American Eagle Outfitters, Inc. · NYSE:AEO

American Eagle Outfitters — Q4 2024 Earnings Presentation

30 slides from American Eagle Outfitters's earnings presentation, Mar 12, 2025

  1. Slide 1: Fourth Quarter & Fiscal Year 2024 Investor Presentation

    FOURTH QUARTER & FISCAL YEAR 2024 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 management’s expectations or beliefs

  3. Slide 3: Non-GAAP Measures

    Non-GAAP Measures This presentation includes operating income presented on an adjusted or non-GAAP basis, which is a non-GAAP financial measure. This financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similar measures presented by oth

  4. Slide 4: CEO commentary on 2024 progress and 2025 outlook

    “2024 demonstrated significant progress on our Powering Profitable Growth Plan. The team delivered strong operating profit growth with positive momentum across our brands and channels as well as disciplined expense management and operating efficiencies.” “Entering 2025, the first quarter is off to a

  5. Slide 5: U.S. market rankings for jeans, leggings, activewear and intimates

    Rankings reflect U.S. Market Only; Source: Circana, LLC, Retail Tracking Service, US, Jeans, Wearer Age: 15 – 25; Women’s Leggings, Activewear, & Intimates, Wearer Age: 15 – 35; Dollar Share, Feb 2023 – Jan 2025 5

  6. Slide 6: Powering Profitable Growth: Amplify, Execute, Optimize

    Powering Amplify Execute Optimize Our Brands With Financial Discipline Operations Grow AE, powering Organization Leverage best-in-class denim and expansion structured to deliver operating capabilities into category consistent profit to fuel our growth adjacencies; growth and and profit roadmap. Fuel

  7. Slide 7: A Successful First Year of Powering Profitable Growth

    A Successful First Year of Powering Profitable Growth Strong 4Q Results, Exceeding Guidance Record Holiday sales; +3% comps +1% +6% Adj. Operating Margin +50 bps to 8.9%(1) Comp Growth Comp Growth Successful First Year of Powering Profitable Growth Record revenue; +4% comps Adj. Operating Income +19%

  8. Slide 8: 2024 Wins

    2024 Wins AE Women's Strength OFFLINE Expansion Successful Aerie Apparel Growth Growth Across Brands and Channels Record Customer Count Created Savings and Efficiencies 8

  9. Slide 9: Fiscal 2024 Comps +4%, Adj. Operating Income +19%

    Fiscal 2024 Comps +4%, Adj. Operating Income +19% (1) 52 weeks ended February 1, 2025 compared to 53 weeks ended February 3, 2024 (1) Comparable sales metrics are presented for the 52 weeks ended February 1, 2025 compared to the 52 weeks ended February 3, 2024. Comparable sales includes sales from A

  10. Slide 10: Fourth Quarter 2024 Comps

    Fourth Quarter 2024 Comps 13 weeks ended February 1, 2025 compared to 14 weeks ended February 3, 2024 (1) Comparable sales metrics are presented for the 52 weeks ended February 1, 2025 compared to the 52 weeks ended February 3, 2024. Comparable sales includes sales from American Eagle, Aerie, Todd S

  11. Slide 11: Fourth Quarter 2024 Operating Income

    Fourth Quarter 2024 Operating Income 13 weeks ended February 1, 2025 compared to 14 weeks ended February 3, 2024 (1) Results are shown on an adjusted basis. See accompanying tables for a reconciliation of GAAP to non-GAAP results for fourth quarter fiscal 2023. 11 11

  12. Slide 12: Balanced Reinvestment and Returns to Shareholders

    Balanced Reinvestment and Returns to Shareholders $287M Cash Returned to Shareholders V Strong Balance Sheet V Healthy Liquidity \ JV 50M Additional Shares Authorized for Repurchase ) AE Owe | 12

  13. Slide 13: 2025 Priorities

    2025 Priorities Strengthen top-line performance Drive continued expense efficiencies Build on wins in AE Women’s Reinvigorate AE Men's Fuel Aerie soft apparel and activewear Re-energize Aerie intimates 1 3

  14. Slide 14: First Quarter 2025 Guidance

    First Quarter 2025 Guidance Mid-Single Digit Revenue Decline $20M to $25M Operating Income Gross Margin Down SG&A Dollars Flat 14

  15. Slide 15: Fiscal Year 2025 Guidance

    Fiscal Year 2025 Guidance Low-Single Digit Revenue Decline $360M to $375M Operating Income Gross Margin Down SG&A Dollars Down Low-Single Digits D&A ~$230 Million Tax Rate ~25% Weighted Average Share Count of Low-190 million(1) (1) Does not include repurchase activity beyond offsetting internal gran

  16. Slide 16: Appendix

    Appendix 16

  17. Slide 17: Key Highlights and Inventory Data (unaudited)

    Key Highlights (unaudited) FOURTH QUARTER 2024 2023 TOTAL NET REVENUE CHANGE* -4% 12% COMPARABLE SALES GROWTH 3% 8% GROSS MARGIN** 37.3% 37.3% SELLING, GENERAL & ADMINISTRATIVE EXPENSES 25.0% 25.4% OPERATING MARGIN*** 8.9% 8.4% *The shift in the retail calendar negatively impacted revenue by approxi

