American Eagle Outfitters, Inc. · NYSE:AEO

American Eagle Outfitters — Q3 2023 Earnings Presentation

25 slides from American Eagle Outfitters's earnings presentation, Nov 21, 2023

  1. Slide 1: Third Quarter 2023 Investor Presentation

    THIRD QUARTER 2023 Investor Presentation

  2. Slide 2: Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995

    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 concerni

  3. Slide 3: Third Quarter Fiscal 2023 Results

    Third Quarter Fiscal 2023 Results Record third quarter revenue of $1.3 billion, up 5% to last year, with growth across brands and channels. Operating profit of $125 million, up to last year; Second highest since 2012. Aerie posted all-time high third quarter revenue and operating margin; Comparable s

  4. Slide 4: CEO quote on third quarter results

    “I am pleased with our third quarter results which demonstrated the strength of our brands and reflected continued progress on our growth and profit improvement initiatives. Our strategic priorities, underpinned by our customer-first focus and commitment to operational excellence, are propelling us

  5. Slide 5: Key Highlights and Inventory Data

    Key Highlights (unaudited) THIRD QUARTER 2023 2022 TOTAL NET REVENUE CHANGE 5% -3% GROSS MARGIN 41.8% 38.7% SELLING, GENERAL & ADMINISTRATIVE EXPENSES 27.8% 25.1% OPERATING MARGIN 9.6% 9.5% Inventory Data (unaudited) (in thousands) October 28, 2023 October 29, 2022 ENDING INVENTORY $769,315 $797,731

  6. Slide 6: Third Quarter Net Revenue

    Third Quarter Net Revenue Total Company Revenue Up 5%; Digital Revenue Up 10%; Stores Revenue Up 3% AMERICAN EAGLE AERIE TOTAL AEO $1,301M $1,241M $857M $838M $393M $350M 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 Net Revenue Up 2% YOY Net Revenue Up 5% YOY Net Revenue Up 12% YOY Comparable Sales Up 2% YOY Compa

  7. Slide 7: Third Quarter Operating Income

    Third Quarter Operating Income Total Company Operating Income of $125M; Second highest since 2012 AMERICAN EAGLE AERIE CORPORATE & OTHER(1) TOTAL AEO Operating Margin Operating Margin Operating Margin 21.5% 19.3% 9.6% $184M $174M -$135M $125M $118M -$113M $76M $57M 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22

  8. Slide 8: Outlook

    Outlook For Fiscal 2023, management expects revenue to be up mid-single digits to last year, compared to prior guidance for revenue up low single digits. Operating income is expected to be in the range of $340 to $350 million, at the high end of prior guidance of $325 to $350 million. This reflects s

  9. Slide 9: Results by Segment

    Results by Segment (Dollars in Thousands) (unaudited) For the 13 weeks ended For the 39 weeks ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Net Revenue: American Eagle $ 857,378 $ 837,575 $ 2,295,487 $ 2,301,051 Aerie $ 393,042 $ 349,712 $ 1,132,537 $ 1,043,129 Other(1) $

  10. Slide 10: Statement of Operations Summary-GAAP Basis

    Statement of Operations Summary-GAAP Basis (unaudited) 13 Weeks Ended (In thousands) October 28, 2023 % of Revenue October 29, 2022 % of Revenue Total net revenue $1,301,055 100.0% $1,240,583 100.0% Cost of sales, including certain buying, occupancy and warehousing expenses 757,258 58.2% 760,810 61.

  11. Slide 11: Liquidity and Capital Allocation

    Liquidity and Capital Allocation

  12. Slide 12: Capital Allocation Priorities and Cash Returned to Shareholders

    Capital Allocation Priorities 1 Investments to Fuel Aerie’s Growth & Build Capabilities 2 Preserving Balance Sheet Strength 3 of dividends and share repurchases Direct Shareholder Returns through a combination *Includes $634M in net credit available Cash Returned to Shareholders (unaudited) 13 weeks

  13. Slide 13: Real Estate Highlights

    Real Estate Highlights

  14. Slide 14: 3Q Real Estate Summary

    3Q Real Estate Summary (unaudited) QTD Real Estate Summary (unaudited) Consolidated stores at beginning of period 1,184 Consolidated stores opened during the period (1) International license locations are not included in the consolidated AE Brand (2) 8 store data or the total gross square footage ca

  15. Slide 15: Historical Quarterly Store Data by Brand

    Historical Quarterly Store Data by Brand (unaudited) Store Counts Sqft By Brand Aerie & AE SA Aerie SA Off/ine SA AE / Aerie SBS AE / Off/ine SBS AE / Aerie / Off/ine SBSBS Aerie / Off/ine SBS Total Stores (1) AE Offline Weighted Weighted Weighted Weighted Weighted Weighted Weighted Weighted Weighte

  16. Slide 16: AE North America Store Footprint

    AE North America Store Footprint 77 net store closures since FY19, reflecting a 9% reduction in sq. footage Weighted Average Square Footage* FY19 FY20 FY21 FY22 3Q23 5,984 5,904 5,692 5,562 5,442 North America includes stores in the U.S., Canada and Mexico *Square footage excludes Aerie and OFFLINE s

  17. Slide 17: Historical Financials

    Historical Financials

  18. Slide 18: Historical Financial Information - GAAP Basis

    Historical Financial Information - GAAP Basis Fiscal 2022 Fiscal 2023 (In thousands, except per share amounts and store counts) 2018 2019 2020 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 Q3 Total net revenue $4,035,720 $4,308,212 $3,759,113 $5,010,785 $1,055,037 $1,198,124 $1,240,583 $1,496,088 $4,989,833 $1,080,92

  19. Slide 19: Historical Operating Income Reconciliation

    Historical Operating Income Reconciliation This presentation includes information on non-GAAP financial measures (“non-GAAP” or “adjusted”), including consolidated adjusted operating income. This non-GAAP financial information is not based on any standardized methodology prescribed by U.S. generally

  20. Slide 20: REAL Power. REAL Growth. Value Creation Plan

    REAL Power. REAL Growth. Value Creation Plan

  21. Slide 21: Brands designed to empower customers to be their real, authentic selves

    Fueled by optimism, our brands are designed to empower our customers to be their real, authentic selves.

  22. Slide 22: Customer Centric Omni Channel Retailer With Strong Digital Presence

    Customer Centric Omni Channel Retailer With Strong Digital Presence $5.0B $5.0B* Digital 13% 6-Year CAGR $4.3B $1.8B $1.7B $4.0B $3.8B $1.3B $3.8B $3.6B $1.1B COVID IMPACTED $1.0B $0.8B $0.8B $1.7B $3.1B $3.0B $2.9B $2.9B $3.0B $2.8B $2.8B $2.1B 2016 2017 2018 2019 2020 2021 2022 DIRECT REVENUE STOR

  23. Slide 23: Value Creation Plan

    Value Creation Plan • Grow Aerie to $2 Billion+ in Revenue • Drive Sustained Profitable Growth at American Eagle • Leverage Customer-Focused Capabilities • Strengthen ROI Discipline • Power of People, Culture and Purpose

  24. Slide 24: Aerie and American Eagle Growth Roadmaps

    Aerie’s Roadmap to Drive Sustained Profitable $2 Billion+ in Revenue Growth at American Eagle 1 Winning in Intimates & Lounge 1 Refresh Brand DNA 2 Activewear Product Extension 2 Complete The Outfit 3 Market Expansion 3 Optimize Inventory 4 New Customer Acquisition 4 Right-Size Store Footprint

  25. Slide 25: Slide 25

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