#1AEO INC. Investor Presentation April 2020 TEX#2Forward Looking Statements SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AEO INC. 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 are based on the views and beliefs of management, as well as assumptions and estimates made by management.. All forward- looking statements made by the company involve material risks and uncertainties and are subject to change based on many important factors, some of which may be beyond the company's control. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," "potential," "will," and similar expressions may identify forward-looking statements. Our forward-looking statements include, but are not limited to, statements regarding our corporate strategy and the ability of our offering of new convertible senior unsecured notes to minimize COVID-19 business disruptions. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of the company's Annual Report on Form 10-K for the fiscal year ended February 1, 2020 and our subsequent reports filed with the SEC, 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 presentation or otherwise made by management: the anticipated impact to consumer demand and our supply chain due to the spread of the coronavirus (COVID-19); the risk that the company's operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and changes in global economic and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity. NON-GAAP FINANCIAL MEASURES This presentation contains certain financial measures that differ from what is reported under generally accepted accounting principles ("GAAP"). These non- GAAP financial measures include adjusted EBITDA, free cash flow and levered adjusted free cash flow, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting, and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A reconciliation of the Company's non-GAAP measures used in these materials to the most directly comparable GAAP financial measures has been provided to you in the appendix to this presentation. 1#3Company Overview Business Description ■ AEO operates two of the most popular brands in the market today, American Eagle and Aerie - - American Eagle, famous for its leading jeans collection, also offers a broad assortment of clothing and accessories aimed at 15 to 25 year olds - Aerie, rooted in body positivity and empowerment, is one of the fastest growing specialty retail brands. We offer intimates, soft apparel, sleepwear, swim and personal care products ■ Broad customer reach through a strong digital business, leading omni-channel capabilities and a fleet of 1,095 company-owned stores and 217 licensed store locations Historical Performance AEO INC. Two Highly-Recognized Leading Brands AMERICAN EAGLE aerie ~$3.5B 2019 Revenue ~$800M 2019 Revenue AEO INC. Our brands are connected under the core tenet of REAL, which is inclusive, optimistic and celebrates self-expression. Our purpose is to show the world that there's REAL power in the optimism of youth. Market-Leading Online Presence '15A '19A CAGR: 5.2% $3,522 $3,610 $3,796 $4,308 $4,036 14.2% 13.3% 13.0% 12.6% 11.5% 2015A 2016A 2017A Revenue Comp Sales: 7.0% 3.0% 4.0% 2018A Adj. EBITDA Margin 8.0% 2019A 3.0% FY19 Online Penetration Online Penetration 29% Stores 71% 33% Q4'19 AEO online penetration 46% Q4'19 Aerie online penetration 2#420 Quarters of Positive Comp Sales Consolidated AEO Comp Sales AEO INC. 11% 9% 9% 9% 8% 8% 7% 6% 6% 6% 5% 4% 3% 3% 2% 2% 2% 2% 2% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015A 2016A 2017A 2018A 2019A American Eagle Brand Comp Sales 10% 8% 7% 7% 5% 5% 4% 4% 4% 3% 3% 2% 1% 0% 1% 0% (1%) (1%) (1%) (3%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4' 2015A 2016A 2017A 2018A 2019A Aerie Brand Comp Sales 32% 26% 24% 25% 26% 21% 21% 18% 17% 19% 12% 34% 38% 32% 27% 26% 23% 20% 14% 16% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015A 2016A 2017A 2018A 2019A 3#5American Eagle - Favorite Apparel Brand ~$3.5 billion in annual revenue - consistent brand growth fueled by leading jeans and bottoms businesses 26 consecutive quarters of record jeans sales ■ Strong product innovation - high- quality fabrics, fit, style + affordability Focus on outfitting centered on jeans A favorite apparel brand among teens based on AE's focus on individual self- expression¹ 1 Piper Sandler Taking Stock With Teens Survey - April 8, 2020. AEO INC. 4#6AEO is a Favorite Among Teens Top 10 Favorite Apparel Brands - Spring 2020 Rank Retailer % % Change YoY 1 Nike 25% 3% I 2 American Eagle 10% 1% 3 Adidas 5% 4 Hollister 4% 1% 5 PacSun 3% 6 lululemon 3% 7 Forever 21 3% (2%) 8 Urban Outfitters 3% 9 H&M 2% 10 Vans 2% n/a AEO INC. Popular Across Genders #1 with Females #3 with Males AEO continues to own a large portion of the teen clothing wallet Annual Teen Spending 1 $2,300 Clothing Share of Wallet 1 AEO Customer Spend 2 ~19% $437 ~40% $174 Total Clothing Wallet 1 Piper Sandler Taking Stock With Teens Survey - April 8, 2020. 