First quarter GAAP operating loss of $(85) million; Non-GAAP operating loss of $(68) million

Second quarter operating income guidance of $40 to $45 million

On track to complete $200 million accelerated share repurchase program in the second quarter

May 29, 2025

PITTSBURGH — (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the first quarter ended May 3, 2025.

“As we noted in our preliminary release, the first quarter was a challenging period for our business. While we are disappointed with the results, we are taking actions to better position the company and drive stronger performance in the upcoming quarters. Our brands remain resilient. The team is executing with urgency as we look to strengthen both the topline and profit flow-through,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer.

First Quarter 2025 Results:

• Total net revenue of $1.1 billion decreased 5%. Total comparable sales declined 3%.
• Aerie comparable sales decreased 4%. American Eagle comparable sales declined 2%.
• Gross profit was $322 million and the gross margin of 29.6% compared to 40.6% last year.
  • Merchandise margins decreased 960 basis points, driven primarily by inventory writedowns and higher in-season markdowns, as well as increased product costs.
  • Buying, Occupancy and Warehousing (BOW) expenses as a percentage of sales deleveraged 140 basis points.
• Selling, general and administrative expense of $339 million increased 2% and deleveraged 190 basis points as a percentage of sales. Lower compensation and incentives costs were offset by increased advertising.
• The operating loss was $(85) million. The adjusted operating loss of $(68) million excluded $17 million in impairment and restructuring charges primarily related to the company’s supply chain network optimization project, as previously disclosed.
• Diluted loss per share was $(0.36). Adjusted diluted loss per share was $(0.29). Average diluted shares outstanding were 180 million.

Inventory

Total ending inventory decreased 5% to $645 million with units down 5%. Following the writedown, inventory for the season is better aligned to sales trends.

Shareholder Returns

On March 17, 2025, the company announced a $200 million accelerated share repurchase agreement (ASR). At the closing price on March 14, 2025, this equated to approximately 18.1 million shares, representing approximately 9.5% of the company’s fully diluted outstanding stock. The company is on track to complete the ASR in the second quarter.

In addition to the ASR, the company also completed $31 million in open-market share repurchases and paid $22 million via its quarterly cash dividend of $0.125 per share.

Capital Expenditures

Capital expenditures totaled $62 million in the first quarter. The company expects 2025 capital expenditures to be approximately $275 million, compared to previous guidance of approximately $300 million.

Outlook

The company’s fiscal year 2025 outlook remains withdrawn in light of macro uncertainty and as management reviews forward plans in the context of first quarter results.

The second quarter outlook is as follows:

	Second Quarter 2025 Outlook
Revenue	Down 5%
Comparable Sales	Down 3%
Gross Margin	Down YoY
SG&A	Dollars Flat YoY
D&A	Approximately $54 million
Operating Income	$40 to $45 million
Tax Rate	Approximately 25%
Weighted Average Share Count	Approximately 175 million

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About American Eagle Outfitters, Inc.

American Eagle Oufitters, Inc. (NYSE: AEO) is a leading global specialty retailer with a portfolio of beloved apparel brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed. Rooted in optimism, inclusivity and authenticity, AEO’s brands empower every customer to celebrate their unique personal style by offering casual, comfortable, timeless outfitting and high-quality products that are made to last.

AEO Inc. operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through a global network of license partners. Additionally, the company operates a robust e-commerce business across its brands. For more information, visit aeo-inc.com.

Non-GAAP Measures

This press release includes operating income and earnings per share presented on an adjusted or non-GAAP basis, which are non-GAAP financial measures. 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. We believe that this non-GAAP information is useful as an additional means for investors to evaluate our operating performance when reviewed in conjunction with our GAAP Consolidated Financial Statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and, therefore, should not be used exclusively in evaluating our business and operations. The table included in this release reconciles the GAAP financial measures to the non-GAAP financial measures discussed above for the 13 weeks ended May 3, 2025.

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 concerning future events, including, without limitation, the results for the second quarter of fiscal 2025. Words such as “outlook,” “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “may,” “potential,” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. 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 February 1, 2025 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 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 risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate fluctuations in customer demand and respond to changing consumer preferences and fashion trends and to manage our inventory commensurately; the 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 or attract customers to our stores; our inability to respond to changes in e-commerce and leverage omni-channel capabilities; our inability to execute on our key business priorities; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; the impact import tariffs and other trade restrictions imposed by the U.S., China or other countries have had, and may continue to have, on our product costs, as well as the possibility that product costs may be affected by other foreign trade issues, such as, currency exchange rate fluctuations, increasing prices for raw materials, supply chain issues, political instability or other reasons; challenges with information technology systems, including safeguarding against security breaches; changes to U.S. or other countries’ trade policies and tariff and import/export regulations, including, without limitation, uncertainty with respect to the U.S./China trade agreement; 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.

