We are excited to welcome artist and poet Cleo Wade into the #AerieREAL Role Model family! Cleo is on a mission to tell the world about the power of love, kindness and acceptance. She is the author of Heart Talk: Poetic Wisdom for a Better Life, her first book. Get to know more about Cleo here.

We’re so proud to celebrate our 9th year partnering with Bright Pink®, a non-profit dedicated to prevention and early detection of breast and ovarian cancers in young women. We’ll be honoring Breast Cancer Awareness Month all October.

To kick off the month, Bright Pink CEO, Katie Thiede, shared the love about our partnership: “We’re thrilled to partner with Aerie for the 9th consecutive year together! Our partnership aims to spark important conversations among young women and inspire them to be proactive with their health, while raising critical funds to fuel Bright Pink’s life-saving mission. Since 2010, together we have raised more than $1 million to empower women to know their risk for breast & ovarian cancer and take action. Bright Pink’s flagship program, Assess Your Risk, has helped more than one million women learn their risk and take steps to manage it. We’re excited to share this quiz with Aerie girls through our partnership this fall because the more you know, the better prepared you are to take control of your health and your future!”

Bright Pink’s website offers an array of life-saving resources, from the Assess Your Risk™ quiz Katie mentioned to monthly Breast Health Reminders™, where you can get alerts right on your phone to remind you to check your girls.

Wear your support proudly with our limited-edition sports bra and legging! 100% of US sales in stores and at Aerie.com benefit the non-profit.

We can all use a little more inspiration! This October, you can get a free pouch and mirror decals with your $5+ donation to Bright Pink in US stores and Rethink Breast Cancer in Canada. These mirror decals act as a daily reminder to take care of your girls!

Want to learn more about our partnership with Bright Pink? Read about it here!

NEW YORK — (September 25, 2018) – American Eagle (NYSE: AEO) announces its continued partnership with Rock the Vote through the launch of a limited-edition t-shirt collection, featuring four customer designs. A nationwide contest asked customers to create an original artwork that inspires them to speak up and make their voice heard. Designs by Nicole Fleisher, Kahlia Shearer, Alessandra Angiello and Hayley Fitzsimmons were chosen to be to be sold online at www.ae.com and in 262 American Eagle stores across the country beginning September 28. One hundred percent of sales will support Rock the Vote’s nonpartisan mission to build the political power of young people.

“Our customers are the future of our country and American Eagle is committed to empowering youth to make their voice heard, while providing them with a platform for self-expression,” said Chad Kessler, American Eagle Global Brand President. “Our continued partnership with Rock the Vote ensures that American Eagle is doing its part to highlight the importance of voter education and registration.”

In addition to the exclusive AE x Rock the Vote t-shirt collaboration, the brand also is sponsoring Democracy Class in more than 2,000 schools across the country. Created by Rock the Vote, Democracy Class is a free curriculum that educates high school students about the importance and history of voting and pre-registers and registers them to vote.

“The innovative work American Eagle is doing through their continued partnership with Rock the Vote plays a pivotal role in ensuring that youth across the nation engage in our electoral process not only in the upcoming consequential midterm elections, but long into the future,” said Carolyn DeWitt, Rock the Vote President and Executive Director. “American Eagle’s constant commitment to the youth vote and to making sure America’s youth understand the history and importance of voting is fundamental and inspiring.”

American Eagle encourages customers to register to vote at www.ae.com/rockthevote. Support of the Rock the Vote initiative is an extension of the #AExME campaign, which features real customers styling themselves in their own spaces, and celebrates the freedom, individuality and difference in today’s youth culture. Follow along @americaneagle and #AExME on social, and www.ae.com/aexme.

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About American Eagle

Since 1977, American Eagle has offered an assortment of specialty apparel and accessories for men and women that enables self-expression and empowers our customers to celebrate their individuality. The brand has broadened its leadership in jeans by producing innovative fabric with options for all styles and fits for all at a value. We aren’t just passionate about making great clothing, we’re passionate about making real connections with the people who wear them. Visit www.ae.com to find your perfect pair of #AEJeans.

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle Outfitters® and Aerie® brands. The company operates more than 1,000 stores in the United States, Canada, Mexico, China and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 200 international locations operated by licensees in 25 countries.  For more information, please visit www.ae.com.

