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About American Eagle Outfitters, Inc.

Once a purveyor of outdoor gear, American Eagle Outfitters now feathers its nest with jeans and polos. The mall-based retailer is a powerhouse in denim and sells other casual apparel and accessories -- aimed at men and women -- under its American Eagle Outfitters and fast-growing Aerie brands; top product categories include intimates, apparel, active wear, and swim collections. It also has two emerging brands: Tailgate (vintage sports-inspired apparel) and Todd Snyder New York (premium menswear). The company operates or licenses over 1,300 stores worldwide, although most are located in North America; it generates the majority of its sales in the US. It was founded in 1977.

Operations

The company operated in one reportable segment. American Eagle Outfitters (AEO) and Aerie brands are mostly sold in separate store locations given their contrasting branding. AEO sells clothing for men and women through more than 1000 stores and online while Aerie sells underwear and intimates for women through some 150 stand-alone and nearly 180 side-by-side stores, as well as online. American Eagle also operates five Tailgate Clothing and one Todd Snyder New York retail stores.

More than 50% of the company's revenue comes from AEO women's apparel and accessories and about 30% comes from men's apparel and accessories. Aerie products bring in the remainder of sales.

Geographic Reach

American Eagle is heavily reliant on the US, its largest market by far accounting for more than 85% of store locations and total revenue. The company has more than 80 locations in Canada (nearly 10% of total stores) and nearly 55 locations in Mexico, China, and Hong Kong. It also has a licensed portfolio of 215-plus stores in two dozen countries, with Israel, Japan, Saudi Arabia, South Korea, and Chile the largest markets. Products are sold online in more than 80 countries worldwide through its AEO Direct business.

The company has distribution facilities in Hazleton, Pennsylvania and Ottawa, Kansas as well as Ontario, Canada. In addition, there are third-party distribution centers in Mexico and Hong Kong to service our Company-owned stores in those regions.

The company is headquartered in Pittsburgh, Pennsylvania.

Sales and Marketing

American Eagle primarily targets men and women. It generates about 75% of revenue through its network of stores with the rest coming from online sales, which are growing at a fast clip.

The company also offers AEO Connected, a highly digitized loyalty program serving all American Eagle and Aerie customers.

The Company recognized $151.5 million, $143.2 million, and $129.8 million in advertising expense during 2019, 2018, and 2017, respectively.

Financial Performance

American Eagle has seen consistent revenue growth over the past five years with sales up 22% since fiscal 2016. The success has been driven by strong customer engagement and positive traffic across brands and channels. In particular, Aerie delivered exceptional growth. Net income has been a little more sporadic, but is significantly higher than it was five years ago.

Revenue in fiscal 2019 increased 7% to $4.3 billion compared to $4 billion for fiscal 2018. Included in total net revenue for 2019 was $40 million recognized for license royalties from a third-party operator of AE stores in Japan.

Net income decreased to $191.3 million in 2019 from $261.9 million the prior year. The change in net income was attributable to an increase of 5% to $1 billion in selling, general, and administrative expenses as well as a 6% on depreciation and amortization expense.

Cash at the end of fiscal 2019 was $361.9 million, an increase of $28.6 million from the prior year. Cash from operations contributed $415.4 million to the coffers, while investing activities used $174.9 million, mainly for capital expenditures and other investing activities. Financing activities used another $211.2 million for repurchase of common stock and dividends to stockholders.

Strategy

American Eagle is focused on driving its brands forward and delivering an exceptional customer experience across channels. It prioritizes delivering innovation, quality and outstanding value to its customers; leveraging American Eagle's leading position in jeans and bottoms; continuing to accelerate the growth of Aerie as a leading intimates-inspired lifestyle brand; growing its brands globally using the appropriate ownership structure to balance risk/return in each market; and focusing on delivering consistent profitable revenue growth and continuing to invest in high return projects.

Along with many of its retail brethren, American Eagle is focused on creating an Omni channel experience for its customers, allowing them to browse, buy, pick up, and return merchandise online, in stores, or through a combination of both. Investments in this area include upgraded technology that enables a single view of inventory across channels, connecting physical and digital stores. The company's distribution centers are part of the Omni channel initiative and serve both stores and digital businesses.