The use of the “company,” “AEO,” “we,” “us,” and “our” in this release refers to American Eagle Outfitters, Inc.

Preliminary Results Reflect An Inventory Write Down to Better Align with Demand Trends, and Asset Impairment Charges

Withdrawing Fiscal Year 2025 Guidance

May 13, 2025 PITTSBURGH — (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today reported preliminary financial results for the first quarter ended May 3, 2025.

For the first quarter of 2025, revenue is expected to be approximately $1.1 billion, which represents a decline of roughly 5% compared to the first quarter of last year. Comparable sales are expected to be down approximately 3%, with American Eagle down 2% and Aerie down 4%. Management expects a GAAP operating loss of approximately $85 million and an adjusted operating loss of approximately $68 million for the quarter.

The adjusted operating loss reflects higher than planned promotional activity in the quarter and an inventory charge of roughly $75 million related to a write-down of spring and summer merchandise. The GAAP operating loss includes an additional asset impairment and restructuring charge of approximately $17 million, primarily related to closing two fulfillment centers as part of its supply chain network optimization project.

At this time, the company is withdrawing its previously provided fiscal year 2025 guidance due to macro uncertainty and as management reviews forward plans in the context of first quarter results.

“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer.

“We have entered the second quarter in a better position, with inventory more aligned to sales trends. Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles,” he continued.

Final First Quarter 2025 Results and Earnings Call

The company expects to report final first quarter 2025 financial results by press release on Thursday May 29, 2025 after market close. The company also plans to host a conference call to discuss the first quarter on Thursday, May 29, 2025 at 4:30pm ET which will be available via live webcast on the company’s website.

Webcast: To listen to the live webcast, click here.

Replay: A replay will be available approximately 30 minutes following the event’s conclusion at this link.

The call will be archived through May 29, 2026 and made available online in the Investor Relations section on AEO’s website, www.aeo-inc.com.

* * * *

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer with a portfolio of beloved apparel brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed. Rooted in optimism, inclusivity and authenticity, AEO’s brands empower every customer to celebrate their unique personal style by offering casual, comfortable, timeless outfitting and high- quality products that are made to last.

AEO Inc. operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through a global network of license partners. Additionally, the company operates a robust e-commerce business across its brands. For more information, visit aeo-inc.com.

Preliminary Results

The company’s actual operating results remain subject to the completion of its quarter-end closing process, which includes review by management and the Audit Committee of the company’s Board of Directors. While carrying out such procedures, the company may identify items that would require it to make adjustments to the preliminary estimates of the results set forth herein. As a result, the company’s actual results could differ from the preliminary results set forth herein and such differences could be material. The preliminary estimates of the company’s financial results included herein have been prepared by, and are the responsibility of, management. The company’s independent registered public accountants have not audited, reviewed or performed any procedures with respect to such preliminary estimates of results. The information presented herein should not be considered a substitute for the financial information the company files with the Securities and Exchange Commission in its Quarterly Report on Form 10-Q for the three months ended May 3, 2025. The company has no intention or obligation to update the preliminary estimates of operating results set forth above prior to the release of its consolidated financial statements as of and for the three months ended May 3, 2025.

Non-GAAP Measures

This press release 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 U.S. generally accepted accounting principles (GAAP) and is 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. We believe that this non-GAAP information is useful as an additional means for investors to evaluate our operating performance when reviewed in conjunction with our GAAP Consolidated Financial Statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and, therefore, should not be used exclusively in evaluating our business and operations. The table included in this release reconciles the GAAP financial measure to the non-GAAP financial measure discussed above for the 13 weeks ended May 3, 2025.

