PITTSBURGH–(BUSINESS WIRE)– American Eagle Outfitters, Inc. (NYSE:AEO) today reported EPS of $0.36 for the third quarter ended October 28, 2017. Excluding restructuring and related charges of $0.01 per diluted share, the company’s Adjusted EPS* was $0.37 for the third quarter. Included in our GAAP and Adjusted EPS is a discrete charge to reserve against a receivable of $14 million, or $0.05 per diluted share, which is recorded in Other Expense.

Jay Schottenstein, Chief Executive Officer commented, “The third quarter produced record sales, sequential margin improvement and marked eleven straight quarters of comp sales growth. Digital sales continued to grow at a rapid pace, while we also saw store sales strengthen. These results validate our investments in product leadership, innovation, quality and brand equity. I’m very pleased to see strong momentum continue into the fourth quarter, positioning us well for the next few critical weeks of the holiday season.”

Third Quarter 2017 Results

• Total net revenue increased 2% to $960 million from $941 million last year.
• Consolidated comparable sales were up 3%, following a 2% increase last year.
• Gross profit of $375 million compared to $378 million last year with a gross margin rate of 39.0% to revenue compared to 40.2% last year, a 120 basis point decline. The reduction in margin rate was due to higher promotions and increased shipping costs associated with a strong digital business.
• Selling, general and administrative expense declined $3 million, or 1% to $217 million compared to $220 million last year. Positive sales combined with lower expenses drove 80 basis points of leverage to a rate of 22.6% to revenue. Lower incentives and expense discipline were partially offset by higher wages.
• Operating income of $111 million includes $4 million of restructuring charges related to severance and a lease buy-out. Adjusted operating income* of $115 million compared to $118 million last year with a rate of 11.9% to revenue compared to 12.6% last year.
• Other expense of $13 million includes a discrete charge of $14 million to reserve against a receivable.
• EPS of $0.36 and Adjusted EPS* of $0.37 both include a discrete charge of $0.05 per diluted share compared to EPS of $0.41 last year.

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

Shareholder Returns, Cash

The company ended the quarter with total cash of $258 million compared to $292 million last year. Over the past 12 months, we returned $88 million in share buybacks, $89 million in dividends and invested $189 million in capital expenditures, resulting in a lower cash balance.

Inventory

Total ending inventories at cost increased 8% to $534 million, reflecting investments in bottoms, women’s tops and Aerie apparel to support strong sales trends.

Capital Expenditures

In the third quarter, capital expenditures totaled $48 million. We continue to expect fiscal year 2017 capital expenditures in the range of $160 million to $170 million, with roughly half of the spend related to store remodeling projects and new openings, and the balance to support the e-commerce business, omni-channel tools and general corporate projects.

Store Information

This quarter we opened 4 new AE stores, with 1 in Mexico, 1 in Canada and 2 in the U.S. Additionally, we opened 1 new Aerie location in Canada. We also opened 11 international licensed stores and closed 1. The company is on track to close a total of 25 to 30 stores this year. For additional store information, see the accompanying table.

Fourth Quarter Outlook

Based on an anticipated comparable store sales increase in the mid-single digits, management expects fourth quarter 2017 EPS to be approximately $0.42 to $0.44. This guidance excludes potential asset impairment and restructuring charges. Last year’s fourth quarter reported EPS of $0.30 included approximately $0.09 per share of asset impairment, restructuring and related charges. Excluding these items, last year’s fourth quarter adjusted EPS was $0.39. 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. Also, 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. The company believes that this non-GAAP information is useful as an additional means for investors to evaluate the company’s operating 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.

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 24 countries. For more information, please visit www.ae.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, which represent our expectations or beliefs concerning future events, including fourth quarter 2017 results. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on factors beyond the company’s control. Such factors include, but are not limited to the risk that the company’s operating, financial and capital plans may not be achieved and the risks described in the Risk Factor Section of the company’s Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. Accordingly, the company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if future changes make it clear that projected results expressed or implied will not be realized.

