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SECOND QUARTER 2026 Investor Presentation
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This presentation 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 views, expectations, beliefs, assumptions and estimates concerning future events, including, without limitation, expected results for the third quarter and full-year fiscal 2026. All statements other than statements of historical facts contained in this release and related statements by management are forward-looking statements. Words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may, "outlook, "plan," "potential," "project," "should," "target," "will," or "would" or the negative of these terms or other 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. You are cautioned to not unduly rely upon these statements. Any forward-looking statement speaks only as of the date on which such statement is made, and 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. Because these forward-looking statements involve known and unknown risks and uncertainties, the following important 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 January 31, 2026 and in any other filings that we have made or may in the future 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 and gain market share in the face of declining shopping center traffic or attract customers to our stores; our inability to react to raw material cost, labor and energy cost increases; 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 that foreign trade issues, including 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 continued uncertainty with respect to tariffs and other trade restrictions, the possibility that product costs may be affected by other foreign trade issues, such as the availability of further tariff refunds, currency exchange rate fluctuations, increasing prices for raw materials, supply chain issues, the potential for a trade war, 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, 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. In addition, we operate in a highly competitive and rapidly changing environment; therefore, new risk factors can arise, and it is not possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on our business or the extent to which any individual risk factor, or combination of risk factors, may cause results to differ materially from those contained in any forward-looking statement. The use of the “company,” “AEO,” “we,” "us," and “our” in this presentation refers to American Eagle Outfitters, Inc. Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995
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“The second quarter reflects the value of our AEO Inc. portfolio, led by the broad-based momentum of Aerie and OFFLINE, alongside encouraging progress at American Eagle. We continue to expand Aerie's reach and deepen brand awareness, leveraging authentic connections to attract new customers and fuel engagement. AE saw sequential improvement from the first quarter, including the fourth consecutive quarter of growth in men’s, and we remain focused on opportunities to drive greater consistency in the women’s business. Looking ahead to the second half, we are committed to building on the continued momentum in Aerie and OFFLINE, accelerating improvement at American Eagle, and unlocking greater consistency and profitability across the business.” Jay Schottenstein AEO’s Executive Chairman of the Board and Chief Executive Officer
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Rankings reflect U.S. Market Only; Source: Circana, LLC, Retail Tracking Service, US, Jeans, Wearer Age: 15 – 25; Women’s Leggings, Activewear, Sports Bras & Intimates, Wearer Age: 15 – 35; Dollar Share, 12 Mo. ending June 2026 Our Core Brands Fueling Success: Product Leadership
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Second Quarter 2026 Results -1%Comp +19%Comp +6% Comp $211M Operating Profit Second quarter revenue increases to $1.4 billion with total comparable sales up 6% Aerie and OFFLINE total revenue grew 25% – including 19% comparable sales growth Updates fiscal 2026 operating income guidance in the range of $540 to $550 million, inclusive of net tariff refund benefit 170M Diluted Shares
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Guidance 3Q26 Fiscal 2026 COMPARABLE SALES +Mid-to-High Single Digit +Mid-Single Digit GROSS MARGIN Flat YoY Up YoY SG&A +High-Single Digits +Low-Double Digits DEPRECIATION & AMORTIZATION $55 M Approximately $215 M OPERATING INCOME $110M to $115 M $540 to $550 M WEIGHTED AVERAGE SHARE COUNT Low 170 millions Low 170 millions
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Appendix
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Key Highlights (unaudited) Inventory Data (unaudited) (1) Inventory turn is calculated as the total cost of goods sold for the quarterly periods divided by the average of the beginning and ending inventory balances from the consolidated balance sheets. (2) Included in cost of sales this year is a net benefit of $179 million related to tariff refunds. SECOND QUARTER 2026 2025 TOTAL NET REVENUE CHANGE 8% (1%) COMPARABLE SALES GROWTH 6% (1%) GROSS MARGIN¹ 48.7% 38.9% SELLING, GENERAL & ADMINISTRATIVE EXPENSES 29.6% 26.7% OPERATING MARGIN² 15.3% 8.0% (In thousands) August 1, 2026 August 2, 2025 ENDING INVENTORY $817,910 $718,337 ENDING INVENTORY % CHANGE TO PRIOR YEAR 14% 8% QUARTERLY INVENTORY TURN¹ ² 0.87 1.15 (1) Included in gross profit this year is a net benefit of $179 million related to tariff refunds, which drove 1300 basis points of the gross margin expansion. (2) Included in operating profit this year is a net benefit of $161 million related to tariff refunds, which drove 1170 basis points of the operating margin expansion.