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 concerning future events, including, without limitation, the preliminary results for the first quarter of fiscal 2025. Words such as “outlook,” “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “may,” “potential,” and similar expressions may identify forward- looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. 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 February 1, 2025 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 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 risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate fluctuations in customer demand and respond to changing consumer preferences and fashion trends and to manage our inventory commensurately; the 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 or attract customers to our stores; our inability to respond to changes in e-commerce and leverage omni-channel capabilities; our inability to execute on our key business priorities; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; the impact import tariffs and other trade restrictions imposed by the U.S., China or other countries have had, and may continue to have, on our product costs, as well as the possibility that product costs may be affected by other foreign trade issues, such as, currency exchange rate fluctuations, increasing prices for raw materials, supply chain issues, political instability or other reasons; challenges with information technology systems, including safeguarding against security breaches; changes to U.S. or other countries’ trade policies and tariff and import/export regulations, including, without limitation, uncertainty with respect to the U.S./China trade agreement; 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.

The use of the “company,” “AEO,” “we,” “us,” and “our” in this release refers to American Eagle Outfitters, Inc.

By: Sharon Edelson | Link to article

American Eagle has launched the Live Your Life Affiliate Community, a network of creators, brand advocates and trendsetters dedicated to sharing their love of the label with the world. The community is open to anyone, from seasoned influencers to creators just starting out and members will have the opportunity to create dedicated AE storefronts that can live in their bio/linktree on social media channels.

Live Your Life is the brand’s anthem, first introduced by American Eagle 20 years ago. Today, it’s a call to action meant to inspire the digital generation to enjoy the world around them through optimism, culture and connection.

“We have passionate fans of the brand,” said Craig Brommers, chief marketing officer of American Eagle. “We have a very entrepreneurial generation that we’re targeting with Gen Z. How do you activate that insight. Not only is this an influencer community that can help us create content, it can help engage with various audiences. This is a real business opportunity for both sides of the equation.”

Creator perks include affiliate commission, gifting opportunities, early access to new collections, exclusive discounts and features on AE sites and marketing channels.

American Eagle is giving its fans a lot of latitude to tell their stories and express themselves the way they want to. The brand doesn’t want to cramp their style. An affiliate influencer known for a particular style, say streetwear, will talk about jeans, for example, in the context of her own specific look.

“The one thing I know is that Gen Z has a very high BS meter, so forcing certain influencers to talk about things you want to talk about or the brand wants to talk about is definitely not as successful as doing things more organically and more authentically for the influencers themselves,” said Brommers.

He added that the ranks of affiliates will reach the thousands. “What we have found is that momentum builds momentum and as the Live Your Life community builds, our expectation or hope is that we’ll see a real scaling of the opportunity,” Brommers said. “A year or two ago my team would have been self-selecting a handful of creators. At AE, we work with 600 creators so that will likely go to the thousands in the coming years. We’re intrigued by any opportunity that allows us to scale the influencer community that we work with and this will be one of those levers that we’re going to be curious about and excited about building.”

“Scale is going to be so important going forward,” Brommers added. “We’ll continue to work with the big names out there, but just as important are these mid-level influencers who have a million followers, and also influencers with followers in the tens of thousands. We’ve found those people have a very high level of influence in their very specific communities. It’s kind of the diversity of follower base and diversity of reach that will be really interesting for us to follow.”

That feedback loop is important from a marketing perspective, an operational perspective and in some cases a production perspective so that AE can react very quickly to what it’s seeing in the market. “This world is moving very fast and will continue to move at a faster pace.” Brommers said. “Trends come and go at a furious pace today and this community will allow us to tap into trends almost instantaneously. I could wake up on a Tuesday morning and the trending color is neon green. Our ability to ask our community to create content at scale almost instantaneously will really set us apart from the market. Today, it could take a brand a week to turn around product depending on how nimble and flexible they are. Now, we can turn something around in hours.”

Apps like TikTok have had a profound effect on how the brand conducts business. And when a certain jean is the 65th bestseller one day and is the number five seller the next it’s almost always due to a creator singing its praises, said Brommers. “It’s amazing how dramatically and how quickly these creators can have an impact on the revenue of our business,” he explained.

By: Jean E. Palmieri | Link to article

The new 2,200-square-foot site is in The Street Chestnut Hill.

Todd Snyder is extending his reach in the Boston market.

The designer on Friday will open his second store in the city, at The Street Chestnut Hill at 33 Boylston Street. This unit will join one that opened at the Boston Seaport two years ago.

