Business Wire | Sep 2, 2021 08:00AM EDT

American Eagle Outfitters Reports All-time High Second Quarter Revenue and Operating Income Reflecting Strength Across Brands and Great Progress on our "Real Power. Real Growth." Value Creation Plan

Sep. 02, 2021

PITTSBURGH--(BUSINESS WIRE)--Sep. 02, 2021--American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the second quarter ended July 31, 2021.

"It's extremely gratifying to see significant growth across our business, as we delivered another quarter of record revenue and profitability. Results underscore the strength of our brands, outstanding product and a leading customer experience across selling channels. We are running our business with a laser focus on profitability through inventory and real-estate optimization initiatives and investments to enhance our supply chain. Led by an expanding customer file, Aerie is achieving consistent, robust multi-year growth and very strong profit flow through. American Eagle posted meaningful top-and bottom-line increases with significant unlock still ahead. Our Real Power. Real Growth. plan has been a guiding light for all facets of the business, positioning us to successfully navigate a dynamic macro environment. Despite external challenges, I believe we are on path to achieve $600 million in operating income this year, well ahead of our previous target," said Jay Schottenstein, AEO's Executive Chairman of the Board and Chief Executive Officer."

Second Quarter 2021 Results

* Total net revenue increased $311 million, or 35% to $1.19 billion, compared to $0.88 billion in the second quarter of 2020. * Aerie revenue of $336 million rose 34% from second quarter 2020 on top of 32% growth last year. American Eagle revenue of $846 million rose 35% versus second quarter 2020 following a 26% decline last year. * Consolidated store revenue increased 73% from second quarter 2020 due to an improvement in store traffic. Total online demand this quarter was up 9%. Digital revenue decreased 5% from second quarter 2020 reflecting the natural channel shift associated with improved store traffic across the US. Last year, the abrupt acceleration in digital also created a significant fulfillment backlog that shifted sales from the first quarter into the second quarter in 2020. Compared to the pre-pandemic second quarter 2019 base, store revenue increased 4% and digital revenue increased 66%. * Gross profit of $502 million rose 89% from $265 million in the second quarter of 2020. * Gross margin of 42.1% expanded 1210 basis points from 30% in the second quarter of 2020. The increase from 2020 reflected significant revenue and merchandise margin expansion across brands, primarily driven by strong demand, higher full-priced sales, lower promotions and inventory optimization initiatives. Rent, digital delivery expenses and compensation also leveraged. * Selling, general and administrative expense leveraged 70 basis points as a rate to sales versus second quarter 2020 due to strong revenue growth. On a dollar basis, SG&A increased due largely to the re-opening of our stores. We also saw increased advertising as well as incentive costs. * Depreciation and amortization expense of $40 million compared to $39 million in the second quarter of 2020 and leveraged 100 basis points as a rate to sales due to strong revenue growth, asset impairments, as well as lower capital spending in 2020. * Operating income of $168 million compared to an operating loss of $12 million in second quarter 2020, or operating income of $2 million on an adjusted basis. Aerie's operating income of $71 million increased 132% from $30 million in the second quarter of 2020 and American Eagle's operating income of $199 million increased 234% from $60 million in the second quarter of 2020. * Operating margin of 14.1% reflected the highest rate since 2008. Aerie operating margin of 21.0% expanded 890 bps from 2020 and American Eagle's operating margin of 23.5% expanded 1400 bps from 2020. * Average diluted shares outstanding were 209 million compared to 166 million in the second quarter of 2020. The increase primarily reflected 36 million shares of unrealized dilution associated with the company's convertible notes. * EPS of $0.58 this quarter. Adjusted EPS of $0.60 this quarter excludes $0.02 of non-cash interest expense on the company's convertible notes.

Inventory

Total consolidated ending inventory at cost increased $82 million or 20% to $504 million compared to a 21% decline last year. Inventory was up across both brands, positioned in key Fall categories, yet remained below revenue growth, which is consistent with our focus on inventory optimization.