NEW YORK–(BUSINESS WIRE)– This fall, American Eagle Outfitters (NYSE: AEO) celebrates its 40^th anniversary and looks to the future with AE Studio, a remodel of AE’s store in a premiere location in NYC’s vibrant Union Square neighborhood. Opening November 10, AE Jeans will be a focal point of the studio’s first floor Jeans Gallery, where customers can engage in a unique and experiential shopping environment featuring AE’s leading collections. This includes an exclusive collaboration with Atelier & Repairs, an assortment of customized denim and apparel repurposed from AE’s previous collections. The creative atmosphere is meant to inspire community and collaboration.

AE Studio’s experience includes:

• Jeans Gallery featuring an in-store Maker’s Shop – Customers can shop AE’s extensive jeans collection and create one-of-a-kind pieces. The Maker’s Shop will feature options for customers to personalize their AE Jeans to fit their distinctive style.
• Onsite Social Media Team – AE’s social media team will have an in-store work space to directly engage with customers. Working in the heart of our studio, they’ll create content in real time and keep their finger on the pulse of the brand.
• Complimentary Laundry Wall – Students are offered a free place to do laundry. While they wait, they can hang out with friends or study in the studio bar and seating area and enjoy the view of Union Square.
• Digital Concierge iPads in dressing rooms – Customers can personalize their shopping experience and engage the brand with the tap of their finger.
• Collaboration Space – The space will feature capsule collections co-created with new brands, emerging designers, and artists.

“As we celebrate the success of the last four decades, we look ahead to create new brand experiences to inspire today’s customer, and broaden our leadership in jeans,” said Chad Kessler, American Eagle Outfitters Global Brand President. “AE Studio is a perfect example of our evolution where we invite customers to enjoy a unique brand experience, feel at home, and curate their distinct individual style.”

Visit www.ae.com to follow along as the brand expands its AE Studio locations and to shop its holiday collections.

About Atelier & Repairs x American Eagle.

The collection features one-of-a-kind garments for men and women repurposed and customized solely from American Eagle’s previous collections. Co-founded by Maurizio Donadi, Atelier & Repairs aims to fix, improve, recreate and up-cycle product that already exists. The collection is priced $48 to $128 and currently sold at 22 AE stores nationwide including Chicago, San Francisco, Dallas, Boston, Miami and more.

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 82 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 190 international locations operated by licensees. For more information, please visit www.ae.com.

CHICAGO–(BUSINESS WIRE)– Bright Pink, a national non-profit organization dedicated to the prevention and early detection of breast and ovarian cancer in young women, is proud to announce an initiative with Aerie in support of Breast Cancer Awareness Month.

“We’re incredibly grateful to have a long-standing partner like Aerie that shares our vision to lift up millions of young women to live their best lives,” said Bright Pink CEO, Katie Thiede. “Through the Take Care of Your Girls campaign, we will raise critical funds to fuel our life saving educational programs.”

Highlights include:

• Over the next month, Aerie will offer a Limited-Edition Bright Pink Tee and Pin with 100% of sales going directly to the cause.
• On September 28^th Aerie will celebrate Take Care of Your Girls Day by donating 5% of sales at Aerie stores and aerie.com to Bright Pink. Additionally, educational workshops will be held in select stores and throughout the fall on college campuses #BrightenUpCollegeTour.
• Aerie will also offer shoppers the opportunity to make donations in stores and to sign up for Bright Pink’s Breast Health Reminders by texting AERIE to 59227.

“The passion and dedication we share with the team at Bright Pink have been a highlight of our work to educate and raise awareness to young women everywhere,” said Aerie Global Brand President, Jen Foyle. “Aerie’s support for breast and ovarian cancer prevention underscores our deep commitment to our customers and associates to be proactive about prevention, early detection and an overall healthy lifestyle.”