2 AEO Customer Analytics - Trailing Twelve Month KPIs through February 2020. 5#7Aerie - A Top Performer in Specialty Retail 21 consecutive quarters of double-digit growth Well positioned intimates brand rooted in body positivity and women's empowerment Strong customer following – acquisitions increasing at a double digit pace Expanding market presence, fueled by store growth and online penetration (46% of revenue in Q4'19) Successful product extensions across apparel, fitness, intimates, swim and accessories Increasing brand profit and margins as business scales up AEO INC. 6#8Robust Omni-Channel Platform Strong Presence in Our Core North American Markets with Compelling Global Reach AEO INC. Total doors¹ 118 Total doors¹ 1,079 2 Dual headquarters in Pittsburgh & NYC Distribution Centers in Hazleton (PA), Ottawa (KS) & Mississauga (CAD) 3PL Hubs in Atlanta (GA) & Boston (MA) Total doors¹ 63 TOTAL UNITED STATES AMERICAN EAGLE 940 AMERICAN EAGLE 803 aerie 322 aerie 269 CANADA MEXICO AMERICAN EAGLE aerie 85 33 AMERICAN EAGLE 43 aerie 20 217 licensed locations globally in 24 countries Healthy Store Fleet Supporting Our Highly Compelling Omni-Channel Platform HEALTHY AND FLEXIBLE STORE FLEET COMPELLING OMNI-CHANNEL PLATFORM 95% of stores were 4-Wall positive in 2019 80% of mall exposure in A+B centers Average lease term of 3.6 years, 50% of C mall leases expire in 2020 1 A Door represents an entrance to a store. 1 Location can include 2 doors (American Eagle & Aerie Side-by-Side). 2 Includes 2 Todd Snyder locations and 5 Tailgate locations. Ship to 80+ countries globally Piloting U.S. same day delivery this summer Key global digital partnerships 天猫 TMALL 7#9Leading Online Penetration AEO INC AEO's digital business has delivered 5 consecutive years of double-digit growth Highly Profitable, Consistent Digital Revenue Growth ($ in millions) $643 $798 2015A 2016A '15A-'19A CAGR: 18% $1,001 $1,123 $1,253 Leading Online Penetration Across Brands 2017A 2018A 2019A Continued Focus On Omni-channel Capabilities AEO 29% Digital1 (+100bps YoY) BUY ONLINE, SHIP FROM STORE OMNI- CHANNEL DISTRIBUTION CENTERS STORE TO DOOR AMERICAN EAGLE 27% Digital1 (+200bps YoY) 1 Reflects FY 2019. 2 Successfully tested. 3 Pending test. aerie 43% Digital1 (+100bps YoY) BUY ONLINE, PICK-UP FROM STORE 2 CURBSIDE PICK-UP 3 POPULAR MOBILE APP 8#10Environmental, Social and Governance Initiatives Our purpose is to show the world there is REAL power in the optimism of youth Sustainability Strategy AEO INC. We Care About our World 30% Reduction of water usage in jeans 1 2019 was a Record Year in Charitable Giving $5.5 million Philanthropic Causes 60% Reduction in Carbon Emissions by 2040 Products made with 100% sustainably sourced cotton 1 Donated to COVID-19 Relief Efforts $1.0 million Along with 1 Million Face Masks 1.2M 1 Targets to be achieved by 2023. 2 Used for collection debuting Spring 2020. Plastic bottles used in Real Good Swim collection 2 AMERICA'S FOOD FUND Partnerships with Good360 GOODS FOR THE GREATER GOOD™ FEEDING NEIGHBORS IN NEED 9#11AEO Corporate Strategy AEO INC. By working tirelessly to give our customers inspiring product and experiences, we will stay at the forefront of retail Strategy 1 Strategy 2 Strategy 3 Strategy 4 Strategy 5 Grow American Eagle through the strength of its signature bottoms and a focus on outfitting Accelerate Aerie by building its community, delivering exceptional product and expanding markets and categories Leverage our people, stores, Prioritize near- term liquidity digital and supply chain to deliver an exceptional experience across channels while continuing to support long- term value creation opportunities Cultivate a unified culture with shared vision and values 10 10#12Long Track Record of Topline Growth and Profitability _ AEO INC. ($ in millions) Net Revenue '15A-'19A CAGR: 5.2% $4,036 $4,308 $3,522 $3,610 $3,796 2015A 2016A Comp Sales Growth 7% 3% ($ in millions) $511 $469 2017A 4% Adjusted EBITDA 1 '15A '19A CAGR: 1.4% $493 2018A 2019A 8% 3% $509 $495 2015A 2016A 2017A 2018A 2019A Annual Free Cash Flow 2 ($ in millions) $189 $204 2015A 2016A 1 Adjusted EBITDA calculated as Operating Income plus Impairments plus D&A. 2 Free cash flow defined as Cash Flow from Operations less Capital Expenditures. $225 $268 $205 2017A 2018A 2019A 