American Eagle Outfitters Stock

American Eagle Outfitters, Inc. (AEO) operates as a global specialty retailer.

The company operates and licenses retail stores worldwide and is online at www.ae.com and www.aerie.com in the United States and internationally. The company’s brands are connected under the core tenet of REAL, which is inclusive, optimistic, and empowering and celebrates self-expression.

The company offers a broad assortment of high-quality, on-trend apparel, accessories, and personal care products at affordable prices for men and women under the American Eagle brand, and intimates, apparel, active wear, and swim collections under the Aerie brand. The company sells directly to consumers through its retail channel, which includes the company’s stores and concession-based shop-within-shops. The company operates stores in the United States, Canada, Mexico, Hong Kong, and Japan. The company also has license agreements with third parties to operate American Eagle and Aerie stores and online marketplace businesses throughout Asia, Europe, India, Latin America, and the Middle East.

The company also operates Todd Snyder New York (‘Todd Snyder’), a premium menswear brand; and Unsubscribed, which focuses on consciously made, slow fashion.

The company owns AirTerra, Inc. (‘AirTerra’) and Quiet Logistics, Inc. (‘Quiet Logistics’), creating a new supply chain platform (‘Quiet Platforms’). Quiet Logistics is a logistics company that operates a network of in-market fulfillment centers, locating products closer to need, creating inventory efficiencies, cost benefits and affordable same-day and next-day delivery options for customers and stores. AirTerra is a logistics service and platform that solves e-commerce fulfillment and shipping challenges in a unique and innovative way for retailers and brands of all sizes. Both acquisitions represent an important step in building the company’s supply chain platform, as part of its ongoing supply chain transformation strategy of leveraging scale and innovation to help the company improve service.

Operating Segments

The company operates through two operating segments, American Eagle and Aerie. Additionally, the company’s Todd Snyder and Unsubscribed brands and Quiet Platforms have been identified as separate operating segments.

Brands

American Eagle

American Eagle is a leading American jeans and apparel brand, the go-to destination for casual style. The company’s collections are designed to inspire self-expression and empower the company’s customers to celebrate their own uniqueness. The company has broadened its leadership by producing innovative, sustainable fabrics.

The company operates AE stores. The company offers American Eagle products online at www.ae.com.

Aerie and OFFLINE by Aerie

Aerie is a fast-growing lifestyle brand offering intimates, apparel, activewear, and swim collections. With the #AerieREAL movement, the company celebrates its community by advocating for body positivity and the empowerment of all women. As part of the company’s Real Good promise, the company creates swimsuits, bras, and underwear with materials made from recycled polyester, recycled nylon fabric or sustainably sourced cotton.

OFFLINE by Aerie offers a complete collection of activewear and accessories made for real movement and real comfort. Built on the success of Aerie's leggings and sports bras, OFFLINE's unique take on an active lifestyle celebrates real life - when some days you feel like you can take on the world and other days you need that extra push to get off the couch. The company’s Real Good promise extends to the OFFLINE collections with some of the company’s best-selling fleece, leggings and tees made with the planet in mind.

The company operates Aerie brand stand-alone stores, inclusive of OFFLINE stand-alone stores and OFFLINE side-by-side stores connected to an Aerie brand location. The company also operates Aerie side-by-side stores connected to an AE brand location, four locations with an AE brand location, Aerie brand location and OFFLINE connected as one store, and OFFLINE side-by-side stores connected to an AE brand location. In addition, Aerie brand merchandise is sold online at www.aerie.com and certain items are sold in AE brand stores.

Todd Snyder New York

Todd Snyder offers signature essentials, statement pieces, custom suiting and iconic accessories reflective of quintessential American style. The company operates Todd Snyder stores. The company offers Todd Snyder products online at www.ToddSnyder.com.

Unsubscribed

A truly unique brand offering consciously-made, slow fashion with timeless clothing and accessories, Unsubscribed offers one-of-a-kind vintage pieces that represent socially conscious and ethically produced practices. Each store is a unique experience that respects and highlights the heritage of the space and the surrounding community. The company is making wise choices through plant-first practices, emphasizing local makers, natural fibers, and a desire to produce pieces that stand the test of time in both style and quality.

The company operates Unsubscribed stores. The company offers Unsubscribed products online at www.unsubscribed.com.

Key Business Priorities & Strategy

AEO has the following strategic priorities: fueling Aerie to $2 billion in revenue; and driving sustained profitable growth for American Eagle.

Real Estate

The company operates company-owned stores and licensed store locations. The company’s AE brand stores average approximately 6,400 gross square feet and the company’s Aerie brand stand-alone stores, inclusive of OFFLINE stand-alone stores, average approximately 5,800 gross square feet.