Now in its 8^th year, the program will be promoted by Aerie and Bright Pink through social channels, customer e-mails, Times Square Billboards, at Aerie.com and through in-store marketing. In 2016, the program raised more than $391,000 for the charity’s educational initiatives.

For more information, visit www.aerie.com/aeriesupports.

About Bright Pink®

Bright Pink is a national non-profit focused on the prevention and early detection of breast and ovarian cancer in young women. The organization’s mission is to save women’s lives from breast and ovarian cancer by empowering them to live proactively at a young age. Bright Pink’s innovative programs educate and equip young women to assess their risk for breast and ovarian cancer, reduce their risk, and detect these diseases at early, non life-threatening stages. Founded in 2007, Bright Pink strives to reach the 52 million women in the US between the ages of 18-45 with this life-saving education. Put Awareness In Action™ at BrightPink.org.

About Aerie

Aerie is bras, undies, swim, activewear and more for every girl. Aerie is committed to making all girls feel good about their real selves, inside and out. No retouching, ever. Always #AerieREAL. Let the real you shine. For more information, please visit www.aerie.com.

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 82 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 190 international locations operated by licensees in 24 countries. For more information, please visit www.ae.com.

PITTSBURGH–(BUSINESS WIRE)– American Eagle Outfitters, Inc. (NYSE:AEO) today announced the launch of AEO Connected, a new, highly-digitized loyalty program serving all American Eagle and Aerie customers. Over 16 million current rewards members were immediately converted to AEO Connected, where they enjoy greater convenience, more rewards and an enhanced customer experience.

“Staying connected to our customers is at the core of everything we do, so we are excited to offer a unique program to attract new members and build on the strength of our brands, while highlighting our leading product categories, AE jeans and Aerie bras. AEO Connected rewards brand advocates and encourages greater customer engagement, beyond just transactional,” said Kyle Andrew, American Eagle Outfitters Chief Marketing Officer. “The new platform provides flexibility to evolve with the changing needs of our customers and supports upgraded features such as greater personalization, enabling us to provide a truly special customer experience.”

AEO Connected Highlights include:

• Upgraded rewards for our best customers and brand advocates
• Full integration with AE and Aerie’s branded credit cards
• Special perks for purchasing key items, jeans and bras
• Exclusive member access to concerts, festivals and special events

Joining AEO Connected is free and can be done in stores, on the AEO mobile app or online. Customers are instantly awarded 500 points upon signing up, and begin earning rewards immediately. AEO Connected also offers enhanced perks for AE and aerie branded credit card customers, including free standard shipping and faster rewards.

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 82 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 190 international locations operated by licensees in 24 countries. For more information, please visit www.ae.com.

PITTSBURGH–(BUSINESS WIRE)– American Eagle Outfitters, Inc. (NYSE: AEO) today announced plans to enter India through licensed stores. The company has signed a multi-year license agreement with the Aditya Birla Group, a leading Indian conglomerate with an extensive retail portfolio, as well as strong digital and omni-channel capabilities. The first stores are expected to open in Mumbai and Delhi in Spring 2018.

“India’s rapidly developing and vibrant economy, anchored by the world’s largest youth population, provides an exciting growth opportunity for our brands, expanding our global reach,” commented Andrew McLean, EVP-Global Commercial Operations. “Aditya Birla brings deep market experience and extensive retail capabilities, giving us a strong platform to deliver our leading AE jeans collections and casual American style to India’s growing market.”

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 82 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 190 international locations operated by licensees in 24 countries. For more information, please visit www.ae.com.

About Aditya Birla Group

A US $41 billion corporation, the Aditya Birla Group, is an Indian multinational conglomerate, headquartered in Mumbai, India. The company’s retail operations extends through 900 retail stores and 6,000 additional points of sale. Aditya Birla employs strong technology, including in-house e-commerce and omni-channel capabilities.