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Balance Sheet Summary (unaudited) ASSETS (In thousands) August 1, 2026 January 31, 2026 August 2, 2025 Cash and cash equivalents $ 147,954 $ 238,923 $ 126,780 Merchandise inventory 817,910 701,966 718,337 Accounts receivable, net 245,231 258,624 237,355 Prepaid expenses 103,331 93,231 167,295 Other current assets 22,257 21,429 21,335 Total current assets 1,336,683 1,314,173 1,271,102 Operating lease right-of-use assets 1,646,845 1,450,592 1,604,457 Property and equipment, at cost, net of accumulated depreciation 814,979 785,622 773,872 Goodwill, net 225,181 225,269 225,231 Non-current deferred income taxes 93,664 85,532 48,322 Intangible assets, net 35,974 37,468 40,674 Other assets 125,495 111,024 97,374 Total assets $ 4,278,821 $ 4,009,680 $ 4,061,032 LIABILITIES & STOCKHOLDERS EQUITY (In thousands) August 1, 2026 January 31, 2026 August 2, 2025 Accounts payable $ 253,663 $251,761 $ 247,578 Current portion of operating lease liabilities 309,108 320,005 321,334 Accrued compensation and payroll taxes 94,629 82,354 49,534 Unredeemed gift cards and gift certificates 62,837 75,278 57,376 Accrued income and other taxes 29,084 41,290 30,631 Other current liabilities and accrued expenses 90,067 96,875 76,932 Total current liabilities 839,388 867,563 783,385 Non-current operating lease liabilities 1,556,639 1,380,318 1,473,119 Long-term debt, net 55,000 — 203,000 Other non-current liabilities 65,479 70,365 56,918 Total non-current liabilities 1,677,118 1,450,683 1,733,037 Preferred stock — — — Common stock 2,496 2,496 2,496 Contributed capital 360,833 382,676 369,478 Accumulated other comprehensive loss (16,357) (15,586) (34,646) Retained earnings 2,678,371 2,552,721 2,416,980 Treasury stock (1,261,525) (1,229,154) (1,213,046) Total AEO stockholders' equity 1,763,818 1,693,153 1,541,262 Non-controlling interests (1,503) (1,719) 3,348 Total stockholders' equity 1,762,315 1,691,434 1,544,610 Total Liabilities and Stockholders' Equity $ 4,278,821 $ 4,009,680 $ 4,061,032 Current ratio 1.59 1.51 1.62
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Revenue by Segment (unaudited) 13 Weeks Ended For the 26 weeks ended (In thousands) August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 Net Revenue: American Eagle $ 805,883 $ 800,406 $ 1,484,359 $ 1,494,271 Aerie 535,822 429,084 1,016,648 788,872 Other 38,670 61,523 74,653 105,494 Intersegment Elimination - (7,338) - (15,362) Total Net Revenue $ 1,380,375 $ 1,283,675 $ 2,575,660 $ 2,373,275
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Statement of Operations Summary-GAAP Basis (unaudited) 13 Weeks Ended (In thousands, except per share amounts) August 1, 2026 % of Revenue August 2, 2025 % of Revenue Total net revenue $1,380,375 100.0% $1,283,675 100.0% Cost of sales, including certain buying, occupancy and warehousing expenses 708,311 51.3% 783,713 61.1% Gross profit 672,064 48.7% 499,962 38.9% Selling, general and administrative expenses 408,354 29.6% 342,211 26.7% Depreciation and amortization expense 52,305 3.8% 54,666 4.2% Operating income 211,405 15.3% 103,085 8.0% Interest expense, net 47,125 3.4% 1,919 0.1% Other (income) loss, net (13,771) (1.0%) 