Company-Owned Stores

The company-owned retail stores are located in shopping malls, lifestyle centers, and street locations in the United States, Canada, Mexico, Hong Kong and Japan.

Licensed Operations

The company’s international licensing partners acquire the right to sell, promote, market, and/or distribute various categories of the company’s products in a given geographic area and to source products from the company. International licensees' rights include the right to own and operate retail stores and may include rights to sell in wholesale markets and shop-in-shop concessions and operate online marketplace businesses. The company’s international licensing partners operate in licensed retail stores and concessions, as well as wholesale markets, online brand sites, and online marketplaces in approximately 30 countries.

The company plans to continue to increase the number of locations under license agreements or similar arrangements as part of the company’s disciplined approach to global expansion.

AEO Direct

The company sells merchandise through its digital channels, www.ae.com, www.aerie.com, www.toddsnyder.com, www.unsubscribed.com, and the company’s AEO apps, both domestically and internationally in approximately 80 countries. The company also sells merchandise on various international online marketplaces.

Omni-Channel

In addition to the company’s investments in technology, the company has invested in building omni-channel capabilities to better serve customers and gain operational efficiencies. These upgraded technologies provide a single view of inventory across channels, connecting physical stores directly to the company’s digital store and providing the company’s customers with a more convenient and improved shopping experience. The company’s United States and Canadian distribution centers and the company’s Quiet Logistics regional distribution centers are fully omni-channel and service both stores and digital businesses. The company offers the ability for customers to return products seamlessly via any channel regardless of where the products were originally purchased. The company also offers a variety of channels to fulfill customer orders. These include ‘ship to home,’ which can be fulfilled either through the company’s distribution center or the company’s store sites (buy online, ship from stores) when purchased online or through the company’s app; ‘store pick-up,’ which consists of online orders being fulfilled either in store or curbside, and ‘store-to-door’ where customers order within the company’s store, and the goods are shipped directly to their home.

Merchandise Suppliers

The company designs its merchandise, which is manufactured by third-party factories. During 2022, the company purchased substantially all of the company’s merchandise from non North American suppliers. The company sourced merchandise through approximately 330 vendors located throughout the world, primarily in Asia.

Inventory and Distribution

Merchandise is shipped directly from the company’s vendors, and deconsolidated through trans loaders to the company-owned distribution centers in Hazleton, Pennsylvania and Ottawa, Kansas, the company’s Quiet Logistics regional distribution centers strategically located throughout the United States, or the company’s Canadian distribution center in Mississauga, Ontario. Additionally, some products are shipped directly to stores. The company contracts with third-party distribution centers in Mexico, Hong Kong and Japan to service the company-owned stores and e-commerce operations in those regions.

Regulation

The company and its products are subject to regulation by various federal, state, local, and foreign regulatory authorities. Apparel and other products sold by the company are under the jurisdiction of multiple governmental agencies and regulations, including in the United States, the Federal Trade Commission and the Consumer Products Safety Commission. These regulations relate principally to product labeling, marketing, licensing requirements, and consumer product safety requirements and regulatory testing.

The company is also subject to regulations governing its employees both globally and in the United States, and by disclosure and reporting requirements for publicly traded companies established under existing or new federal or state laws, including the rules and regulations of the Securities and Exchange Commission (‘SEC’) and New York Stock Exchange (‘NYSE’).

Trademarks and Service Marks

The company has registered AMERICAN EAGLE OUTFITTERS, AMERICAN EAGLE, AE, AEO, LIVE YOUR LIFE, AERIE, OFFLINE BY AERIE and various eagle designs with the United States Patent and Trademark Office. The company also has registered or has applied to register substantially all of these trademarks with the registries of the foreign countries in which the company’s stores, e-commerce sites, and/or manufacturers are located and/or where the company’s product is shipped.

The company has registered AMERICAN EAGLE OUTFITTERS, AMERICAN EAGLE, AEO, LIVE YOUR LIFE, AERIE, and various eagle designs with the Canadian Intellectual Property Office. In addition, the company has acquired rights in AE for clothing products and registered AE in connection with certain non-clothing products.

In the United States and in other countries around the world, the company also has registered, or has applied to register, a number of other marks used in the company’s business, including TODD SNYDER, TAILGATE, UNSUBSCRIBED, AE77, AIRTERRA, QUIET LOGISTICS, and the company’s pocket stitch designs.

Seasonality

Historically, the company’s operations have been seasonal, with a large portion of total net revenue and operating income occurring in the third and fourth fiscal quarters (year ended January 2023), reflecting increased demand during the back-to-school and year-end holiday selling seasons, respectively.

History

American Eagle Outfitters, Inc., a Delaware corporation, was founded in 1977.