NEW YORK (PRNewswire) — American Eagle Outfitters (AEO) is expanding its passion for connecting its stylish fans with the music they love by teaming up with Live Nation and Founders Entertainment to launch a multi-faceted marketing initiative for the 2017 Meadows Music and Arts Festival. From featuring exclusive festival apparel and offering an interactive Studio & Lounge for festival goers on-site to launching a national sweepstakes, this integration with The Meadows allows AEO to expand its footprint in the live music realm.

The second annual edition of The Meadows, named “Best NYC Festival of 2016” by Stereogum, will take place from Friday, September 15th through Sunday, September 17th at the Citi Field complex in Queens, NY with performances from world renowned artists like JAY-Z, Red Hot Chili Peppers, Gorillaz, Joey Bada$$, Future, Nas, Bassnectar, Weezer, Run The Jewels, M.I.A., Erykah Badu and more.

Key elements of the sponsorship include:

• Festival Merchandise: AEO is The Meadows’ official apparel partner. The exclusive capsule collection of merchandise, co-designed by Founders and AEO, will be available on-site at the festival and will include a variety of AEO apparel including: t-shirts, hats, denim jackets, and more. Check out the new merchandise here.
• AEO Exclusive Merchandise, In-Store and Online: Merchandise is a hot commodity at The Meadows, and fans flock to snag the customized apparel before it sells out. Now, fans have the special opportunity to outfit themselves in festival gear before they even arrive on-site. Beginning on August 24, online and in select AEO retail stores in New York City and Los Angeles, exclusive co-branded “AMERICAN EAGLE OUTFITTERS X THE MEADOWS MUSIC AND ARTS FESTIVAL” merchandise will be available. Visit the AEO Meadows Collection for men and women to shop online.
• American Eagle Outfitters Stage: The Meadows welcomes the American Eagle Outfitters Stage, featuring performances by Joey Bada$$, Milky Chance, A-Trak and more. Check out the full line-up and set times here.
• AEO Studio & Lounge: Festival goers will have the opportunity to take the ultimate selfie and chill out in AEO’s denim-inspired pop-up video studio & lounge. Exclusive denim cuffs will be handed out as well. After stepping into the 360-degree video booth, images will be shared on large screens in the lounge giving visitors a few moments in the spotlight as well as creating a larger-than-life backdrop for even more social opportunities. Fans can then share their images via #AExMEADOWS.
• National Sweepstakes: One lucky fan will have an opportunity to win the grand prize that includes: 2 VIP 3-day festival tickets, round trip airfare, hotel accommodations, meet and greet with a select festival artist, $500 in AEO gift cards and more. All eligible sweepstakes entrants will receive a 20% AEO coupon to use in store or at ae.com through October 1, 2017.* For full sweepstakes rules, and more details on how to enter, please visit ae.com/meadows.

About American Eagle Outfitters
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 82 countries worldwide through its websites.  American Eagle Outfitters and Aerie merchandise also is available at more than 190 international locations operated by licensees.  For more information, please visit www.ae.com.

About Live Nation Entertainment
Live Nation Entertainment is the world’s leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media & Sponsorship. For additional information, visit www.livenationentertainment.com.

About Founders Entertainment
Founders Entertainment is a New York City-based event production and promotion company specializing in creating, producing, and promoting concerts and festivals. As the promoters of the immensely successful Governors Ball Music Festival and The Meadows Music and Arts Festival, the young company has made a name for itself as a major player on the North American festival landscape. www.foundersent.com

PITTSBURGH–(BUSINESS WIRE)– American Eagle Outfitters, Inc. (NYSE:AEO) today reported EPS of $0.12 for the second quarter ended July 29, 2017. Excluding restructuring and related charges of $0.07 per diluted share, the company’s adjusted EPS was $0.19 for the second quarter.

