![Page 1: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/1.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com
![Page 2: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/2.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 2
Safe Harbor StatementAny Remarks that we make today about future expectations, plans and prospects for American Eagle Outfitters which are not historical facts, are forward-looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause the Company’s actual results to differ from those contained in the forward-looking statements, please read the section entitled “Safe Harbor Statement, Seasonality, and Business Risks” in the Company’s most recent Form 10-K and Form 10-Q, each on file with the Securities and Exchange Commission.
![Page 3: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/3.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 3
First Half 2005 RecapSales $967 Million
Sales Growth +33%
Comp Store Sales +24%
Operating Income $174 Million
Operating Margin 17.9% vs. 12.9%
Earnings Per Share $0.74 vs. $0.41 -- 80% Growth
![Page 4: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/4.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 4
AE Cash Flow
$92$186Free Cash Flow
-19-9- Dividend Payments
-39-97- Capital Expenditures
+37+68+ Depreciation & Amortization
$113$224Net Income
First Half 20052004($ in millions)
![Page 5: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/5.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 5
Second Quarter Balance Sheet Data
18%30%Return on Equity (TTM)
3.0x4.0xCurrent Ratio
$359 Million$751 MillionCash, Short & Long-Term Investments
20042005
![Page 6: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/6.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 6
AE Corporate Vision:
• We will be a highly profitable, international, multi-channel retail organization.
• We will grow through a portfolio of our own distinct and segmented casual lifestyle apparel brands.
![Page 7: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/7.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 7
Will Be Achieved Through:
• Customer focus
• Innovation
• A diverse world-class team
![Page 8: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/8.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com
What Have We Achieved?
![Page 9: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/9.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com
Strong Brand Positioning
![Page 10: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/10.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 10
Coolest Brands (12-19 Year Olds)
Source: Teen Research Unlimited
5%American Eagle5%Coke/Pepsi6%Nintendo10%Gap11%Sony12%Tommy Hilfiger13%Old Navy14%Abercrombie & Fitch20%NikeTotalBrand
4%Chevrolet5%Aeropostale5%Microsoft6%Old Navy/Hollister/Pepsi7%Coca-Cola/Adidas/Ford8%Abercrombie & Fitch
10%American Eagle12%Sony18%NikeTotalBrand
Spring 2000 Spring 2005
![Page 11: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/11.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 11
Specialty Stores Shopped Last 12 Months
Source: Teen Research Unlimited
Spring 2005 (12-19 Year Olds)
28%American Eagle
14%Express/Wet Seal15%Hollister20%Abercrombie & Fitch23%Aeropostale23%Hot Topic
25%24%
Pacific SunwearVictoria’s Secret
25%Gap
48%Old NavyTotalStore
![Page 12: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/12.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 12
20 Consecutive Months of Positive Comps2004
1Q +9.8%
2Q +13.8%
3Q +26.8%
4Q +28.6%
FY 2004 +21.4%
2005
1Q +27.1%
2Q +21.1%
August +11.8%
September +13.0%
YTD 2005 +20.1%
![Page 13: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/13.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 13
Operating Metrics
Comparable Store Sales +20%
Transactions Per Store +15%
Average Unit Retail Price +8%
YTD September 2005 YTD September 2004
Comparable Store Sales +16%
Transactions Per Store +10%
Average Unit Retail Price +7%
![Page 14: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/14.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 14
YTD Comps Strong Across Regions
Northeast +21%
Mid-Atlantic +23%
Southeast +24%
Southwest +22%
Canada +20%
Midwest +16%
West +15%
![Page 15: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/15.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 15
Operating Margin Up 1,000 bps
Record Operating Profit
$363
$133$159$160$141
13.3% 12.6% 11.5%9.3%
2000 2001 2002 2003 2004
$ in
mill
ions
19.3%
![Page 16: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/16.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com
What is Driving Improved Performance?