Capital Expenditures

In the second quarter of 2021, capital expenditures totaled $49 million, and year to date totaled $86 million. For fiscal 2021, the company now expects capital expenditures to be at the lower end of our prior guidance range of $250 to $275 million.

Cash Flow and Balance Sheet

The company ended the period with total cash and short-term investments of $824 million. This compares to $899 million in second quarter 2020 which included $200 million from AEO's revolving credit facility, repaid in third quarter 2020.

Shareholder Returns

As previously announced, the Board of Directors of AEO approved a 31% increase in the quarterly dividend in June 2021 from $0.1375 to $0.18 per share. The company's second quarter cash dividend of $30 million was paid during the quarter.

Conference Call and Supplemental Financial Information

Today, management will host a conference call and real time webcast at 9:00 a.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 and earnings per share, 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, as it helps identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude in such non-GAAP measures. Accordingly, we believe that adjusted operating income provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to the key financial metrics used by our management in our financial and operational decision-making.

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.

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(r) and Aerie(r) 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, and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle and Aerie merchandise also is available at more than 200 international locations operated by licensees in 33 countries. For more information, please visit www.aeo-inc.com.

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 third quarter and annual fiscal 2021 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 30, 2021 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 2021 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.

AMERICAN EAGLE OUTFITTERS, INC.CONSOLIDATED BALANCE SHEETS(Dollars in thousands)(unaudited) July 31, January 30, August 1,

2021 2021 2020

ASSETSCash and cash equivalents $ 773,994 $ 850,477 $ 898,787

Short-term investments 50,000 - -

Merchandise inventory 503,507 405,445 421,196

Accounts receivable 155,361 146,102 107,243

Prepaid expenses and other 118,721 120,619 155,141

Total current assets 1,601,583 1,522,643 1,582,367

Property and equipment, net 641,396 623,808 659,351

Operating lease right-of-use 1,103,247 1,155,965 1,271,491 assetsIntangible assets, including 70,620 70,332 51,432 goodwillNon-current deferred income 46,600 33,045 30,224 taxesOther assets 31,576 29,013 33,111

Total Assets $ 3,495,022 $ 3,434,806 $ 3,627,976

LIABILITIES AND STOCKHOLDERS'EQUITYAccounts payable $ 221,471 $ 255,912 $ 295,296

Current portion of operating 288,534 328,624 348,921 lease liabilitiesAccrued compensation and 133,185 142,272 66,131 payroll taxesOther current liabilities and 56,568 55,343 51,281 accrued expensesUnredeemed gift cards and gift 44,095 62,181 43,165 certificatesAccrued income taxes and other 25,365 14,150 12,783

Dividends payable - - 22,837

Total current liabilities 769,218 858,482 840,414

Non-current operating lease 1,094,386 1,148,742 1,253,105 liabilitiesLong-term debt, net 331,680 325,290 516,953

Other non-current liabilities 24,207 15,627 19,604

Total non-current liabilities 1,450,273 1,489,659 1,789,662

Commitments and contingencies - - -

Preferred stock - - -

Common stock 2,496 2,496 2,496

Contributed capital 630,506 663,718 647,284

Accumulated other (36,894 ) (40,748 ) (47,991 )comprehensive lossRetained earnings 2,058,448 1,868,613 1,807,687

Treasury stock (1,379,025 ) (1,407,414 ) (1,411,576 )

Total stockholders' equity 1,275,531 1,086,665 997,900

Total Liabilities and $ 3,495,022 $ 3,434,806 $ 3,627,976 Stockholders' EquityCurrent Ratio 2.08 1.77 1.88

AMERICAN EAGLE OUTFITTERS, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars and shares in thousands, except per share amounts)(unaudited)GAAP Basis13 Weeks EndedJuly 31,% ofAugust 1,% of2021

Revenue

2020

Revenue

Total net revenue$

1,194,156

100.0

%

$

883,510

100.0

%

Cost of sales, including certain buying, occupancy and warehousing expenses691,765