Jay Schottenstein, Chief Executive Officer commented, “In the second quarter, we achieved sales and earnings above our expectations in a challenging retail environment. Sales trends improved and I’m proud of the continued growth in jeans, bottoms, women’s apparel and Aerie, with encouraging signs in men’s tops beginning to emerge. Our brands are strong and we have significant opportunity for further growth. I’m optimistic as we enter the second half of the year, and we remain focused on delivering product innovation, strengthening customer engagement and improving profit flow-through.”

Second Quarter 2017 Results

• Total net revenue increased 3% to $845 million from $823 million last year.
• Consolidated comparable sales were up 2%, following a 3% increase last year.
• Gross profit* of $294 million compared to $307 million last year with a gross margin rate of 34.9% to revenue compared to 37.3% last year, a 240 basis point decline. The margin declined primarily due to increased promotional activity. Additionally, shipping costs and rent deleveraged.
• Selling, general and administrative expense rose 2% to $204 million compared to $200 million last year, and leveraged 20 basis points to a rate of 24.1% to revenue. Higher advertising expense was offset by lower compensation expense.
• Operating income of $39 million, which includes $11 million of restructuring charges, compared to $69 million last year. Adjusted operating income* of $50 million compared to $69 million last year with a rate of 6.0% to revenue compared to 8.3% last year.
• Other expense of $6.7 million includes $9.3 million of pre-tax charges related to the planned exit of a joint business venture. This was partially offset by $2.6 million of other income, compared to other expense of $3.1 million last year.
• The effective tax rate decreased to 34.7% compared to 36.5% last year.
• EPS of $0.12 compared to EPS of $0.23 last year. Adjusted EPS* of $0.19 compared to EPS of $0.23 last year.

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

Restructuring and Related Charges

In the second quarter, the company had charges totaling $21 million, approximately $0.07 per share. This consisted of restructuring charges corresponding to the previously announced initiative to explore the closure or conversion of company owned and operated stores in the United Kingdom, Hong Kong and China to licensed partnerships. Additionally, the company incurred charges related to the planned exit of a joint business venture.

Shareholder Returns, Cash

The company ended the quarter with total cash of $193 million compared to $248 million last year. Over the past 12 months, we returned $88 million in share buybacks, $90 million in dividends and invested $187 million in capital expenditures, resulting in a lower cash balance.

Inventory

Total ending inventories at cost increased 3% to $433 million. Ending units were flat compared to last year, while the average unit cost was up 2% to last year.

Capital Expenditures

In the second quarter, capital expenditures totaled $46 million. We continue to expect fiscal year 2017 capital expenditures in the range of $160 million to $170 million, with roughly half of the spend related to store remodeling projects and new openings, and the balance to support the e-commerce business, omni-channel tools and general corporate maintenance.

Store Information

Consistent with our strategy, this quarter we opened 9 new Aerie locations, of which 7 were in new markets. Additionally, we opened 6 new AE stores, with 2 in Mexico and 4 in the U.S. to better position our brand in select markets. The company also opened 9 international licensed stores and closed 3. For the remainder of the year, the company plans to open another 5 AE stores and 5 Aerie stores in the U.S., Canada and Mexico, as well as 32 international licensed stores to support the company’s global growth strategy. The company is on track to close a total of 25 to 40 stores this year. For additional store information, see the accompanying table.

Third Quarter Outlook

Based on anticipated comparable store sales in the range of flat to up low single digit, management expects third quarter 2017 EPS to be approximately $0.36 to $0.38. This guidance excludes potential asset impairment and restructuring charges, and compares to EPS of $0.41 last year.

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. Also, 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. The company believes that this non-GAAP information is useful as an additional means for investors to evaluate the company’s operating 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.

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 82 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 190 international locations operated by licensees. For more information, please visit www.ae.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, which represent our expectations or beliefs concerning future events, including third quarter 2017 results. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on factors beyond the company’s control. Such factors include, but are not limited to the risk that the company’s operating, financial and capital plans may not be achieved and the risks described in the Risk Factor Section of the company’s Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. Accordingly, the company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if future changes make it clear that projected results expressed or implied will not be realized.