The new store will be 2,200 square feet and will offer the Todd Snyder men’s collection including suits and sport coats made in Italy, along with upscale essentials such as Japanese denim, Irish linen shirts, selvedge chinos and Italian-made shoes and sandals. The store also features footwear and accessories from some longtime third-party brand partners such as shoes from Rubinacci, Sanders and New Balance, vintage luxury timepieces and jewelry from Foundwell and Moscot eyewear.

“Our goal is to create the ultimate menswear destination,” Snyder said. “Since opening our Boston Seaport location over two years ago, we’ve been thrilled and overwhelmed by its success. Over time, we saw that many of our clients were from Chestnut Hill. What better way to serve their lifestyle and needs than by bringing our collection right to their backyard?”

The store’s design was inspired by Snyder’s trips to London and his favorite hotels, bars and lounges in the city. It features a cash wrap lined in vintage Persian rugs from New York’s ABC Carpet and Home, and metro tiles on the ceiling are intended to reference the London Underground. Each room is filled with 19th and 20th century antiques sourced from Round Top, Texas; London; Paris, and New York City and English-style moldings and custom cases and cabinetry from London are found throughout.

“As The Street continues to grow as a premier retail destination for every member of the family, we couldn’t be more thrilled to welcome Todd Snyder as the latest addition to our curated mix of fashion brands,” said Jeff Rosenthal, general manager of The Street Chestnut Hill. “Known for its refined take on American style and commitment to craftsmanship, Todd Snyder will be a must-visit for our guests seeking versatile, elevated menswear.”

Todd Snyder operates 19 stores with four more in the hopper for this year.

Longtime employees share experiences worth sticking around for

By: Fiona Soltes | Link to article

Reshamar Short wondered if he was in trouble. He was in high school in Mississippi then, working as a courtesy clerk at the local Kroger, and one of his customers headed to the front office to talk to the supervisor. As it turned out, that customer — a district manager — had been impressed with the teen and was wondering why he wasn’t in a position with more responsibility.

What started as a part-time job to help Short pay for fun activities quickly turned into something more. He found a supportive community of people from different generations and backgrounds, all with common focus and goals.

Then, with the loss of his mother to cancer a year later, that community stepped in as a true second family — and even suggested and helped facilitate a transfer to Memphis, Tenn., so he could continue his employment with Kroger while there in college.

Some 30 years later, Short is now senior director of talent acquisition and diversity at Kroger.

“There was continuity just because of people taking genuine interest in me and giving me thoughts, tips and ideas I wasn’t thinking of myself,” he says.

When Short looks around Kroger, he sees many leaders who have been with the company “20, 40, 50, even 60” years. He attributes that to a variety of factors, from culture to diversity. And he means “diversity” in numerous ways.

“We are diverse by design,” he says. It’s not just different regions and different banners such as Kroger, Ralphs, King Soopers, Fry’s, Harris Teeter and a variety of others depending on the area. It’s also the reaffirmation of diversity and inclusion as a company value. Newsweek named The Kroger Co. one of  “America’s Greatest Workplaces for Diversity” for 2024.

“People live it, and they lead with it,” he says. “It’s real. It’s not just a poster on the wall or some performative gesture.”

According to the Bureau of Labor Statistics, the median number of years wage and salary workers have been with the same company was 3.9 in January 2024, down from 4.1 two years prior. In retail, the average job tenure as of 2024 was 2.9 years.

So, what is it that makes people stay? Short highlights culture. Others talk about clear opportunities for growth and promotion, alignment with personal values, variety in job roles and responsibilities, and even leadership that saw things they hadn’t seen in themselves.

‘Great day-to-day relationships’

“I get chills when I think about how I almost left,” says Harvey Russell, retiring manager of culinary at McDonald’s. Russell started working maintenance at the corporate headquarters in 1989 after a year at a franchised restaurant.

“But I didn’t leave, and it’s the best choice I ever made. Ultimately, my management saw the impact I made around the kitchens and continued to invest in me, so I knew it was the right place for me, and stayed to build a long-term career here.”

Russell always had his own vision and made sure to leave his mark on projects, he says, “and people applauded that and helped me continue to move forward.”

Russell’s roles have included property management in addition to maintenance, food technologist and food supervisor. He worked on the Leaps and Bounds indoor play-place team and the Hearth Express hearth-baked bread project. Some roles were challenging due to personalities on the team, he says, though he learned “a great deal” and stretched his skills.

He has enjoyed his most recent job in menu innovation the most. He’s been able to meet “amazing people” and to travel, including going to the opening ceremony of the London Olympics and seeing Queen Elizabeth II.