57.9

%

618,311

70.0

%

Gross profit502,391

42.1

%

265,199

30.0

%

Selling, general and administrative expenses293,939

24.6

%

223,711

25.3

%

Impairment, restructuring and COVID-19 related charges-

0.0

%

14,611

1.7

%

Depreciation and amortization expense40,456

3.4

%

39,114

4.4

%

Operating income (loss)167,996

14.1

%

(12,237

)

-1.4

%

Interest expense (income), net8,921

0.8

%

8,547

1.0

%

Other (income) expense, net(1,363

)

-0.1

%

(1,554

)

-0.2

%

Income (loss) before income taxes160,438

13.4

%

(19,230

)

-2.2

%

Provision (benefit) from income taxes38,927

3.2

%

(5,478

)

-0.6

%

Net income (loss)$

121,511

10.2

%

$

(13,752

)

-1.6

%

Net income (loss) per basic share$

0.73

$

(0.08

)

Net income (loss) per diluted share$

0.58

$

(0.08

)

Weighted average common shares outstanding - basic167,491

166,315

Weighted average common shares outstanding - diluted208,933

166,315

GAAP Basis26 Weeks EndedJuly 31,% ofAugust 1,% of2021

Revenue2020

RevenueTotal net revenue$

2,228,769

100.0

%

$

1,435,202

100.0

%

Cost of sales, including certain buying, occupancy and warehousing expenses1,290,188

57.9

%

1,141,697

79.5

%

Gross profit938,581

42.1

%

293,505

20.5

%

Selling, general and administrative expenses558,430

25.1

%

411,908

28.7

%

Impairment, restructuring and COVID-19 related charges-

0.0

%

170,231

11.9

%

Depreciation and amortization expense78,727

3.5

%

81,844

5.7

%

Operating income (loss)301,424

13.5

%

(370,478

)

-25.8

%

Interest expense (income), net17,426

0.7

%

8,693

0.6

%

Other (income) expense, net(3,223

)

-0.1

%

1,429

0.1

%

Income (loss) before income taxes287,221

12.9

%

(380,600

)

-26.5

%

Provision (benefit) from income taxes70,244

3.2

%

(109,685

)

-7.6

%

Net income (loss)$

216,977

9.7

%

$

(270,915

)

-18.9

%

Net income (loss) per basic share$

1.29

$

(1.63

)

Net income (loss) per diluted share$

1.04

$

(1.63

)

Weighted average common shares outstanding - basic168,036

166,461

Weighted average common shares outstanding - diluted208,400

166,461

AMERICAN EAGLE OUTFITTERS, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars and shares in thousands, except per share amounts)(unaudited) GAAP Basis 13 Weeks Ended July 31, % of August 1, % of 2021 Revenue 2020 Revenue

Total net revenue $ 1,194,156 100.0 % $ 883,510 100.0 %

Cost of sales, including 691,765 57.9 % 618,311 70.0 %certain buying, occupancy andwarehousing expensesGross profit 502,391 42.1 % 265,199 30.0 %

Selling, general and 293,939 24.6 % 223,711 25.3 %administrative expensesImpairment, restructuring and - 0.0 % 14,611 1.7 %COVID-19 related chargesDepreciation and amortization 40,456 3.4 % 39,114 4.4 %expenseOperating income (loss) 167,996 14.1 % (12,237 ) -1.4 %

Interest expense (income), net 8,921 0.8 % 8,547 1.0 %

Other (income) expense, net (1,363 ) -0.1 % (1,554 ) -0.2 %

Income (loss) before income 160,438 13.4 % (19,230 ) -2.2 %taxesProvision (benefit) from income 38,927 3.2 % (5,478 ) -0.6 %taxesNet income (loss) $ 121,511 10.2 % $ (13,752 ) -1.6 %