NEW YORK (PRNewswire) — Today, American Eagle Outfitters debuts its new campaign for Fall 2017 with an inspiring cast and innovative denim. The New American Jean, a collection of denim including new fits, washes and fabrications, is made to move without compromising design. As a recognized leading denim destination, the American Eagle Outfitters’ back-to-school collection marks its largest denim offering yet, with a range of 15 fits for women and 11 for men that hits stores and online July 8^th.

Handpicked for their ability to break stereotypes and credibility in their multi-hyphenated careers, the Fall 2017 campaign features a new cast of millennials from varied industries and backgrounds including model-actress-vlogger, Amanda Steele, champion bull rider-model, Bonner Bolton, professional basketball player-artist, Brandon Ingram, model-inclusivity activist, Halima Aden, model-body positive activist, Iskra Lawrence and rapper-actor, Joey Bada$$. Shown in unretouched, motivational imagery and video, the campaign captures the cast alongside a backdrop representing their particular style, passion and personality.

As an anthem for this generation, the brand selected A Tribe Called Quest’s “Can I Kick It?” as the soundtrack for the campaign. Between the classic bassline and lyrics, each cast member pays tribute to the iconic record by showing how they kick it in The New American Jean.

In addition to the campaign soundtrack, each cast member adds their own personal style to the Fall 2017 back-to-school collection and the brand’s advanced denim — The New American Jean. The updated jean collection, which sets new standards in style, fit, comfort and wash, is made for this generation and how they move and create. New fits and styles for fall include five rises in the best-selling Jegging, new destroyed washes and the brand’s interpretation of the Tom Girl and Mom Jean for women. For men, the brand debuts extended black denim, slimmer fits and an expanded assortment of its popular flex denim.

“We are continuously evolving our technology to represent a new standard in denim,” comments Chad Kessler, American Eagle Outfitters Global Brand President. “With fit, quality, and value top of mind, we hope our jeans can inspire this generation to make their mark through creativity and self-expression.”

Visit www.ae.com to view the entire American Eagle Outfitters Fall 2017 Collection and learn more about the Fall campaign.

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, Hong Kong and the United Kingdom and ships to 81 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 160 international locations operated by licensees. For more information, please visit www.ae.com.

PITTSBURGH–(BUSINESS WIRE)– American Eagle Outfitters, Inc. (NYSE:AEO) today reported EPS of $0.30 for the fourth quarter and $1.16 for the year ended January 28, 2017. Excluding asset impairment, restructuring and related charges of $0.09 per diluted share, the company’s adjusted EPS were $0.39 and $1.25 for the fourth quarter and full year, respectively.

Last year, the company reported EPS of $0.42 for the fourth quarter and EPS from continuing operations of $1.09 for the year ended January 30, 2016, which included a gain on the sale of a distribution center and a lower tax rate related to income tax settlements, federal tax credits and tax strategies. Excluding these items, last year’s adjusted fourth quarter EPS was $0.35 and annual EPS from continuing operations was $1.01. The EPS figures refer to diluted earnings per share.

Jay Schottenstein, Chief Executive Officer commented, “I’m extremely proud that our strategic priorities centered on product innovation and customer focus have delivered results and greater consistency throughout 2016, despite a highly competitive and challenging retail landscape. The American Eagle brand continued its strong leadership in jeans and bottoms and has experienced accelerated growth in women’s apparel. Aerie posted double-digit sales growth throughout 2016, fueled by superior merchandise, a strengthening customer base and growing brand awareness. We’ve made great progress, yet we have much more opportunity across the marketplace. I’m confident that the strength of our brands and focused priorities will enable us to deliver long-term returns to our shareholders.”

Fourth Quarter 2016 Results

The following discussion is based on Non-GAAP results, as presented in the accompanying GAAP to Non-GAAP reconciliation.