Related investments have been centered on mobile technology, digital marketing, and the digital customer experience. It focused its investments in three key areas: making significant advances in mobile technology, investing in digital marketing and improving the digital customer experience.

American Eagle plans to continue to increase the number of locations under license agreements or similar arrangements as part of our disciplined approach to global expansion. As of February 2020, it had more than 1,000 company-owned retail stores and more than 200 license-operated locations.

Company Background

Retail Ventures, an operator of specialty clothing stores owned by the Silverman family, founded the first American Eagle Outfitters store in 1977. Another retailing clan, the Schottenstein family, bought a 50% stake in Retail Ventures when the Silvermans encountered financial difficulties in 1980.

In 1991 the Schottensteins acquired the remainder of Retail Ventures, and with it, 153 American Eagle Outfitters stores. The Schottensteins took the company public in 1994 as American Eagle Outfitters, with about 170 stores.

 

American Eagle Outfitters, Inc.

77 Hot Metal St
Pittsburgh, PA 15203-2381
Phone: 1 (412) 432-3300

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: AEO
Stock Exchange: , NYSE
EVP and CFO: Robert L. Madore
EVP and COO: Michael R. Rempell
Chairman and CEO: Jay L. Schottenstein
Employees (This Location): 500
Employees (All Locations): 84,000