648 0.1% Income before income taxes 178,051 12.9% 100,518 7.8% Provision for income taxes 44,366 3.2% 23,705 1.8% Net income $133,685 9.7% $76,813 6.0% Net loss attributable to noncontrolling interests 399 0.0% 820 0.0% Net income attributable to AEO $134,084 9.7% $77,633 6.0% Net income per basic share attributable to AEO $0.80 $0.45 Net income per diluted share attributable to AEO $0.79 $0.45 Weighted average common shares outstanding - basic 167,059 170,756 Weighted average common shares outstanding - diluted 170,180 171,659 26 Weeks Ended (In thousands, except per share amounts) August 1, 2026 % of Revenue August 2, 2025 % of Revenue Total net revenue $2,575,660 100.0% $2,373,275 100.0% Cost of sales, including certain buying, occupancy and warehousing expenses 1,447,425 56.2% 1,550,892 65.3% Gross profit 1,128,235 43.8% 822,383 34.7% Selling, general and administrative expenses 784,846 30.5% 680,998 28.7% Impairment and restructuring charges - 0.0% 17,119 0.7% Depreciation and amortization expense 103,760 4.0% 106,363 4.5% Operating income 239,629 9.3% 17,903 0.8% Interest expense, net 54,978 2.1% 1,700 0.1% Other (income) loss, net (20,993) (0.8%) 816 (0.0%) Income before income taxes 205,644 8.0% 15,387 0.7% Provision for income taxes 49,024 1.9% 3,992 0.2% Net income $156,620 6.1% $11,395 0.5% Net loss attributable to noncontrolling interests 987 0.0% 1,339 0.0% Net income attributable to AEO $157,607 6.1% $12,734 0.5% Net income per basic share attributable to AEO $0.94 $0.07 Net income per diluted share attributable to AEO $0.92 $0.07 Weighted average common shares outstanding - basic 167,447 175,156 Weighted average common shares outstanding - diluted 171,277 176,482
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Real Estate Highlights
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2Q Real Estate Summary (unaudited) (1) AE Brand includes AE stand alone locations, AE/Aerie side-by side locations, AE/OFFL/NE side-by-side locations, and AE/Aerie/OFFL/NE side-by-side locations. (2) Aerie (incl. OFFL/NE) includes Aerie stand alone locations, OFFL/NE stand alone locations, and Aerie/OFFL/NE side-by-side locations. (3) International license locations are not included in the consolidated store data or the total gross square footage calculation. Store formats may shift from quarter to quarter within each brand. A shift in store format within the brand is not considered a new store opening. Consolidated stores at beginning of period 1,170 Consolidated stores opened during the period AE Brand (1) - Aerie (incl. OFFL/NE) (2) 2 Todd Snyder - Unsubscribed - Consolidated stores closed during the period AE Brand (1) (2) Aerie (incl. OFFL/NE) (2) (2) Unsubscribed (1) Consolidated stores at end of period 1,167 AE Brand (1) 802 Aerie (incl. OFFL/NE) (2) 335 Todd Snyder 23 Unsubscribed 7 Total gross square footage at end of period 7,260 (In thousands) International licensed locations at end of period (3) 376
