#1AE INC. THIRD QUARTER 2023 Investor Presentation C comm#2Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995 This release 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 our expectations or beliefs concerning future events, including fourth quarter, fiscal year 2023 and fiscal year 2024 results. 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," and similar expressions may identify forward-looking statements. 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 our Annual Report on Form 10-K for the fiscal year ended January 28, 2023 and in any other filings that we may 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 for fiscal 2023 and beyond 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 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 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. AEO INC.#3Third Quarter Fiscal 2023 Results Record third quarter revenue of $1.3 billion, up 5% to last year, with growth across brands and channels. Operating profit of $125 million, up to last year; Second highest since 2012. Aerie posted all-time high third quarter revenue and operating margin; Comparable sales up 12% to last year American Eagle revenue and comparable sales up 2% to last year, reflecting continued sequential improvement in trends. Continued progress on profit improvement initiatives. AMERICAN 1977 EAGLE AEO INC#4"I am pleased with our third quarter results which demonstrated the strength of our brands and reflected continued progress on our growth and profit improvement initiatives. Our strategic priorities, underpinned by our customer-first focus and commitment to operational excellence, are propelling us forward. Momentum has continued across the business into the fourth quarter, driven by strong holiday assortments, engaging marketing campaigns and solid execution, supporting our improved outlook for the rest of the year. Looking ahead, we remain focused on advancing our long-term strategic priorities as we seek to create consistent growth across our portfolio of brands and generate efficiencies for improved profit flow-through. We are set up to deliver on both in 2024." Jay Schottenstein AEO's Executive Chairman of the Board and Chief Executive Officer AEO INC.#5N Key Highlights (unaudited) THIRD QUARTER 2023 2022 TOTAL NET REVENUE CHANGE 5% -3% GROSS MARGIN 41.8% 38.7% SELLING, GENERAL & ADMINISTRATIVE EXPENSES 27.8% 25.1% OPERATING MARGIN 9.6% 9.5% Inventory Data (unaudited) (in thousands) ENDING INVENTORY ENDING INVENTORY % CHANGE TO PRIOR YEAR QUARTERLY INVENTORY TURN1 October 28, 2023 October 29, 2022 $769,315 $797,731 -4% 8% 1.02 0.98 (1) Inventory turn is calculated as the total GAAP cost of goods sold for the quarterly periods divided by the straight average of the beginning and ending inventory balances from the consolidated balance sheets AEO INC.#6Third Quarter Net Revenue Total Company Revenue Up 5%; Digital Revenue Up 10%; Stores Revenue Up 3% AMERICAN EAGLE $857M $838M 3Q22 3Q23 AERIE $393M $350M 3Q22 3Q23 TOTAL AEO $1,301M $1,241M 3Q22 3Q23 Net Revenue Up 2% YOY Comparable Sales Up 2% YOY Net Revenue Up 12% YOY Comparable Sales Up 12% YOY Net Revenue Up 5% YOY Comparable Sales Up 5% YOY AEO INC.#7Third Quarter Operating Income Total Company Operating Income of $125M; Second highest since 2012 AMERICAN EAGLE AERIE CORPORATE & OTHER (1) TOTAL AEO Operating Margin 21.5% Operating Margin 19.3% Operating Margin 9.6% $174M $184M 3Q22 3Q23 -$113M $76M $57M 3Q22 3Q23 -$135M $125M $118M 3Q22 3Q23 3Q22 3Q23 (1) Corporate and Other includes revenue and operating results of the Todd Snyder and Unsubscribed brands and Quiet Platforms (net of intersegment eliminations), which have been identified as operating segments but are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. AEO INC.