Net income (loss) per basic $ 0.73 $ (0.08 )shareNet income (loss) per diluted $ 0.58 $ (0.08 )share Weighted average common shares 167,491 166,315 outstanding - basicWeighted average common shares 208,933 166,315 outstanding - diluted GAAP Basis 26 Weeks Ended July 31, % of August 1, % of 2021 Revenue 2020 Revenue

Total net revenue $ 2,228,769 100.0 % $ 1,435,202 100.0 %

Cost of sales, including 1,290,188 57.9 % 1,141,697 79.5 %certain buying, occupancy andwarehousing expensesGross profit 938,581 42.1 % 293,505 20.5 %

Selling, general and 558,430 25.1 % 411,908 28.7 %administrative expensesImpairment, restructuring and - 0.0 % 170,231 11.9 %COVID-19 related chargesDepreciation and amortization 78,727 3.5 % 81,844 5.7 %expenseOperating income (loss) 301,424 13.5 % (370,478 ) -25.8 %

Interest expense (income), net 17,426 0.7 % 8,693 0.6 %

Other (income) expense, net (3,223 ) -0.1 % 1,429 0.1 %

Income (loss) before income 287,221 12.9 % (380,600 ) -26.5 %taxesProvision (benefit) from income 70,244 3.2 % (109,685 ) -7.6 %taxesNet income (loss) $ 216,977 9.7 % $ (270,915 ) -18.9 %

Net income (loss) per basic $ 1.29 $ (1.63 )shareNet income (loss) per diluted $ 1.04 $ (1.63 )share Weighted average common shares 168,036 166,461 outstanding - basicWeighted average common shares 208,400 166,461 outstanding - diluted AMERICAN EAGLE OUTFITTERS, INC.GAAP TO NON-GAAP RECONCILIATION(Dollars in thousands, except per share amounts)(unaudited)13 Weeks EndedJuly 31, 2021Interest Expense, netNet IncomeDiluted Earnings perCommon ShareGAAP Basis$

8,921

$

121,511

$

0.58

% of Revenue0.8

%

10.2

%

Less: Convertible debt (1):4,956

3,754

0.02

Non-GAAP Basis$

3,965

$

125,265

$

0.60

% of Revenue0.3

%

10.5

%

(1) Amortization of the non-cash discount on the Company's convertible notesAMERICAN EAGLE OUTFITTERS, INC.GAAP TO NON-GAAP RECONCILIATION(Dollars in thousands, except per share amounts)(unaudited) 13 Weeks Ended July 31, 2021 Diluted Interest Earnings Expense, net Net Income per Common ShareGAAP Basis $ 8,921 $ 121,511 $ 0.58

% of Revenue 0.8 % 10.2 %

Less: Convertible debt ^(1): 4,956 3,754 0.02

Non-GAAP Basis $ 3,965 $ 125,265 $ 0.60

% of Revenue 0.3 % 10.5 %

^(1) Amortization of the non-cashdiscount on the Company's convertiblenotes AMERICAN EAGLE OUTFITTERS, INC.

GAAP TO NON-GAAP RECONCILIATION

(Dollars in thousands, except per share amounts)

(unaudited)

13 Weeks Ended

August 1, 2020

Operating (Loss) Income

Interest Expense, net

Net (Loss) Income

Diluted (Loss) per Common Share

GAAP Basis$

(12,237

)

$

8,547

$

(13,752

)

$

(0.08

)

% of Revenue-1.4

%

1.0

%

-1.6

%

Add: Incremental COVID-19 related expenses and restructuring (1):14,611

-

10,447

0.05

Less: Convertible debt (2):-

3,949

2,826

0.03

Non-GAAP Basis$

2,374

$

4,598

$

(479

)

$

(0.00

)

% of Revenue0.3

%

0.5

%

-0.1

%

(1) $14.6 million incremental COVID-19 related expenses and restructuring charges:

-$13.9 million of incremental COVID-19 related expenses consisting of personal protective equipment and supplies for our associates and customers - $0.7 million of corporate severance charges

(2) Amortization of the non-cash discount on the Company's convertible notes AMERICAN EAGLE OUTFITTERS, INC.