• Total net revenue decreased 1% to $1.10 billion from $1.11 billion last year.
• Consolidated comparable sales were up slightly, following a 4% increase last year.
• Gross profit increased slightly to $389 million from $388 million. The gross margin rate increased 30 basis points to 35.4% of revenue compared to 35.1% last year. A favorable merchandise margin reflecting improved IMU was partially offset by higher delivery costs related to growth in the direct business.
• Selling, general and administrative expense of $242 million was flat compared to last year, with higher advertising expense offset by lower incentive compensation. As a rate to revenue, SG&A deleveraged 20 basis points to 22.1%.
• Operating income of $107 million compared to $106 million last year, improving 20 basis points to 9.8% as a rate to revenue.
• Adjusted EPS of $0.39 increased 11% compared to adjusted EPS of $0.35 last year.

Fiscal Year 2016 Results

The following discussion is based on Non-GAAP results from continuing operations, as presented in the accompanying GAAP to Non-GAAP reconciliation.

• Total net revenue increased 2% to $3.61 billion from $3.52 billion last year.
• Consolidated comparable sales increased 3%, following a 7% increase last year.
• Gross profit increased 5% to $1.37 billion and leveraged 90 basis points to 37.9% as a rate to revenue. The improvement in the gross margin reflected an increase in the merchandise margin based on improved IMU.
• Selling, general and administrative expense of $858 million was up 2% compared to $844 million last year, due to higher advertising expense offset by lower incentive compensation. As a rate to revenue, SG&A leveraged 20 basis points to 23.8%.
• Operating income increased 14% to $353 million. The operating margin increased 100 basis points to 9.8%.
• Adjusted EPS from continuing operations of $1.25 increased 24% compared to adjusted EPS of $1.01 last year.

Asset Impairment and Restructuring Charges

In the fourth quarter, the company had asset impairment and restructuring charges totaling $21 million related to its owned and operated stores in the UK, China and Hong Kong. The company is exploring an initiative to convert those markets to licensed partnerships. Related to these initiatives, the company expects to incur additional restructuring charges in fiscal 2017. The timing and magnitude of charges is dependent on a number of factors, including negotiating third-party agreements, adherence to notification requirements and local laws.

Inventory

Total ending inventories at cost increased 17% to $358 million. The average unit cost was up 13% and units increased 4% compared to last year. In-transit inventory was significantly higher due to acceleration of receipts. On-hand inventories were up 6% to last year. The inventory composition reflected an investment in AE bottoms to support better in-stocks and an increase in aerie inventory to support strong demand and new store growth.

Capital Expenditures

In 2016, capital expenditures totaled $161 million. For fiscal 2017, the company expects capital expenditures to be in the range of $160 to $170 million, with roughly half related to store remodeling projects and new openings, and the balance to support the digital business, omni-channel tools and general corporate maintenance.

Cash

The company ended the year with total cash of $379 million. As a result of strong free cash flow, cash increased $119 million compared to the end of 2015. During 2016, we returned $91 million in cash dividends to our shareholders.

Store Information

In the quarter, the company opened 2 AE stores and closed 11 AE stores. There were 6 Aerie stand alone stores opened and 1 Aerie stand alone store closed. Additionally, the company opened 1 Tailgate store and 1 Todd Snyder store. Internationally, the company opened 15 licensed stores and closed 2 licensed stores during the quarter. The company ended the year with 943 AE stores, which included 88 Aerie side-by-side locations. Additionally, the company had 102 Aerie stand alone stores and 176 licensed stores at year end. For additional fourth quarter 2016 actual and fiscal 2017 projected store information, see the accompanying table.

First Quarter Outlook

Based on anticipated comparable store sales in the range of flat to a low single digit decline, management expects first quarter 2017 EPS to be approximately $0.15 to $0.17. This guidance excludes potential asset impairment and restructuring charges, and compares to EPS of $0.22 last year.

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. Also, 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. The company believes that this non-GAAP information is useful as an additional means for investors to evaluate the company’s operating 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.