“But most importantly,” he says, “I’ve been able to be part of some great day-to-day relationships in this role.” McDonald’s offers recognition programs including sabbaticals, internal awards and incentive plans based on tenure, he says, and the company encourages camaraderie and team-building.

Looking back, he says, he would tell that young worker in his early days to keep praying to get himself through the tough times. “I’d also tell him to keep it real,” he says. “Some days are hard, and that’s OK. You may not get along with everyone, and that’s OK. Don’t let that stuff stress you out. Just keep it real.”

‘I still have lots to learn’

Erin McNamara, in the meantime, would give her younger self the same advice she gives herself today: “Be open to learning and be open to change.”

McNamara, who is senior vice president, brand and product strategy at American Eagle Outfitters, would also tell that young woman to leverage the skillset she knew she had. “I had mentors and bosses who really pulled it out of me,” she says. “But I would tell 20-year-old me to do that more off the bat. You know yourself better than anyone, and you know what you bring to the table.”

McNamara joined the company as an assistant buyer trainee fresh out of college in 2005. The company came onto the University of Pittsburgh campus, where she was studying business marketing. She was interested in working in retail buying and fashion, and AEO was “a cool brand I grew up loving.” She also was intrigued by the employees she met.

“Everyone wonders if the grass is greener in some spots,” she says. “But I have always loved what I was doing here, and I feel like I’ve been consistently challenged throughout my career. I feel like I still have lots to learn.” She also has loved the people she has worked with, so she’s “never really been given a reason to leave.”

The “people piece” is strong at AEO, creating a “better together” culture of partnership and collaboration, even across fences, she says. McNamara often talks to newcomers about the company being a wonderful place to grow a career and to carve a unique path.

Encouragement and mentoring

Scott McBride, head of global asset protection at AEO, also considers the company a place to “grow and thrive.” He’s been with AEO for more than 30 years, starting as a part-time store associate in 1993. Back then, he says, it was more a mall-based outdoors and specialty retailer than the global company it has become.

McBride had already served in the U.S. Marine Corps and worked a couple of other jobs, and it wasn’t long after joining AEO that he was promoted to assistant store manager and then store manager. When the company expanded and its new CEO determined asset protection was needed, McBride was tapped as an ideal candidate for the team.

“I said, ‘I have no idea what you’re talking about. I have never heard of that career, ever.’” But he was older and more mature than the average store manager, and he was willing. The new head of asset protection at the time had also worked his way up through the retail ranks, and had a military background of his own.

“I equate my philosophy of internal promotion, not only for myself but also for my team, to the military,” McBride says. “There’s never been a sergeant major that wasn’t a private. There’s never been a general that wasn’t a lieutenant. The military creates their own leaders, and develops their own talent within their ranks. They teach, they train, they challenge people to do more, better, farther, whatever it is that they perceive the need. They will put people in charge of it and then figure it out.”

He does everything possible, he says, to help bring people up, including encouragement and mentoring.

McBride, who has eight direct reports and oversees about 100 people within asset protection, also started an internal podcast, Keep People Informed. Over the past couple of years, he’s done more than 50 episodes with volunteers from his department and business partners.

“It does two things,” he says. “It not only helps us tell the story about longevity, but also about their value. It describes in a story format the value of this individual to the organization.” Guests talk about where they came from, what they do and what they’re excited about. It serves to educate the entire organization, McBride says, as well as “empowers and motivates the individual.”

McBride often contributes to the company’s Life@AEO internal communications platform, and he values creativity. He also values patience, and he encourages it in others.

“You have to have the self-improvement engine really fired up all the time,” he says. When he hears someone ask, “When am I going to get … ” his thought is, “You’re going to get when you deserve. What have you done to deserve? Are you reading? Are you writing? Are you studying? Watching YouTube videos on things you don’t know anything about? How are you improving your value? Because now your thoughts are organized in a way that’s more effective for the organization and can be applied to what we do.”

Changing companies can certainly mean new opportunities. At the same time, when companies match awareness of employee strengths, training opportunities and clear paths for growth with employees who want to build on what’s already working, longevity and loyalty can be the result.

“I don’t know if I would have done anything different,” McNamara says. “I am pretty pleased with where the path has led me.”