GAAP TO NON-GAAP RECONCILIATION

(Dollars in thousands, except per share amounts)

(unaudited)

13 Weeks Ended

August 1, 2020

Diluted Operating Interest Net (Loss) (Loss) (Loss) Expense, Income per Income net Common Share

GAAP Basis $ (12,237 ) $ 8,547 $ (13,752 ) $ (0.08 )

% of Revenue -1.4 % 1.0 % -1.6 %

Add: Incremental COVID-19 14,611 - 10,447 0.05 related expenses and restructuring ^(1):Less: Convertible debt ^(2): - 3,949 2,826 0.03

Non-GAAP Basis $ 2,374 $ 4,598 $ (479 ) $ (0.00 )

% of Revenue 0.3 % 0.5 % -0.1 %

^(1) $14.6 million incremental COVID-19 related expenses and restructuringcharges:

-$13.9 million of incremental COVID-19 related expenses consisting of personalprotective equipment and supplies for our associates and customers- $0.7 million of corporate severance charges

^(2) Amortization of the non-cash discount on the Company's convertible notes AMERICAN EAGLE OUTFITTERS, INC.RESULTS BY SEGEMENT(Dollars in thousands)(unaudited)American EagleAerieCorporate(1)Total(2)13 weeks ended July 31, 2021Total net revenue$

845,882

$

335,795

$

12,479

$

1,194,156

Operating income (loss)$

198,896

$

70,646

$

(101,546

)

$

167,996

Capital Expenditures$

17,189

$

16,641

$

15,569

$

49,399

13 weeks ended August 1, 2020Total net revenue$

624,831

$

251,511

$

7,168

$

883,510

Operating income (loss)$

59,603

$

30,404

$

(102,244

)

$

(12,237

)

Impairment, restructuring, and COVID-19 related charges$

-

$

-

$

14,611

$

14,611

Adjusted operating income (loss)$

59,603

$

30,404

$

(87,633

)

$

2,374

Capital Expenditures$

6,774

$

8,620

$

12,098

$

27,492

American EagleAerieCorporate(1)Total(2)26 weeks ended July 31, 2021Total net revenue$

1,573,584

$

633,282

$

21,903

$

2,228,769

Operating income (loss)$

350,128

$

140,624

$

(189,328

)

$

301,424

Capital Expenditures$

30,628

$

27,460

$

28,117

$

86,205

26 weeks ended August 1, 2020Total net revenue$

1,015,081

$

406,492

$

13,629

$

1,435,202

Operating income (loss)$

(154,146

)

$

11,275

$

(227,607

)

$

(370,478

)

Impairment, restructuring, and COVID-19 related charges$

90,926

$

18,215

$

61,090

$

170,231

Adjusted operating income (loss)$

(63,220

)

$

29,490

$

(166,517

)

$

(200,247

)

Capital Expenditures$

14,873

$

17,408

$

29,121

$

61,402

(1) Corporate includes revenue and operating results of the Todd Snyder and Unsubscribed brands, which are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment.(2) The difference between Total Operating Income (loss) and Income (loss) before Taxes includes the following items, which are not allocated to our reportable segments: - For the 13 weeks ended July 31, 2021, interest expense, net or $8.9 million and other (income) expense, net of ($1.4) million. For the 26 weeks ended July 31, 2021, interest expense, net of $17.4 million and other (income) expense, net of ($3.2) million. - For the 13 weeks ended August 1, 2020, interest expense, net of $8.5 million and other (income) expense, net of ($1.6) million. For the 26 weeks ended August 1, 2020, interest expense, net of $8.7 million and other (income) expense, net of $1.4 million.AMERICAN EAGLE OUTFITTERS, INC.RESULTS BY SEGEMENT(Dollars in thousands)(unaudited) American Aerie Corporate^ Total^(2) Eagle (1)13 weeks ended July 31,2021Total net revenue $ 845,882 $ 335,795 $ 12,479 $ 1,194,156