About Rock the Vote

Rock the Vote is a nonpartisan nonprofit dedicated to building the political power of young people. For nearly 30 years, Rock the Vote has revolutionized the way we use culture, music, art and technology to engage young people in politics, registering and turning out millions of young voters. During the last seven Presidential elections, Rock the Vote and its partners coordinated the largest voter registration drives for young people that added nearly 8 million new voters to the rolls and consistently turns out its voters more than 30 points above the national youth average. Rock the Vote fights for voting rights to ensure that all eligible voters can exercise their right to vote and promotes civic education to ensure young voters to have the resources and information they need to participate in our civic process. Learn more at rockthevote.org and follow us on Twitter, Facebook, and Instagram @rockthevote.

Total Revenue Increased 14%, Comparable Sales Rise 9%
Stores Drive Highest Comp since 2015, Digital Continues to Grow at Double-Digit Pace
EPS of 34 cents compared to 12 cents last year

PITTSBURGH — (BUSINESS WIRE) — American Eagle Outfitters, Inc. (NYSE: AEO) today reported EPS of $0.34 for the quarter ended August 4, 2018, compared to $0.12 for the quarter ended July 29, 2017, up 183%.  EPS of $0.34 increased 79% compared to adjusted EPS of $0.19 last year.

Jay Schottenstein, AEO’s Chief Executive Officer commented, “The second quarter results exceeded our expectations, delivering record sales and 79% growth in adjusted earnings.  This marked our 14^th consecutive quarter of comparable sales growth, with the American Eagle and Aerie brands posting positive results across both stores and e-commerce.  Driven by exceptional product, teamwork and execution, it’s gratifying to see strength throughout our business, as we capitalize on the broad appeal of our brands and leading merchandise assortments.”

He continued, “We are pleased with the performance of the business through the back-to-school season with strength across brands and channels continuing.  As we look forward, we remain focused on fueling our brands, delivering the best customer experiences and achieving strong financial returns.”

Adjusted amounts are based on Non-GAAP results, as presented in the accompanying GAAP to Non-GAAP reconciliation.

Second Quarter 2018 Results

• Total net revenue increased $120 million, or 14% to $965 million compared to $845 million last year. Approximately $40 million of the revenue increase was due to the shifted retail calendar.
• Consolidated comparable sales increased 9% over the comparable period ending August 5, 2017, following a 2% increase last year.
• By brand, American Eagle’s comparable sales increased 7% and Aerie’s comparable sales increased 27%, compared to flat and 26% comparable sales last year, respectively.
• Gross profit increased to $353 million from $293 million. Gross profit increased 20% to $353 million from adjusted gross profit of $294 million last year.  The gross margin rate increased 170 basis points to 36.6% of revenue compared to adjusted 34.9% last year, primarily reflecting rent leverage.
• Selling, general and administrative expense of $234 million deleveraged 20 basis points to 24.3% as a rate to revenue. Investments in customer-facing store payroll, higher wages, increased incentive expense and advertising contributed to the rise from $204 million last year.
• Depreciation and amortization expense increased 6% to $43 million from $40 million last year, due to continued investments in our business. As a rate to revenue, depreciation leveraged 40 basis points to 4.4%.
• Operating income of $76 million compared to $39 million last year, an increase of $37 million, or 95%. Operating income increased 52% to $76 million from adjusted operating income of $50 million last year, leveraging 190 basis points to 7.9% as a rate to revenue.
• The effective tax rate decreased to 21.9% compared to 34.7% last year, primarily due to the impact of the U.S. Tax Cuts and Jobs Act.
• EPS of $0.34 compared to EPS of $0.12 last year. EPS increased 79% compared to adjusted EPS of $0.19 last year.

Inventory

Total ending inventories at cost increased 8% to $466 million, in line with the company’s expectations.  Looking forward, we expect third quarter ending inventory to be up in the high-single digits.

Capital Expenditures

In the second quarter, capital expenditures totaled $54 million, with more than half related to store remodeling projects and new openings, and the balance to support the digital business, omni-channel tools and general corporate maintenance.  We continue to expect capital expenditures to be in the range of $180 million to $190 million this year.

Shareholder Returns, Cash and Investments

During the second quarter, the company returned $24 million to shareholders through cash dividends.  As a result of strong free cash flow, we ended the quarter with total cash and investments of $363 million compared to $193 million last year.

Store Information

During the quarter, the company opened 4 American Eagle stores and had no closures, ending with 939 American Eagle stores, including 131 Aerie side-by-side locations.  The company opened 1 Aerie stand-alone store and closed 1, ending with 109 Aerie stand-alone stores.  Additionally, the company opened 1 Tailgate store.  Internationally, the company ended the quarter with 223 licensed stores.  For additional store information, see the accompanying table.

