditures | $15944 | $34062 | $39436 | $89442 |
| **13 weeks ended February 1, 2020** |  |  |  |  |
| Total net revenue | $1035097 | $270007 | $9527 | $1314631 |
| Operating income (loss) | $71260 | $11467 | $(82251) | $476 |
| Impairment and restructuring | $41657 | $20261 | $14305 | $76223 |
| Adjusted operating income (loss) | $112917 | $31728 | $(67946) | $76699 |
| % of revenue | 10.9% | 11.8% |  | 5.8% |
| Capital expenditures | $25832 | $13651 | $20932 | $60415 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **American Eagle** | **Aerie** | **Corporate and Other (1)** | **Total** |
| **52 Weeks Ended January 28, 2023** |  |  |  |  |
| Total net revenue | $3262893 | $1506798 | $220142 | $4989833 |
| Operating income (loss) | $528369 | $163915 | $(445237) | $247047 |
| Impairment and restructuring | $13037 | $3552 | $5620 | $22209 |
| Adjusted operating income (loss) | $541406 | $167467 | $(439617) | $269256 |
| % of revenue | 16.6% | 11.1% |  | 5.4% |
| Capital expenditures | $85033 | $107084 | $68261 | $260378 |
| **52 Weeks Ended January 29, 2022** |  |  |  |  |
| Total net revenue | $3555706 | $1376269 | $78810 | $5010785 |
| Operating income (loss) | $785729 | $212287 | $(406951) | $591065 |
| Asset impairment | $10231 | $1713 | $- | $11944 |
| Adjusted operating income (loss) | $795960 | $214000 | $(406951) | $603009 |
| % of revenue | 22.4% | 15.5% |  | 12.0% |
| Capital expenditures | $47106 | $80062 | $106679 | $233847 |
| **52 Weeks Ended February 1, 2020** |  |  |  |  |
| Total net revenue | $3479592 | $801035 | $27585 | $4308212 |
| Operating income (loss) | $484078 | $47465 | $(298198) | $233345 |
| Impairment and restructuring | $41657 | $20261 | $18576 | $80494 |
| Adjusted operating income (loss) | $525735 | $67726 | $(279622) | $313839 |
| % of revenue | 15.1% | 8.5% |  | 7.3% |
| Capital expenditures | $98699 | $56283 | $55378 | $210360 |

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<sup>(1)</sup> Corporate and Other includes revenue and operating results of the Todd Snyder and Unsubscribed brands, and Quiet Platforms (net of intersegment eliminations), which have been identified as operating segments but are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. <br>

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| | | |
|:---|:---|:---|
| **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** | **AMERICAN EAGLE OUTFITTERS, INC.** |
| **STORE INFORMATION** | **STORE INFORMATION** | **STORE INFORMATION** |
| (unaudited) | (unaudited) | (unaudited) |
|  | **Fourth Quarter** | **YTD Fourth Quarter** |
|  | **2022** | **2022** |
| Consolidated stores at beginning of period | 1179 | 1133 |
| Consolidated stores opened during the period |  |  |
| AE Brand (2) | 6 | 25 |
| Aerie (incl. OFFL/NE) (3) | 5 | 56 |
| Todd Snyder | 4 | 5 |
| Unsubscribed | - | 1 |
| Consolidated stores closed during the period |  |  |
| AE Brand (2) | (16) | (39) |
| Aerie (incl. OFFL/NE) (3) | (3) | (6) |
| Total consolidated stores at end of period | **1175** | **1175** |
| AE Brand (2) | 865 |  |
| Aerie (incl. OFFL/NE) (3) | 295 |  |
| Todd Snyder | 10 |  |
| Unsubscribed | 5 |  |
| Total gross square footage at end of period (in '000) | 7267 | 7267 |
| International license locations at end of period (1) | 269 | 269 |

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<sup>(1)</sup> International license locations (retail stores and concessions) are not included in the consolidated store data or the total gross square footage calculation.

<sup>(2)</sup> AE Brand includes AE stand alone locations, AE/Aerie side-by side locations, AE/OFFL/NE side-by-side locations, and AE/Aerie/OFFL/NE side-by-side locations.

<sup>(3)</sup> Aerie (incl. OFFL/NE) includes Aerie stand alone locations, OFFL/NE stand alone locations, and Aerie/OFFL/NE side-by-side locations.

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