Operating income (loss) $ 198,896 $ 70,646 $ (101,546 ) $ 167,996

Capital Expenditures $ 17,189 $ 16,641 $ 15,569 $ 49,399

13 weeks ended August 1,2020Total net revenue $ 624,831 $ 251,511 $ 7,168 $ 883,510

Operating income (loss) $ 59,603 $ 30,404 $ (102,244 ) $ (12,237 )

Impairment, $ - $ - $ 14,611 $ 14,611 restructuring, andCOVID-19 related chargesAdjusted operating $ 59,603 $ 30,404 $ (87,633 ) $ 2,374 income (loss)Capital Expenditures $ 6,774 $ 8,620 $ 12,098 $ 27,492

American Aerie Corporate^ Total^(2) Eagle (1)26 weeks ended July 31,2021Total net revenue $ 1,573,584 $ 633,282 $ 21,903 $ 2,228,769

Operating income (loss) $ 350,128 $ 140,624 $ (189,328 ) $ 301,424

Capital Expenditures $ 30,628 $ 27,460 $ 28,117 $ 86,205

26 weeks ended August 1,2020Total net revenue $ 1,015,081 $ 406,492 $ 13,629 $ 1,435,202

Operating income (loss) $ (154,146 ) $ 11,275 $ (227,607 ) $ (370,478 )

Impairment, $ 90,926 $ 18,215 $ 61,090 $ 170,231 restructuring, andCOVID-19 related chargesAdjusted operating $ (63,220 ) $ 29,490 $ (166,517 ) $ (200,247 )income (loss)Capital Expenditures $ 14,873 $ 17,408 $ 29,121 $ 61,402

^(1) Corporate includes revenue and operating results of the Todd Snyder andUnsubscribed brands, which are not material to disclose as separate reportablesegments. Corporate operating costs represents certain costs that are notdirectly attributable to another reportable segment. ^(2) The difference between Total Operating Income (loss) and Income (loss)before Taxes includes the following items, which are not allocated to ourreportable segments: - For the 13 weeks ended July 31, 2021, interest expense, net or $8.9 millionand other (income) expense, net of ($1.4) million. For the 26 weeks ended July31, 2021, interest expense, net of $17.4 million and other (income) expense,net of ($3.2) million. - For the 13 weeks ended August 1, 2020, interest expense, net of $8.5 millionand other (income) expense, net of ($1.6) million. For the 26 weeks endedAugust 1, 2020, interest expense, net of $8.7 million and other (income)expense, net of $1.4 million.AMERICAN EAGLE OUTFITTERS, INC.STORE INFORMATION(unaudited)Second QuarterYTD Second Quarter2021

2021

Consolidated stores at beginning of period1,074

1,078

Consolidated stores opened during the periodAE Brand7

11

Aerie stand-alone(3)12

18

Todd Snyder1

1

Unsubscribed0

1

Consolidated stores closed during the periodAE Brand(4

)

(18

)

Aerie stand-alone(3)0

(1

)

Total consolidated stores at end of period1,090

1,090

AE Brand894

Aerie stand-alone(3)191

Aerie side-by-side(2)183

Unsubscribed2

Todd Snyder3

Stores remodeled and refurbished during the period8

11

Total gross square footage at end of period (in '000)6,799

6,799

International license locations at end of period (1)242

242

Aerie OpeningsAerie stand-alone(3)12

18

Aerie side-by-side stores (2)5

5

Total Aerie Openings17

23

(1) International license locations are not included in the consolidated store data or the total gross square footage calculation.(2) Aerie side-by-side and Offline side-by-side stores are included in the AE Brand store count as they are considered part of the AE Brand store to which they are attached.(3) Aerie stand-alone stores include 1 OFFLINE opening YTD and 5 OFFLINE stores in the consolidated totals. View source version on businesswire.com: https://www.businesswire.com/news/home/20210902005238/en/

CONTACT: Olivia Messina 412-432-3300 LineMedia@ae.com