March 17, 2025

PITTSBURGH — (BUSINESS WIRE) – American Eagle Outfitters Inc. (NYSE: AEO) today announced that it has entered into an accelerated share repurchase agreement (ASR) with Bank of America, N.A. to repurchase $200 million of its common stock. This equates to approximately 18.1 million shares, at the closing price on March 14, 2025 and represents approximately 9.5% of the company’s fully diluted outstanding stock. The company intends to complete the ASR in connection with its existing share repurchase authorization of 68.5 million shares. 

“We are pleased to announce an accelerated share repurchase program, which reflects our strong capital position and confidence in our long-term strategic growth plan. This program, combined with our quarterly cash dividend, underscores our commitment to a balanced approach to capital allocation and delivering strong returns to shareholders,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer. 

* * * *

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer with a portfolio of beloved apparel brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed. Rooted in optimism, inclusivity and authenticity, AEO’s brands empower every customer to celebrate their unique personal style by offering casual, comfortable, timeless outfitting and high-quality products that are made to last.

AEO Inc. operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through a global network of license partners. Additionally, the company operates a robust e-commerce business across its brands. For more information, visit 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 management’s expectations or beliefs concerning future events. 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 “outlook,” “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “may,” “potential,” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. 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 February 3, 2024 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 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 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; the possibility that product costs are adversely affected by foreign trade issues (including import tariffs and other trade restrictions imposed by the U.S., China or other countries), currency exchange rate fluctuations, increasing prices for raw materials, supply chain issues, political instability or other reasons; 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.

The use of the “company,” “AEO,” “we,” “us,” and “our” in this release refers to American Eagle Outfitters, Inc.

AEO Inc. Reports Strong Fourth Quarter and Fiscal Year 2024 Results; Provides Fiscal Year 2025 Outlook

Fourth quarter comparable sales growth of 3%, operating income of $142 million

• Record Aerie revenue with comp growth of 6%; American Eagle comp growth of 1%

Fiscal year comparable sales growth of 4%; record revenue with significant profit expansion

• Record Aerie revenue with comp growth of 5%. American Eagle comp growth of 3%
• GAAP operating income of $427 million. Adjusted operating income up 19% to $445 million

Over $190 million returned to shareholders through shares repurchases in 2024; Board of Directors authorizes additional 50 million shares for repurchase

March 12, 2025

PITTSBURGH — (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the fourth quarter and fiscal year 2024 ended February 1, 2025.

“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,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer. 

“Entering 2025, the first quarter is off to a slower start than expected, reflecting less robust demand and colder weather. While we anticipate improvement as the Spring season gets underway, we are also taking proactive steps to strengthen the top-line, manage inventory and reduce expenses. As we navigate through an uncertain consumer and operating landscape, we will also remain focused on our long-term strategic priorities,” he added.

Fourth Quarter 2024 Results:

• Fourth quarter 2024 results are presented for the 13 weeks ended February 1, 2025 compared to the 14 weeks ended February 3, 2024. Comparable sales metrics are presented for the 13 weeks ended  February 1, 2025 compared to the 13 weeks ended February 3, 2024.
• Total comparable sales increased 3%, following 8% reported comp growth last year.
• Total net revenue of $1.6 billion declined 4%. This included approximately $85 million of adverse impact from one less selling week and the retail calendar shift.
• Aerie comparable sales increased 6% on a 13% increase last year. American Eagle comparable sales grew 1% following 6% growth last year.
• Gross profit of $599 million. Gross margin of 37.3% reflected higher freight and product costs, offset by lower markdowns. BOW costs were roughly neutral.
• Selling, general and administrative expense of $402 million decreased 6% and leveraged 40 basis points. The improved rate was due to lower compensation, including incentive costs, partially offset by increased advertising.
• Operating income rose slightly to $142 million, reflecting an operating margin of 8.9%. This included an approximately $20 million adverse impact from one less selling week and the retail calendar shift.
• Diluted earnings per share was $0.54. Average diluted shares outstanding were 193 million.