Major Office Locations

Pittsburgh, PA

Other Locations

Anchorage, AK
Fairbanks, AK
Auburn, AL
Birmingham, AL
Decatur, AL
Dothan, AL
Florence, AL
Gadsden, AL
Hoover, AL
Huntsville, AL
Mobile, AL
Montgomery, AL
Spanish Fort, AL
Tuscaloosa, AL
Vestavia, AL
Fayetteville, AR
Fort Smith, AR
Hot Springs, AR
Little Rock, AR
North Little Rock, AR
Rogers, AR
Chandler, AZ
Gilbert, AZ
Glendale, AZ
Scottsdale, AZ
Tempe, AZ
Tucson, AZ
Yuma, AZ
Bakersfield, CA
Cabazon, CA
Calexico, CA
Camarillo, CA
Canoga Park, CA
Carlsbad, CA
Cerritos, CA
Chico, CA
Commerce, CA
Concord, CA
Culver City, CA
El Centro, CA
Emeryville, CA
Escondido, CA
Fresno, CA
Livermore, CA
Los Angeles, CA
Milpitas, CA
Modesto, CA
Napa, CA
National City, CA
Northridge, CA
Ontario, CA
Orange, CA
Palm Desert, CA
Pleasanton, CA
Rancho Cucamonga, CA
Redding, CA
Riverside, CA
Sacramento, CA
San Diego, CA
San Francisco, CA
San Mateo, CA
Santa Barbara, CA
Santa Clara, CA
Santa Clarita, CA
Santa Rosa, CA
Stockton, CA
Tejon Ranch, CA
Temecula, CA
Torrance, CA
Ventura, CA
Visalia, CA
Yuba City, CA
Aurora, CO
Broomfield, CO
Colorado Springs, CO
Denver, CO
Grand Junction, CO
Lakewood, CO
Littleton, CO
Loveland, CO
Silverthorne, CO
Canton, CT
Danbury, CT
Farmington, CT
Manchester, CT
Meriden, CT
Milford, CT
Trumbull, CT
Waterbury, CT
Waterford, CT
Dover, DE
Newark, DE
Rehoboth Beach, DE
Wilmington, DE
Altamonte Springs, FL
Boca Raton, FL
Boynton Beach, FL
Brandon, FL
Clearwater, FL
Coral Springs, FL
Daytona Beach, FL
Ellenton, FL
Estero, FL
Fort Lauderdale, FL
Fort Myers, FL
Gainesville, FL
Jacksonville, FL
Jensen Beach, FL
Kissimmee, FL
Lakeland, FL
Melbourne, FL
Miami, FL
Miami Beach, FL
Naples, FL
Ocala, FL
Orange Park, FL
Orlando, FL
Panama City, FL
Panama City Beach, FL
Pembroke Pines, FL
Pensacola, FL
Port Charlotte, FL
Port Richey, FL
Saint Petersburg, FL
Sanford, FL
Tallahassee, FL
Tampa, FL
Wesley Chapel, FL
West Palm Beach, FL
Albany, GA
Alpharetta, GA
Athens, GA
Atlanta, GA
Augusta, GA
Buford, GA
Centerville, GA
Columbus, GA
Commerce, GA
Dalton, GA
Douglasville, GA
Kennesaw, GA
Lithonia, GA
Macon, GA
Marietta, GA
Morrow, GA
Newnan, GA
Peachtree City, GA
Rome, GA
Savannah, GA
Valdosta, GA
Aiea, HI
Hilo, HI
Honolulu, HI
Kahului, HI
Ames, IA
Cedar Falls, IA
Cedar Rapids, IA
Coralville, IA
Davenport, IA
Des Moines, IA
Dubuque, IA
Sioux City, IA
West Des Moines, IA
Boise, ID
Idaho Falls, ID
Algonquin, IL
Aurora, IL
Bloomington, IL
Bolingbrook, IL
Champaign, IL
Chicago, IL
Chicago Ridge, IL
Deer Park, IL
Fairview Heights, IL
Forsyth, IL
Geneva, IL
Gurnee, IL
Joliet, IL
Lombard, IL
Oak Brook, IL
Orland Park, IL
Peoria, IL
Rockford, IL
Springfield, IL
Tuscola, IL
Vernon Hills, IL
Bloomington, IN
Carmel, IN
Clarksville, IN
Edinburgh, IN
Evansville, IN
Fort Wayne, IN
Greenwood, IN
Indianapolis, IN
Kokomo, IN
Lafayette, IN
Merrillville, IN
Mishawaka, IN
Muncie, IN
Noblesville, IN
Plainfield, IN
Richmond, IN
Terre Haute, IN
Kansas City, KS
Manhattan, KS
Ottawa, KS
Shawnee Mission, KS
Topeka, KS
Wichita, KS
Ashland, KY
Bowling Green, KY
Elizabethtown, KY
Lexington, KY
Louisville, KY
Owensboro, KY
Paducah, KY
Alexandria, LA
Baton Rouge, LA
Bossier City, LA
Gonzales, LA
Houma, LA
Lafayette, LA
Lake Charles, LA
Mandeville, LA
Metairie, LA