Third Quarter Outlook

Based on an anticipated comparable sales increase in the high-single digits and total revenue growth in the mid-single digits, reflecting the approximate $40 million revenue shift into the second quarter due to the shifted retail calendar, management expects third quarter 2018 EPS to be approximately $0.45 to $0.47.  This guidance excludes potential asset impairment and restructuring charges.  Last year’s third quarter reported EPS of $0.36 included approximately $0.01 per share of restructuring and related charges.  Excluding these items, last year’s third quarter adjusted EPS was $0.37.  See the accompanying table for the GAAP to Non-GAAP reconciliation.

Conference Call and Supplemental Financial Information

Today, management will host a conference call and real time webcast at 9:00 a.m. Eastern Time. To listen to the call, dial 1-877-407-0789 or internationally dial 1-201-689-8562 or go to http://investors.ae.com to access the webcast and audio replay. Additionally, a financial results presentation is posted on the company’s website.

Non-GAAP Measures

This press release includes information on non-GAAP financial measures (“non-GAAP” or “adjusted”), including earnings per share information and the consolidated results of operations excluding non-GAAP items.  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.  Management believes that this non-GAAP information is useful for an alternate presentation of the company’s performance, when reviewed in conjunction with the company’s GAAP financial statements.  These amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the company’s business and operations.

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About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle Outfitters® and Aerie® brands.  The company operates more than 1,000 stores in the United States, Canada, Mexico, China and Hong Kong, and ships to 81 countries worldwide through its websites.  American Eagle Outfitters and Aerie merchandise also is available at more than 200 international locations operated by licensees in 25 countries.  For more information, please visit www.ae.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 our expectations or beliefs concerning future events, including third quarter 2018 results. 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 “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “potential,” and similar expressions may identify forward-looking statements. 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 the company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2018 and in any subsequently-filed Quarterly Reports on Form 10-Q filed 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 for third quarter 2018 and beyond 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; challenges with information technology systems, including safeguarding against security breaches; and changes in global economic 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.

AERIE CONTINUES TO CHALLENGE THE INTIMATE APPAREL INDUSTRY TO CHANGE HOW WOMEN SHOP FOR BRAS

New Real Bra Collections and a “Feel Real Good” Shopping Experience Empowers Customers And Pushes Body Positivity Forward

NEW YORK — August 2, 2018 – AEO Inc. (NYSE: AEO) announces that its Aerie brand, a leader within the body positivity and inclusivity movement, is introducing a revolutionary new 360-degree bra shopping experience that creates a positive and supportive shopping environment to help women feel good about their real selves. The series of initiatives launches as part of the Aerie Bras Make You Feel Real Good campaign, which features the brand’s most diverse cast of 57 real and inspiring women. The ongoing experience will include a completely redesigned bra collection, fitting room updates to include an innovative bra measuring process, and an associate body confidence training program in partnership with The National Eating Disorders Association (NEDA).

“We are excited to launch this campaign that features our redesigned bra collections on real women that represent the unique beauty of our customer,” comments Jennifer Foyle, Aerie Global Brand President. “From product innovations, to a new body confidence associate training program, we are reinventing the way we design and sell products that empower women.”

The new #AerieREAL™ experience includes:

• Don’t Change You. Change Your Bra!: In partnership with The National Eating Disorders Association (NEDA), Aerie has implemented a body confidence training program for its entire store team. The program is designed to create a judgement-free and inspirational shopping experience. Because feeling good in your bra starts from within.
• Your New BFF: To improve the bra fitting process, Aerie has reimagined the traditional measuring tape to introduce its patent pending Best Fit Finder (BFF). The two-step process provides associates and customers with a simple tool that is less invasive and helps find her best fit. It’s not about measurements, it’s about how you feel in the bra.
• Support In The Fitting Room: With the belief that trying on bras should make a woman feel her best, the brand is giving its customer the opportunity to empower other women with sticky note affirmations on dressing room mirrors. Left from one woman to the next, messages of support and inspiration ignite feelings of self-love.
• Aerie Bras Make You Feel Real Good: Aerie has created new bra collections to simplify the way the customer shops and to make it easier to find the bra that feels best. The Real Happy™, Real Sunnie™, Real Me® and Real Power™ bra collections feature enhanced details in the form of 360-degree stretch, softer fabric for a second-skin feel, j-hooks for easy adjustments and removable padding for her choice of push level.