Fiscal Year 2024 Results:

• Fiscal Year 2024 results are presented for the 52 weeks ended February 1, 2025 compared to the 53 weeks ending February 3, 2024. Comparable sales metrics are presented for the 52 weeks ended February 1, 2025 compared to the 52 weeks ended February 3, 2024.
• Total comparable sales increased 4%, following 3% reported comp growth last year.
• Total net revenue of $5.3 billion increased 1%. This included an approximately $60 million adverse impact from one less selling week.
• Aerie comparable sales increased 5% on 8% growth last year. American Eagle comparable sales increased 3% following 1% growth last year.
• Gross profit of $2.1 billion increased 3%. Gross margin of 39.2% expanded driven by lower rent, utilities and delivery expenses, with a partial offset from higher markdowns.
• Selling, general and administrative expense of $1.4 billion was roughly in-line to last year and leveraged 30 basis points. The improved rate was due to lower compensation, including incentive costs, partially offset by increased advertising.
• GAAP Operating income of $427 million. Adjusted operating income of $445 million reflected an operating margin of 8.3%. This included an approximately $5 million adverse impact from one less selling week.
• GAAP diluted earnings per share was $1.68. Adjusted diluted earnings per share was $1.74. Average diluted shares outstanding were 196 million.

Inventory

Total ending inventory decreased 1% to $637 million. Inventory is healthy and well positioned for the Spring season.

Shareholder Returns

In the fourth quarter the company repurchased 3.5 million shares for $60 million, bringing full-year repurchases to 9.5 million shares for $191 million. The company also returned approximately $24 million in cash to shareholders through its quarterly cash dividend of $0.125 per share, bringing year-to-date cash dividends to $96 million.

New Share Repurchase Authorization

On March 11, 2025, the company’s Board of Directors authorized an additional 50 million shares for repurchase under its existing authorization, increasing the total shares available for repurchase to 68.5 million through February 3, 2029.

Share repurchases may be made from time to time in open market or private transactions in such manner as may be deemed advisable from time to time (including, without limitation, pursuant to one or more 10b5-1 trading plans, accelerated share repurchase programs, and any other method that the company may deem advisable) and may be discontinued at any time.

Capital Expenditures

Capital expenditures totaled $65 million in the fourth quarter and $223 million for fiscal year 2024. The company expects 2025 capital expenditures to be approximately $300 million. This includes a one-time $40 million cost of relocating to a new Manhattan office, which provides more favorable lease terms.

Outlook

The company’s outlook reflects near-term headwinds in the consumer and macroeconomic operating environment, balanced with proactive steps the company is taking to strengthen the top-line and reduce expenses.

	First Quarter 2025 Outlook	Fiscal Year 2025 Outlook
Revenue	Mid-single digit decline	Low-single digit decline
Gross Margin	Down YoY	Down YoY
SG&A	Flat dollars	Low-single digit dollar decline
D&A	–	Approximately $230M
Operating Income	$20 to $25 million	$360 to $375 million
Tax Rate	–	Approximately 25%
Weighted Average Share Count	–	Low 190 million*
Capital Expenditures	–	Approximately $300 million

*Does not include repurchase activity beyond offsetting internal grants

Webcast and Supplemental Financial Information

Management will host a conference call and real time webcast today at 4:30pm 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.

* * * *

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer with a portfolio of beloved apparel brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed. Rooted in optimism, inclusivity and authenticity, AEO’s brands empower every customer to celebrate their unique personal style by offering casual, comfortable, timeless outfitting and high-quality products that are made to last.

AEO Inc. operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through a global network of license partners. Additionally, the company operates a robust e-commerce business across its brands. For more information, visit aeo-inc.com.

Non-GAAP Measures

This press release includes operating income and diluted earnings per share presented on an adjusted or non-GAAP basis, which are non-GAAP financial measures. These financial measures are not based on any standardized methodology prescribed by 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. We believe that this non-GAAP information is useful as an additional means for investors to evaluate our operating performance when reviewed in conjunction with our GAAP Consolidated Financial Statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and, therefore, should not be used exclusively in evaluating our business and operations. The tables included in this release reconcile the GAAP financial measures to the non-GAAP financial measures discussed above for the 52 weeks ended February 1, 2025 and the 13 and 53 weeks ended February 3, 2024.

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 concerning future events, including, without limitation, the outlook for first fiscal quarter and annual fiscal 2025. Words such as “outlook,” “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “may,” “potential,” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. 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 February 3, 2024 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 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 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; the possibility that product costs are adversely affected by foreign trade issues (including import tariffs and other trade restrictions imposed by the U.S., China or other countries), currency exchange rate fluctuations, increasing prices for raw materials, supply chain issues, political instability or other reasons; 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.

The use of the “company,” “AEO,” “we,” “us,” and “our” in this release refers to American Eagle Outfitters, Inc.