Monroe, LA
Shreveport, LA
Auburn, MA
Boston, MA
Braintree, MA
Burlington, MA
Cambridge, MA
Hadley, MA
Hingham, MA
Holyoke, MA
Hyannis, MA
Kingston, MA
Lanesboro, MA
Lee, MA
Leominster, MA
Lynnfield, MA
Marlborough, MA
Millbury, MA
Natick, MA
North Attleboro, MA
North Dartmouth, MA
Peabody, MA
Annapolis, MD
Baltimore, MD
Bel Air, MD
Bethesda, MD
Columbia, MD
Cumberland, MD
Frederick, MD
Glen Burnie, MD
Hagerstown, MD
Hanover, MD
Ocean City, MD
Oxon Hill, MD
Salisbury, MD
Waldorf, MD
Wheaton, MD
Augusta, ME
Ann Arbor, MI
Auburn Hills, MI
Birch Run, MI
Brighton, MI
Byron Center, MI
Farmington Hills, MI
Flint, MI
Grand Rapids, MI
Grandville, MI
Jackson, MI
Lansing, MI
Midland, MI
Muskegon, MI
Novi, MI
Okemos, MI
Portage, MI
Roseville, MI
Saginaw, MI
Sterling Heights, MI
Taylor, MI
Traverse City, MI
Westland, MI
Albertville, MN
Bloomington, MN
Duluth, MN
Eagan, MN
Eden Prairie, MN
Mankato, MN
Maple Grove, MN
Minneapolis, MN
Minnetonka, MN
Rochester, MN
Saint Cloud, MN
Saint Paul, MN
Woodbury, MN
Branson, MO
Cape Girardeau, MO
Chesterfield, MO
Columbia, MO
Independence, MO
Joplin, MO
Kansas City, MO
Saint Joseph, MO
Saint Louis, MO
Saint Peters, MO
Springfield, MO
Biloxi, MS
Hattiesburg, MS
Meridian, MS
Ridgeland, MS
Southaven, MS
Tupelo, MS
Billings, MT
Missoula, MT
Asheboro, NC
Asheville, NC
Charlotte, NC
Concord, NC
Durham, NC
Fayetteville, NC
Gastonia, NC
Goldsboro, NC
Greensboro, NC
Greenville, NC
Huntersville, NC
Jacksonville, NC
Mebane, NC
Pineville, NC
Raleigh, NC
Rocky Mount, NC
Wilmington, NC
Winston Salem, NC
Bismarck, ND
Fargo, ND
Grand Forks, ND
Minot, ND
Grand Island, NE
Lincoln, NE
Omaha, NE
Manchester, NH
Merrimack, NH
Nashua, NH
Newington, NH
Salem, NH
Atlantic City, NJ
Bridgewater, NJ
Cherry Hill, NJ
East Brunswick, NJ
Eatontown, NJ
Edison, NJ
Elizabeth, NJ
Flemington, NJ
Freehold, NJ
Jersey City, NJ
Lawrenceville, NJ
Livingston, NJ
Marlton, NJ
Mays Landing, NJ
Moorestown, NJ
Paramus, NJ
Rockaway, NJ
Toms River, NJ
Vineland, NJ
Wayne, NJ
Woodbridge, NJ
Woodbury, NJ
Albuquerque, NM
Las Cruces, NM
Henderson, NV
Las Vegas, NV
Reno, NV
Albany, NY
Bay Shore, NY
Bayside, NY
Blasdell, NY
Brooklyn, NY
Buffalo, NY
Deer Park, NY
Elmhurst, NY
Garden City, NY
Hicksville, NY
Horseheads, NY
Ithaca, NY
Lake Grove, NY
Lakewood, NY
Massapequa, NY
Middletown, NY
New York, NY
Niagara Falls, NY
Oceanside, NY
Plattsburgh, NY
Poughkeepsie, NY
Queensbury, NY
Rochester, NY
Saratoga Springs, NY
Scarsdale, NY
Staten Island, NY
Syracuse, NY
Victor, NY
West Nyack, NY
Akron, OH
Aurora, OH
Beavercreek, OH
Canton, OH
Cincinnati, OH
Cleveland, OH
Columbus, OH
Dayton, OH
Dublin, OH
Fairlawn, OH
Findlay, OH
Jeffersonville, OH
Lancaster, OH
Liberty Township, OH
Mansfield, OH
Maumee, OH
Newark, OH
Niles, OH
North Olmsted, OH
North Royalton, OH
Saint Clairsville, OH
Sandusky, OH
Strongsville, OH
Westlake, OH
Youngstown, OH
Zanesville, OH
Lawton, OK
Muskogee, OK
Norman, OK
Oklahoma City, OK
Stillwater, OK
Tulsa, OK
Bend, OR
Eugene, OR
Hillsboro, OR
Lincoln City, OR
Medford, OR
Portland, OR
Salem, OR
Tigard, OR
Woodburn, OR
Austin, PA
Bensalem, PA
Butler, PA
Camp Hill, PA
Center Valley, PA
Chambersburg, PA
Cranberry Township, PA
Easton, PA
Erie, PA
Exton, PA
Hazle Township, PA
Hershey, PA
Indiana, PA