Hear more powerful stories and inspirational messages from the #AerieREAL™ community by following the brand on social media @aerie. Be sure to also check out the new back-to-school collection available at Aerie stores nationwide and www.aerie.com.

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About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle Outfitters® and Aerie® brands. The company operates more than 1,000 stores in the United States, Canada, Mexico, China and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 200 international locations operated by licensees in 25 countries.  For more information, please visit www.ae.com.

About Aerie

Aerie is a lifestyle brand offering intimates, apparel, activewear and swim collections. With the #AerieREAL™ movement, Aerie celebrates its community by advocating for body positivity and the empowerment of all women. Aerie believes in inspiring customers to love their real selves, inside and out. Retouching-free since 2014. Visit http://www.aerie.com to learn more. Let the Real You Shine®.

CONTACT:

Brittany Banion

SHADOW

Phone: 212.972.0277

Brittany@weareshadow.com

Brand Furthers #AExME Platform By Celebrating Real Kids, Self-Expression and Jeans

NEW YORK — (July 26, 2018) – American Eagle (NYSE: AEO) announces the launch of its multifaceted Ne(X)t Level Jeans Campaign as an extension of its #AExME brand platform, which celebrates freedom, individuality and difference. The fall campaign intersects the worlds of fashion, music, and youth culture by highlighting how real customers express themselves in AE’s Ne(X)t Level jeans.

“Our fall campaign and back-to-school collection—featuring Ne(X)t Level jeans at the core—is setting standards for innovation, style, fit and quality,” said Chad Kessler, American Eagle Global Brand President. “This fall we are delivering a curated assortment of great fashion to inspire our customers to take what we make, and make it their own.”

The Ne(X)t Level Jeans Campaign includes:

• #AExME: This fall, the platform will introduce 12 real customers, including an AE store associate, who were photographed in environments that reflected music and creativity. Shot and filmed in and around Nashville and Detroit, each cast member shares their individual stories and style in the back-to-school collection.
• Make Moves Video: The freedom to move in your jeans without compromising style, or self, is the theme of AE’s inspiring Make Moves video. Set to Kendrick Lamar’s DNA and shot across the U.S. by French cinematographer, Mathieu Plainfosse, the dynamic video captures real customers expressing how they move through daily life in AE Ne(X)t Level jeans. The diverse cast reflects varied backgrounds, genders, sizes and passions, and highlights the spirit that drives youth culture.
• #AExME Artists: AE has teamed up with Universal Music Group and Brands (UMGB), the brand’s strategy division of Universal Music Group (UMG), to identify a select group of some of today’s hottest emerging acts. #AExME Artists include Bea Miller, Bibi Bourelly, Jade Bird, Lewis Capaldi, and Trinidad Cardona. A digital content series will document each artist’s journey giving viewers insight into their musical aspirations. Each artist will be integrated into the campaign wearing AE jeans.
• #AEJeans Made For You: Embracing the uniqueness of all bodies and recognizing that no two customers wear their jeans the same way, the brand will introduce its #AEJeans Made For You denim guide for men and women. The digital guide will celebrate diverse body shapes and highlight how its range of sizes are made to move and make the customer feel their best.
• Rock the Vote T-Shirt Design Contest: Building upon AE’s continued partnership with Rock the Vote, a nationwide t-shirt design contest was launched to ask customers to express how they drive change through art. Four customer designs will be produced and sold online and at select stores starting September 21. One hundred percent of sales will benefit Rock the Vote.

Follow along @americaneagle and #AExME on social, and http://www.ae.com/aexme to shop the back-to-school collection.

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About American Eagle

Since 1977, American Eagle has offered an assortment of specialty apparel and accessories for men and women that enables self-expression and empowers our customers to celebrate their individuality. The brand has broadened its leadership in jeans by producing innovative fabric with options for all styles and fits for all at a value. We aren’t just passionate about making great clothing, we’re passionate about making real connections with the people who wear them. Visit http://www.ae.com to find your perfect pair of #AEJeans.

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle Outfitters® and Aerie® brands. The company operates more than 1,000 stores in the United States, Canada, Mexico, China and Hong Kong, and ships to 81 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 200 international locations operated by licensees in 25 countries.  For more information, please visit www.ae.com.

CONTACT:

Matthew Owens
SHADOW

Phone: 212.972.0277
Matthew@weareshadow.com