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Historical Quarterly Store Data by Brand (unaudited) (1) Total Stores includes Todd Snyder and Unsubscribed ** The fourth quarter of Fiscal 2023 represents the 14 weeks ended February 3, 2024. Store Counts Sqft By Brand AE SA Aerie SA Off/ine SA AE / Aerie SBS AE / Off/ine SBS AE / Aerie / Off/ine SBSBS Aerie / Off/ine SBS Total Stores (1) AE Aerie & Offline End Store Count Weighted Gross Square Feet End Store Count Weighted Gross Square Feet End Store Count Weighted Gross Square Feet End Store Count Weighted Gross Square Feet End Store Count Weighted Gross Square Feet End Store Count Weighted Gross Square Feet End Store Count Weighted Gross Square Feet End Store Count Weighted Gross Square Feet Weighted Gross Square Feet Weighted Gross Square Feet FY2022 1Q22 689 4,376,087 217 851,913 19 56,185 185 1,639,209 2 16,236 2 38,190 18 124,486 1,141 7,105,875 1Q22 5,619,427 1,464,808 2Q22 686 4,360,553 224 878,365 31 74,868 183 1,629,930 2 16,236 3 38,500 21 138,152 1,160 7,144,146 2Q22 5,573,736 1,544,487 3Q22 685 4,359,004 233 903,525 33 96,075 186 1,648,257 2 16,236 3 41,323 26 175,466 1,179 7,268,188 3Q22 5,603,096 1,636,790 4Q22 673 4,355,839 233 935,244 34 104,052 186 1,650,545 2 16,236 4 54,273 28 193,254 1,175 7,346,365 4Q22 5,607,958 1,701,486 FY2023 1Q23 674 4,267,335 234 930,288 34 104,783 186 1,654,391 2 16,236 5 58,889 29 207,553 1,180 7,281,914 1Q23 5,522,450 1,717,024 2Q23 674 4,262,274 236 939,059 34 104,783 185 1,650,535 2 16,236 5 59,957 30 214,916 1,184 7,296,202 2Q23 5,515,903 1,731,856 3Q23 679 4,263,763 238 948,558 38 116,003 187 1,650,629 2 16,236 5 59,957 31 225,388 1,199 7,333,797 3Q23 5,517,013 1,763,521 4Q23** 657 4,283,829 238 952,268 39 123,206 187 1,659,667 2 16,236 5 59,957 33 239,282 1,182 7,390,868 4Q23** 5,535,448 1,798,996 FY2024 1Q24 651 4,130,266 237 949,193 38 123,206 188 1,658,522 2 16,236 5 63,347 32 241,041 1,173 7,238,283 1Q24 5,383,944 1,797,159 2Q24 649 4,113,244 238 962,486 39 125,608 187 1,662,814 2 16,236 5 63,347 36 241,306 1,178 7,242,612 2Q24 5,368,895 1,816,146 3Q24 649 4,095,712 239 974,838 41 132,052 187 1,662,794 5 17,417 5 63,347 37 252,728 1,186 7,262,264 3Q24 5,348,993 1,849,894 4Q24 635 4,108,584 237 982,314 41 136,250 183 1,665,733 6 24,657 5 63,347 39 258,255 1,172 7,304,142 4Q24 5,363,303 1,875,838 FY2025 1Q25 635 4,030,868 239 975,055 42 133,966 182 1,657,161 6 24,971 5 63,347 40 260,139 1,176 7,209,190 1Q25 5,279,978 1,865,529 2Q25 635 4,024,843 236 938,922 43 137,179 183 1,654,774 6 24,971 5 68,331 46 321,788 1,185 7,240,270 2Q25 5,269,538 1,901,271 3Q25 637 4,017,456 238 943,305 44 139,944 181 1,626,325 6 24,971 6 79,315 47 343,987 1,190 7,274,372 3Q25 5,265,549 1,935,039 4Q24 608 3,997,893 233 952,758 47 151,603 181 1,636,100 6 24,971 10 128,289 52 374,526 1,168 7,339,926 4Q24 5,249,482 2,016,658 FY2026 1Q26 604 3,816,309 234 947,308 49 155,084 184 1,638,409 6 24,971 10 138,157 52 384,243 1,170 7,206,715 1Q26 5,098,297 2,034,632 2Q26 599 3,801,269 225 914,007 49 156,981 183 1,624,601 6 24,971 14 182,319 61 417,136 1,167 7,223,517 2Q26 5,096,791 2,052,941 Store formats may shift from quarter to quarter within each brand. A shift in store format within the brand is not considered a new store opening. These stores are removed from the comparable sales base but are included in total sales. These stores are returned to the comparable sales base in the 13th month following the format shift.
