American Eagle Outfitters, Inc. · NYSE:AEO

American Eagle Outfitters — Q4 2023 Earnings Presentation

21 slides from American Eagle Outfitters's earnings presentation, Jan 8, 2024

  1. Slide 1: Fourth Quarter & Fiscal Year 2023 Investor Presentation

    FOURTH QUARTER & FISCAL YEAR 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 management’s expectations or beliefs

  3. Slide 3: Non-GAAP Measures

    Non-GAAP Measures This presentation includes information on non-GAAP financial measures (“non-GAAP” or “adjusted”), including consolidated adjusted gross margin, operating income, net income and net income per diluted share, excluding non-GAAP items. These financial measures are not based on any stand

  4. Slide 4: Fourth Quarter 2023 Results

    Fourth Quarter 2023 Results ● Record fourth quarter revenue of $1.7 billion rose 12% to last year ● Aerie achieved all-time high fourth quarter revenue with comps up 13% ● American Eagle comps increased 6% reflecting continued sequential improvement

  5. Slide 5: CEO Commentary on Fourth Quarter Execution

    “I am proud of how the teams executed in the fourth quarter. As our profit improvement initiatives took hold, we delivered a material improvement in business, underscoring the power of our brands, operations and strategic focus. Customers responded well to our strong merchandise collections fueling

  6. Slide 6: Key Highlights and Inventory Data (unaudited)

    Key Highlights (unaudited) FOURTH QUARTER* 2023 2022 TOTAL NET REVENUE CHANGE 12% -1% GROSS MARGIN** 37.3% 33.9% SELLING, GENERAL & ADMINISTRATIVE EXPENSES 25.4% 23.5% OPERATING MARGIN** 8.4% 6.4% *The fourth quarter of Fiscal 2023 represents the 14 weeks ended February 3, 2024. The fourth quarter o

  7. Slide 7: Results by Segment (Dollars in Thousands) (unaudited)

    Results by Segment (Dollars in Thousands) (unaudited) Fourth Quarter Ended* Fiscal Year Ended** February 3, 2024 January 28, 2023 February 3, 2024 January 28, 2023 (1) The Todd Snyder brand, Unsubscribed brand, and Quiet Net Revenue: Platforms have been identified as separate operating American Eagle

  8. Slide 8: Statement of Operations Summary-GAAP Basis (unaudited)

    Statement of Operations Summary-GAAP Basis (unaudited) Fourth Quarter Ended* (In thousands) February 3, 2024 % of Revenue January 28, 2023 % of Revenue Total net revenue $1,678,910 100.0% $1,496,088 100.0% Cost of sales, including certain buying, occupancy and warehousing expenses 1,064,324 63.4% 98

  9. Slide 9: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation 14 Weeks Ended February 3, 2024 Gross Operating Income Tax Effective Net Earnings per (in thousands, except per share amounts) Profit¹ Income² Expense Tax Rate Income Diluted Share GAAP Basis $614,586 $9,236 $9,386 59.8% $6,316 $0.03 % of Revenue 36.6% 0.6% 0.4% Add:

  10. Slide 10: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation 13 Weeks Ended January 28, 2023 Operating Debt-Related Income Tax Effective Net Earnings per (in thousands, except per share amounts) Income¹ Charges² Expense Tax Rate Income Diluted Share GAAP Basis $73,582 $4,655 $16,891 23.6% $54,591 $0.28 % of Revenue 4.9% 3.6% Ad

  11. Slide 11: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation 53 Weeks Ended February 3, 2024 Gross Operating Income Tax Effective Net Earnings per (in thousands, except per share amounts) Profit¹ Income¹ ² Expense Tax Rate Income Diluted Share GAAP Basis $2,024,578 $222,717 $69,820 29.1% $170,038 $0.86 % of Revenue 38.5% 4.2% 3

  12. Slide 12: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation 52 Weeks Ended January 28, 2023 Operating Debt-Related Income Tax Effective Net Earnings per (in thousands, except per share amounts) Income¹ Charges² Expense Tax Rate Income Diluted Share GAAP Basis $247,047 $64,721 $53,357 29.9% $125,136 $0.64 % of Revenue 5.0% Add:

  13. Slide 13: Liquidity and Capital Allocation

    Liquidity and Capital Allocation

  14. Slide 14: Capital Allocation Priorities and Cash Returned to Shareholders

    Capital Allocation Priorities 1 Investments to Fuel Brand 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) Fourth Qua

  15. Slide 15: Balance Sheet Summary (unaudited)

    Balance Sheet Summary (unaudited) ASSETS (In thousands) February 3, 2024 January 28, 2023 January 29, 2022 Cash and cash equivalents $354,094 $170,209 $430,770 Short-term investments 100,000 - - Merchandise inventory 640,662 585,083 553,458 Accounts receivable, net 247,934 242,386 286,683 Prepaid ex

  16. Slide 16: Real Estate Highlights

    Real Estate Highlights

  17. Slide 17: 4Q Real Estate Summary (unaudited)

    4Q Real Estate Summary (unaudited) QTD Real Estate Summary (unaudited) Consolidated stores at beginning of period 1,199 Consolidated stores opened during the period (1) International license locations are not included in the consolidated store AE Brand (2) 3 data or the total gross square footage ca

  18. Slide 18: Historical Quarterly Store Data by Brand (unaudited)

    Historical Quarterly Store Data by Brand (unaudited) (1) Total Stores includes Todd Snyder and Unsubscribed *The fourth quarter of Fiscal 2023 represents the 14 weeks ended February 3, 2024. The fourth quarter of Fiscal 2022 represents the 13 weeks ended January 28, 2023.

  19. Slide 19: Historical Financials

    Historical Financials

  20. Slide 20: 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 Q4* 2023** 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 $4,989,83

  21. Slide 21: Legend of Numerical Guidance

    Legend of Numerical Guidance Description % Range Flat 0.00% Slight 0.1-0.9% Low Single Digits 1.0-3.3% Mid Single Digits 3.4-6.6% High Single Digits 6.7-9.9% Low Double Digits 10.0-12.9% Low Teens 13.0-13.3% Mid Teens 13.4-16.6% High Teens 16.7-19.9% Low Twenties 20.0-23.3% Mid Twenties 23.4-26.6% H

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