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, Hong Kong and the United Kingdom, and ships to 81 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at more than 170 international locations operated by licensees. For more information, please visit www.ae.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, which represent our expectations or beliefs concerning future events, including first quarter 2017 results. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on factors beyond the company’s control. Such factors include, but are not limited to the risk that the company’s operating, financial and capital plans may not be achieved and the risks described in the Risk Factor Section of the company’s Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. Accordingly, the company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if future changes make it clear that projected results expressed or implied will not be realized.

NEW YORK–(BUSINESS WIRE)– In keeping with its commitment to promoting body-positivity, Aerie, an intimate apparel brand for every girl, will launch its Strong, Beautiful, Me campaign in support of NEDAwareness Week, with 100% of sales of a limited edition t-shirt donated to the National Eating Disorders Association (NEDA). The campaign will run in stores and online from February 16 through March 15.

A stand-out leader for change in the fashion industry, Aerie – which recently celebrated the third anniversary of its #AerieREAL campaign – has made a corporate commitment to body-positivity in its advertising and marketing materials by pledging to no longer retouch models.

“Aerie’s dedication to socially-responsible campaigns is inspiring,” said Claire Mysko, CEO of NEDA. “In a world where girls and women continue to struggle with negative feelings about their appearance, Aerie is creating needed change by celebrating diversity and promoting positive body image. We thank Aerie for their continued support of NEDA and their commitment to fostering strength and confidence in their customers.”

“We are proud to continue our partnership with NEDA for the third year in a row,” said Jennifer Foyle, Aerie Global Brand President. “Our partnership with NEDA provides support and information to our customers and helps reduce the stigma associated with eating disorders. It also reinforces our #AerieREAL message and our commitment to empowering all women to love their REAL selves, inside and out.”

The partnership includes several components:

• 100% of sales from the Limited Edition Strong, Beautiful, Me t-shirt will be donated to NEDA. The tee will be sold in Aerie stores and online at www.aerie.com from February 16 through March 15, or while supplies last.
• Five percent of all sales made in Aerie stores using an Aerie or an American Eagle Outfitters credit card will be donated to NEDA, up to $25,000.
• Aerie will increase awareness about NEDA and its work through its social media channels and at www.Aerie.com/AerieSupports, where visitors can access more information about the partnership and find links to resources on NEDA’s website.
• Stories of Impact will be shared on Aerie’s blog, showcasing firsthand accounts of courageous girls who have overcome their eating disorders.
• Aerie will continue to serve as the presenting sponsor of the charity’s ongoing national walks awareness program, NEDA Walk. Save a Life, which raises funds for advocacy and educational programs and provides support for local communities.
• Aerie’s NYC SoHo pop-up store will match the total of all purchases made on Sunday, February 26 in donations to NEDA, up to $10,000, to celebrate the launch of #NEDAwareness week.

About Aerie

Aerie is bras, undies, swim and more for every girl. Designed in sizes 30AA to 36DDD Aerie is committed to making bras for girls of all sizes feel good about themselves, inside and out. No supermodels. No retouching. The real you is sexy.^® #AerieREAL. For more information, please visit www.aerie.com.

About the National Eating Disorders Association:

The National Eating Disorders Association (NEDA), headquartered in New York City, is the leading U.S. non-profit organization supporting individuals and families affected by eating disorders. NEDA serves as a catalyst for prevention, cures and access to quality care. Each year, NEDA helps millions of people across the country find information and appropriate treatment resources through its toll-free, live helpline, its many outreach programs and website. NEDA advocates for advancements in the field and envisions a world without eating disorders. For more information, visit www.MyNEDA.org

For Treatment Referrals, Visit www.MyNEDA.org
Or Contact NEDA’s Live Helpline: 800-931-2237
Monday – Thursday, 9 a.m. – 9 p.m. (EST)
Friday, 9 a.m. – 5 p.m. (EST)