11#13AEO Finished FY19 in a Strong Position Summary Results vs Prior Year Net Sales ($ in millions) $4,036 $4,308 $1,315 $1,244 Highlights • 2019A Q4 '18 Q4 '19 • 2018A Consolidated Comp Sales 8% 3% 2018A 2019A American Eagle Comp Sales 5% 2018A Aerie Comp Sales 29% 2018A Online Penetration 28% 6% 2% Q4'18 Q4 '19 3% 0% 2019A Q4 '18 (3%) Q4 '19 26% 20% 23% 2019A Q4 '18 Q4'19 33% 29% 31% AEO INC. Strong Q4 and FY 2019 performance Strong results demonstrated continued momentum in market share growth in teens, strong customer engagement and positive traffic and transaction trends Q4 Highlights • Comparable sales growth of 2%, marking the 20th consecutive quarter of positive comparable sales growth Aerie's comparable sales increased 26%, following a 23% increase in the prior year, marking the 21st consecutive quarter of double-digit sales growth American Eagle men's and women's jeans delivered another best-ever quarter, marking the 26th consecutive quarter of record jeans sales Online penetration increased to 33% of revenue FY 2019 Highlights • Sales increased to $4.3 billion, reflecting another year of record sales Aerie accelerated sequentially each quarter and grew comps 20% for the year Online penetration increased to 29% of 2018A 2019A Q4 '18 Q4 '19 revenue 12#14AEO Moved Quickly in Response to COVID-19 to COVID-19 AEO INC. The proposed credit enhancing transaction offers near term liquidity and allows the Company to best position itself to capitalize on significant growth and productivity opportunities Actions Taken Additional Drivers Stores ■ All stores have been closed effective the end of business on March 17, 2020 Operating Expenses ■ All operating expenses under ongoing review Guidance ■ FY2020 guidance withdrawn due to current uncertainty Leases Currently in discussions with select landlords to defer rent payment Share Repurchases/ Suspended share repurchase program ■ Deferred payment of Q1 dividend Dividend Operating Expenses Capex ■ Further Capex reductions possible throughout 2020 Temporary furloughs of store, field and corporate associates beginning April 5 Delayed merit increases, hiring freeze and other cost savings actions CARES Act ■ Potential cash tax benefits Working Capital ■ Cuts to inventory receipts due to reduced demand Working Capital ■Further deferrals and actions available to improve near-term cash position Capex ■ Plan to reduce capital expenditures by at least $100 million vs. previous guidance ($225 to $275 million) and will continue to assess Credit Facility ■ Additional capacity under its current Revolving Credit Facility 13#15Investment Highlights Strong Portfolio of Highly Recognized and Trusted Brands 1 2 Dominant Market Shares in Growth Categories for both American Eagle and Aerie Aerie: One of the Fastest Growing Specialty Retail Brands 21 Consecutive Quarters of Double-Digit Growth American Eagle: #1 Jeans Business Favorite Teen Brand That Continues to Dominate the Jeans Market 1 3 AEO INC. Broad Customer Reach Across Digital, Omni and Retail 4 5 UT AEO INC. Strong Digital Business, Leading Omni-Channel Capabilities and a Fleet of 1,095 Company-Owned Stores and 217 Franchise Locations Significant Cash Reserves Provide Substantial Liquidity $881 Million Pro Forma Cash Balance for Operational Flexibility 6 Strong Financial Performance with Continued Momentum 7 20 Quarters of Positive Comparable Sales Growth + Double Digit Digital Growth Experienced Management Team Demonstrated Track Record of Driving Financial Performance 1 #1 market share position is for our core customer/demographic age group of men & women aged 15-25 per NPD as of the trailing 12 months ending February 2020. 14#16AEO's Experienced Leadership Team Jay Schottenstein Chairman and Chief Executive Officer AEO Since: 1992 AEO INC. Chad Kessler American Eagle Global Brand President AEO Since: 2014 Mike Mathias Chief Financial Officer AEO Since: 1998 Jen Foyle Aerie Global Brand President AEO Since: 2010 Michael Rempell Chief Operating Officer AEO Since: 2000 Andrew McLean Chief Commercial Officer AEO Since: 2016 Fred Grover Special Projects AEO Since: 1978 Stacy Siegal General Counsel AEO Since: 2016 15#17Appendix 16#18Appendix: Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation ($ in millions) Fiscal Year Ending February 1, 2020 AEO INC. Income from Operations 2015A 2016A 2017A 2018A 2019A $319.9 $331.5 $302.8 $337.1 $233.3 Adjustments: Impairment & Restructuring Charges 0.0 21.2 20.6 1.6 80.5 Adjusted Operating Income $319.9 $352.6 $323.4 $338.7 $313.8 Plus: Depreciation and Amortization 148.9 158.2 169.5 170.5 181.4 Adjusted EBITDA $468.7 $510.8 $492.9 $509.2 $495.2 17