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Historical Financials
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Historical Financial Information - GAAP Basis (unaudited) (1) In Q1 2022, the Company adopted ASU 2020-06 under the modified retrospective method, which requires the Company to utilize the "if-converted" method of calculated diluted EPS. (2) Comparable sales includes results from Todd Snyder and Unsubscribed brands. Total revenue growth includes results from Todd Snyder and Unsubscribed brands and Quiet Platforms. (3) Comparable sales are calculated for stores and channels open at least one year over the comparable prior year period. In fiscal years following those with 53 weeks, the prior year period is shifted by one week to compare similar calendar weeks. A store is included in comparable sales in the thirteenth month of operation. However, stores that have a gross square footage change of 25% or greater due to a remodel are removed from the comparable sales base, but are included in total sales. These stores are returned to the comparable sales base in the thirteenth month following the remodel. Sales from American Eagle, Aerie, Todd Snyder, and Unsubscribed stores, as well as sales from AEO Direct and other digital channels, are included in total comparable sales. (4) Certain prior‑period amounts have been reclassified to conform to the current‑period presentation, including the separate presentation of noncontrolling interest. These reclassifications had no impact on the Company’s operating income, net income attributable to non-controlling interests, net income per common share attributable to AEO or cash flows. *Fiscal 2023 represents the 53 weeks ended February 3, 2024. Fiscal 2025 Fiscal 2026 (In thousands, except per share amounts and store counts) 2021 2022 2023* 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Total net revenue $5,010,785 $4,989,833 $5,261,770 $5,328,652 $1,089,599 $1,283,675 $1,362,701 $1,760,834 $5,547,236 $1,195,285 $1,380,375 Cost of sales, including certain buying, occupancy and warehousing expenses 3,018,995 3,244,585 3,237,192 3,239,719 767,178 783,713 810,824 1,109,773 3,521,915 739,113 708,311 Gross profit 1,991,790 1,745,248 2,024,578 2,088,933 322,421 499,962 551,877 651,061 2,025,321 456,172 672,064 Selling, general and administrative expenses 1,222,000 1,269,095 1,433,300 1,431,814 338,786 342,211 386,340 418,198 1,485,535 376,492 408,354 Impairment, restructuring and other charges 11,944 22,209 141,695 17,561 17,119 - - 84,483 101,603 - - Depreciation and amortization expense 166,781 206,897 226,866 212,255 51,697 54,666 52,963 52,635 211,961 51,454 52,305 Operating income (loss) 591,065 247,047 222,717 427,303 (85,181) 103,085 112,574 95,745 226,222 28,226 211,405 Debt related charges - 64,721 - - - - - - - - - Interest (income) expense, net 34,632 14,297 (6,190) (7,769) (219) 1,919 2,144 268 4,112 7,853 47,125 Other (income) expense, net (2,489) (9,608) (10,008) (4,685) 168 648 (13,313) (14,781) (27,278) (7,222) (13,771) Income (loss) before income taxes 558,922 177,637 238,915 439,757 (85,130) 100,518 123,743 110,258 249,388 27,595 178,051 Provision (benefit) for income taxes 139,293 53,358 69,820 112,854 (19,712) 23,705 33,238 26,636 63,866 4,658 44,366 Net income (loss) 419,629 124,279 169,095 326,903 (65,418) 76,813 90,505 83,622 185,522 22,937 133,685 Net loss attributable to noncontrolling interests (4) - 857 943 2,477 519 820 839 4,283 6,461 588 399 Net income attributable to AEO $419,629 $125,136 $170,038 $329,380 -$64,899 $77,633 $91,344 $87,905 $191,983 $23,525 $134,084 Net income (loss) per basic share attributable to AEO (4) $2.50 $0.69 $0.87 $1.71 -$0.36 $0.45 $0.54 $0.52 $1.12 $0.14 $0.80 Net income (loss) per diluted share attributable to AEO (1) (4) $2.03 $0.64 $0.86 $1.68 -$0.36 $0.45 $0.53 $0.50 $1.09 $0.14 $0.79 Weighted average common shares outstanding - basic 168,156 181,778 195,646 193,056 179,548 170,756 168,925 169,188 172,165 167,835 167,059 Weighted average common shares outstanding - diluted 206,529 205,226 196,863 196,412 179,548 171,659 172,860 175,701 176,141 172,342 170,180 Comparable sales (2) (3) 30% -7% 3% 4% -3% -1% 4% 8% 3% 8% 6% American Eagle brand comparable sales 35% -9% 1% 3% -2% -3% 1% 2% 0% -2% -1% Aerie brand comparable sales 27% -3% 8% 5% -4% 3% 11% 23% 9% 25% 19% Total revenue growth (2) 33% 0% 5% 1% -5% -1% 6% 10% 4% 10% 8% American Eagle brand revenue growth 30% -8% 3% 1% -4% -3% 3% 2% 1% -2% 1% Aerie brand revenue growth 39% 9% 11% 4% -3% 3% 13% 27% 12% 34% 25% Total store count - end of period 1,133 1,175 1,182 1,172 1,176 1,185 1,190 1,168 1,168 1,170 1,167 Weighted gross square feet - end of period 6,790 7,237 7,189 7,260 7,209 7,240 7,274 7,340 7,368 7,207 7,260
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