King Of Prussia, PA
Lancaster, PA
Langhorne, PA
Leetsdale, PA
Madison, PA
Mercer, PA
Monaca, PA
Monroeville, PA
Moosic, PA
Muncy, PA
North Wales, PA
Pittsburgh, PA
Pooler, PA
Reading, PA
Scranton, PA
Selinsgrove, PA
Springfield, PA
Tarentum, PA
Uniontown, PA
Warrendale, PA
Washington, PA
Whitehall, PA
Wilkes Barre, PA
Willow Grove, PA
York, PA
Providence, RI
Smithfield, RI
Warwick, RI
Anderson, SC
Columbia, SC
Florence, SC
Gaffney, SC
Myrtle Beach, SC
North Charleston, SC
Rock Hill, SC
Spartanburg, SC
Rapid City, SD
Sioux Falls, SD
Chattanooga, TN
Clarksville, TN
Cleveland, TN
Franklin, TN
Jackson, TN
Johnson City, TN
Kingsport, TN
Knoxville, TN
Lebanon, TN
Maryville, TN
Memphis, TN
Morristown, TN
Nashville, TN
Sevierville, TN
Abilene, TX
Allen, TX
Amarillo, TX
Arlington, TX
Austin, TX
Beaumont, TX
Canutillo, TX
Cedar Park, TX
College Station, TX
Corpus Christi, TX
Dallas, TX
Denton, TX
El Paso, TX
Fort Worth, TX
Friendswood, TX
Frisco, TX
Garland, TX
Grapevine, TX
Houston, TX
Humble, TX
Hurst, TX
Irving, TX
Katy, TX
Killeen, TX
Lake Jackson, TX
Laredo, TX
Longview, TX
Lubbock, TX
Lufkin, TX
Mcallen, TX
Mesquite, TX
Midland, TX
Plano, TX
San Angelo, TX
San Antonio, TX
San Marcos, TX
Spring, TX
Sugar Land, TX
Texas City, TX
Tyler, TX
Victoria, TX
Waco, TX
Layton, UT
Orem, UT
Park City, UT
Salt Lake City, UT
Sandy, UT
Alexandria, VA
Arlington, VA
Colonial Heights, VA
Danville, VA
Dulles, VA
Fairfax, VA
Fredericksburg, VA
Harrisonburg, VA
Leesburg, VA
Lynchburg, VA
Manassas, VA
Mc Lean, VA
Newport News, VA
Norfolk, VA
North Chesterfield, VA
Richmond, VA
Roanoke, VA
Virginia Beach, VA
Winchester, VA
Woodbridge, VA
South Burlington, VT
Bellevue, WA
Bellingham, WA
Burlington, WA
Kennewick, WA
Lynnwood, WA
Olympia, WA
Puyallup, WA
Redmond, WA
Seattle, WA
Silverdale, WA
Spokane, WA
Tacoma, WA
Tukwila, WA
Union Gap, WA
Vancouver, WA
Brookfield, WI
Eau Claire, WI
Green Bay, WI
Greendale, WI
Janesville, WI
La Crosse, WI
Madison, WI
Milwaukee, WI
Wausau, WI
Barboursville, WV
Bluefield, WV
Bridgeport, WV
Charleston, WV
Morgantown, WV
Mount Hope, WV
Parkersburg, WV
Abbotsford, Canada
Anjou, Canada
Barrie, Canada
Belleville, Canada
Brampton, Canada
Brossard, Canada
Burlington, Canada
Burnaby, Canada
Calgary, Canada
Cambridge, Canada
Concord, Canada
Coquitlam, Canada
Côte Saint-Luc, Canada
Dartmouth, Canada
Dieppe, Canada
Edmonton, Canada
Fredericton, Canada
Georgetown, Canada
Guelph, Canada
Halifax, Canada
Hamilton, Canada
Kanata, Canada
Kelowna, Canada
Kingston, Canada
Kitchener, Canada
Langley, Canada
London, Canada
Markham, Canada
Mississauga, Canada
Montréal, Canada
Newmarket, Canada
Niagara On The Lake, Canada
North Bay, Canada
North York, Canada
Oakville, Canada
Orleans, Canada
Oshawa, Canada
Ottawa, Canada
Peterborough, Canada
Pickering, Canada
Red Deer, Canada
Regina, Canada
Richmond, Canada
Richmond Hill, Canada
Rocky View County, Canada
Saint-Bruno, Canada
Saint John, Canada
Saint-Lambert, Canada
Sarnia, Canada
Saskatoon, Canada
Scarborough, Canada
St Catharines, Canada
St. John'S, Canada
Sudbury, Canada
Surrey, Canada
Thornhill, Canada
Thunder Bay, Canada
Toronto, Canada
Vancouver, Canada
Victoria, Canada
Waterloo, Canada
West Vancouver, Canada
Windsor, Canada
Winnipeg, Canada