  18. Slide 18: Revenue by Segment (unaudited)

    Revenue by Segment (unaudited) Fourth Quarter Ended* Fiscal Year Ended** (in thousands) February 1, 2025 February 3, 2024 February 1, 2025 February 3, 2024 Net Revenue: American Eagle $ 1,000,935 $ 1,066,092 $ 3,385,231 $ 3,361,579 Aerie 539,673 $ 537,462 1,738,414 1,670,000 Other 74,906 $ 159,576 2

  19. Slide 19: Statement of Operations Summary - GAAP Basis (unaudited)

    Statement of Operations Summary-GAAP Basis (unaudited) Fourth Quarter Ended* (In thousands) February 1, 2025 % of Revenue February 3, 2024 % of Revenue Total net revenue $1,604,633 100.0% $1,678,910 100.0% Cost of sales, including certain buying, occupancy and warehousing expenses 1,005,458 62.7% 1,

  20. Slide 20: GAAP to Non-GAAP Reconciliation (unaudited)

    GAAP to Non-GAAP Reconciliation (unaudited) 52 Weeks Ended February 1, 2025 Income Tax Effective Tax (in thousands, except per share amounts) Operating Income Expense Rate Net Income Earnings per Diluted Share GAAP Basis $ 427,303 $ 112,854 25.5% $ 329,380 $ 1.68 % of Revenue 8.0% 6.2% Add: Impairme

  21. Slide 21: GAAP to Non-GAAP Reconciliation (unaudited)

    GAAP to Non-GAAP Reconciliation (unaudited) 14 Weeks Ended February 3, 2024 Gross Operating Income Tax Effective Tax Net Earnings per Diluted (in thousands, except per share amounts) Profit ¹ Income¹ ² Expense Rate Income Share GAAP Basis $614,586 $9,236 $9,386 59.8% $6,316 $0.03 % of Revenue 36.6%

  22. Slide 22: GAAP to Non-GAAP Reconciliation (unaudited)

    GAAP to Non-GAAP Reconciliation (unaudited) 53 Weeks Ended February 3, 2024 Income Tax Effective Tax Earnings per Diluted (in thousands, except per share amounts) Gross Profit ¹ Operating Income ¹ ² Expense Rate Net Income Share GAAP Basis $2,024,578 $222,717 $69,820 29.1% $170,038 $0.86 % of Revenu

  23. Slide 23: Balance Sheet Summary (unaudited)

    Balance Sheet Summary (unaudited) ASSETS (In thousands) February 1, 2025 February 3, 2024 Cash and cash equivalents $ 308,962 $ 354,094 Short-term investments 50,000 100,000 Merchandise inventory 636,655 640,662 Accounts receivable, net 262,365 247,934 Prepaid expenses 76,088 65,082 Other current as

  24. Slide 24: Cash Returned to Shareholders (unaudited)

    Cash Returned to Shareholders (unaudited) Fourth Quarter* Ended Fiscal Year** Ended (In millions, except per share amounts) February 1, 2025 February 3, 2024 February 1, 2025 February 3, 2024 Cash used for share repurchases $59.6 $20.3 $ 190.9 $20.3 Number of shares repurchased 3.5 1.0 9.5 1.0 Cash

  25. Slide 25: Real Estate Highlights

    Real Estate Highlights 25

  26. Slide 26: 4Q Real Estate Summary (unaudited)

    4Q Real Estate Summary (unaudited) Consolidated stores at beginning of period 1,186 Consolidated stores opened during the period AE Brand (1) 8 Aerie (incl. OFFL/NE) (2) 5 Unsubscribed 1 (1) AE Brand includes AE stand alone locations, AE/Aerie Consolidated stores closed during the period side-by sid

  27. Slide 27: Historical Quarterly Store Data by Brand (unaudited)

    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

  28. Slide 28: Historical Financials

    Historical Financials 28

  29. Slide 29: Historical Financial Information - GAAP Basis (unaudited)

    Historical Financial Information - GAAP Basis (unaudited) Fiscal 2023 Fiscal 2024 (In thousands, except per share amounts and store counts) 2019 2020 2021 2022 Q1 Q2 Q3 Q4* 2023** Q1 Q2 Q3 Q4* 2024** Total net revenue $4,308,212 $3,759,113 $5,010,785 $4,989,833 $1,080,926 $1,200,879 $1,301,055 $1,67

  30. Slide 30: Guidance description and percentage range definitions

    DESCRIPTION Flat Slight Low Single Digits Mid Single Digits High Single Digits Low Double Digits Low Teens Mid Teens High Teens Low Twenties Mid Twenties High Twenties % RANGE 0.00% 0.1-0.9% 1.0-3.3% 3.4-6.6% 6.7-9.9% 10.0-12.9% 13.0-13.3% 13.4-16.6% 16.7-19.9% 20.0-23.3% 23.4-26.6% 26.7-29.9%

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