![Page 17: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/17.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 17
Strengthened Merchandising/Design Operation
• New Talent
• Restructured Process - Improved Product
- Reduced Late Deliveries
- 6 Collections/10 Floorsets
![Page 18: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/18.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 18
Sharp Focus on Target Customer
• The widest segment of the 15-25 year old market
• The “Go To” brand for high school and college kids
![Page 19: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/19.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 19
Merchandise Strengths
• Fashion trends made
wearable
• Everyday essentials
• Easy on the wallet
• Built to last
![Page 20: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/20.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 20
Staying True To Value Message:
Sweaters$39.50
Graphic Tees
$19.50
Hoodies$29.50/$39.50
Denim$29.50/$39.50
Layering Tees
$24.50/$29.50
Rugbys$34.50/ $36.50
![Page 21: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/21.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com
Teen Specialty Apparel Retail MarketplacePR
ICE
AGE20 Year OldYounger Older
Higher
Lower
Value Hot Topic
Hollister
Abercrombie & Fitch
American Eagle
OutfittersAeropostale
Gap
J. Crew
Pacific Sunwear
![Page 22: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/22.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 22
we are:realcool
essentialquality
good valuefun
friendlyopen-minded
we are not:too trendy
trashydisposable
cheapoverpriced
formalintimidating
elitist
What Differentiates Us…
![Page 23: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/23.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 23
Strong New Store EconomicsFirst 12 Months of Operations (67 stores)*
Average Net Sales: $2.12 Million
Average Gross Feet: 5,857
Four Wall Profit: $405,630; 19% to Sales
Cash Flow: $470,653; 22% to Sales
Investment: $527,996Pre-tax ROI: 89%After-tax ROI: 55%
* First 12 months of operation for 67 stores opened since the beginning of 2003
![Page 24: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/24.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 24
2004 Remodeled Stores*
5,500$164
$900,000$514
$2,826,000
Post-Remo
+28%4,300Square Footage+44%$114Profit/Foot+83%$492,000Profit+15%$448Sales/Foot
+47%$1,925,000Sales
% GrowthPre-Remo
* Trailing 12 months of operations for 20 stores
![Page 25: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/25.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com
Holiday 2005 Collection
![Page 26: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/26.jpg)
![Page 27: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/27.jpg)
![Page 28: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/28.jpg)
![Page 29: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/29.jpg)
![Page 30: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/30.jpg)
![Page 31: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/31.jpg)
![Page 32: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/32.jpg)
![Page 33: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/33.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 33
Strong Real Estate PortfolioSince 1999:
• Opened 220 “A” Center Stores
• 260 Store Renovations
• 94 Store Location Upgrades
• Flagship Stores – New York, LA, San Francisco, Seattle
• New Markets – Alaska, Puerto Rico, Hawaii
![Page 34: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/34.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 34
AE Marketing
• “Live Your Life” 2005 Tagline
• “AE All Access” – Loyalty
• Direct Mail – Best Customer Focus
• MTV On-Going Partnership
• Grassroots – Football Stadium Campaign
![Page 35: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/35.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com
What Will DriveFuture Growth?
![Page 36: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/36.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 36
Develop New Concept
• World-Class Team in Place
• Mall-Based Lifestyle Brand
• Fills a Void in the Marketplace
• Complementary to AE Brand
• Test Stores Open 2006
![Page 37: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/37.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 37
Growth Opportunity -- Maximize AE Brand
• Continue Store Growth square footage +5-6%
• Increase Store Sales Productivity Goal $550-$600/foot
• Build Powerful Categories (Denim, Knits)
• Pursue Sub-Brand Opportunities (Intimates, Personal Care)
• Maximize AE Direct
• Explore International
![Page 38: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/38.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 38
Financial Goals:
• Positive Comp Store
Sales/Higher Productivity
• Steady IMU Improvement
• Expense Leverage
• Double-Digit EPS Growth
![Page 39: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/39.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 39
New Store Growth Continues – 2006 Plan
• 40 – 50 New Stores
• 45 – 50 Renovations
![Page 40: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/40.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com 40
Our Vision:• Highly profitable
• International
• Multi-channel
• Portfolio of brands
Our Goal:• Double-digit EPS growth
![Page 41: Latest website presentation [Read-Only] - IIS Windows …library.corporate-ir.net/.../169479/Latestwebsitepresentation.pdfCoca-Cola/Adidas/Ford 7% Abercrombie & Fitch 8% American Eagle](https://reader031.vdocuments.site/reader031/viewer/2022030710/5af938d17f8b9aac248e2548/html5/thumbnails/41.jpg)
AMERICAN EAGLEOUTFITTERS
ae.com