#8Outlook For Fiscal 2023, management expects revenue to be up mid-single digits to last year, compared to prior guidance for revenue up low single digits. Operating income is expected to be in the range of $340 to $350 million, at the high end of prior guidance of $325 to $350 million. This reflects strengthened demand and continued profit improvement. With better business trends driving higher incentives, SG&A is expected to be up in the low double digits for the year. For the fourth quarter, management's outlook reflects revenue up high-single digits and operating income in the range of $105 to $115 million. The revenue outlook includes a four point positive contribution from the 53rd week. SG&A is expected to be up approximately 20% including a 5 point impact from the 53rd week. Incentive accruals are also expected to be higher, which are skewed to the back half of the year. Depreciation is expected to be similar to the third quarter. AEO INC#9Results by Segment (Dollars in Thousands) (unaudited) For the 13 weeks ended October 28, 2023 Net Revenue: American Eagle Aerie Other(1) Intersegment Elimination Total Net Revenue Operating Income: October 29, 2022 For the 39 weeks ended October 28, 2023 October 29, 2022 $ 857,378 $ 837,575 $ 2,295,487 $ 2,301,051 $ 393,042 $ 349,712 $ 1,132,537 $ 1,043,129 $111,805 $ 115,346 $ 329,480 $ 315,333 $ (61,170) $ 1,301,055 $ 1,240,583 $ (62,050) $ (174,645) $ 3,582,859 $ (165,768) $ 3,493,745 $418,232 $ 188,772 $ (35,250) $ - $ (336,998) $ - $ (21,275) American Eagle Aerie Other(1)(3) Intersegment Elimination General corporate expenses(2) Impairment, restructuring and other charges(3) Total Operating Income Debt related charges Interest (income) expense, net Other (income) expense, net Income before income taxes $ 184,029 $ 75,850 $ (8,601) $ - $ (125,917) $ - $ 125,361 $ - $ (2,871) $ (3,984) $ 132,216 $ 174,129 $ 56,487 $ (11,650) $. $ (101,418) $ 117,548 $ - $ 3,878 $ 782 $ 112,888 Capital Expenditures American Eagle Aerie Other(1) General corporate expenditures(2) Total Capital Expenditures $213,481 $ - $ (1,229) $ (9,446) $224,156 $387,213 $111,414 $ (39,381) $ - $ (285,781) $ - $ 173,465 $60,066 $ 11,887 $ (5,501) $ 107,013 $ 17,219 $ 20,477 $ 48,411 $ 55,000 $ 9,499 $ 24,404 $ 31,576 $ 85,663 $ 9,760 $ 20,801 $ 21,490 $ 25,933 $ 6,478 $5,825 $ 33,438 $ 32,768 $ 42,956 $ 71,507 $ 134,915 $ 199,364 (1) (2) (3) The Todd Snyder brand, Unsubscribed brand, and Quiet Platforms have been identified as separate operating segments; however, as they do not meet the quantitative thresholds for separate disclosure, they are presented under the Other caption. General corporate expenses are comprised of general and administrative costs that management does not attribute to any of our operating segments. These costs primarily relate to corporate administration, information and technology resources, finance and human resources functional and organizational costs, depreciation and amortization of corporate assets, and other general and administrative expenses resulting from corporate-level activities and projects. $21.3 million of pre-tax impairment, restructuring and other charges related to Quiet Platforms, including $10.8 million of long-lived asset impairment charges, $5.6 million of severance costs, and $4.9 million of contract related charges for the 39 weeks ended October 28, 2023. AEO INC.#10Statement of Operations Summary-GAAP Basis (unaudited) 13 Weeks Ended (In thousands) Total net revenue Cost of sales, including certain buying, occupancy and warehousing expenses Gross profit Selling, general and administrative expenses Depreciation and amortization expense Operating income Interest (income) expense, net Other (income) expense, net Income before income taxes Provision for income taxes Net income Net income per basic share Net income per diluted share Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted 39 Weeks Ended (In thousands) Total net revenue Cost of sales, including certain buying, occupancy and warehousing expenses Gross profit Selling, general and administrative expenses Impairment, restructuring and other charges Depreciation and amortization expense Operating income Debt related charges Interest (income) expense, net Other (income) expense, net Income before income taxes Provision for income taxes Net income Net income per basic share Net income per diluted share Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted October 28, 2023 October 28, 2023 % of Revenue October 29, 2022 % of Revenue $1,301,055 100.0% $1,240,583 100.0% 757,258 58.2% 760,810 61.3% 543,797 41.8% 479,773 38.7% 361,992 27.8% 311,101 25.1% 56,444 4.4% 51,124 4.1% 125,361 9.6% 117,548 9.5% (2,871) -0.2% 3,878 0.3% (3,984) -0.3% 782 0.1% 132,216 10.1% 112,888 9.1% 35,516 2.7% 31,616 2.5% $96,700 7.4% $81,272 6.6% $0.50 $0.44 $0.49 $0.42 195,343 186,305 198,367 195,776 % of Revenue October 29, 2022 % of Revenue $3,582,859 100.0% $3,493,745 100.0% 2,172,867 60.6% 2,255,929 64.5% 1,409,992 39.4% 1,237,816 35.5% 1,006,210 28.1% 917,687 26.3% 21,275 0.6% 0.0% 169,026 4.7% 146,664 4.2% 213,481 6.0% 173,465 5.0% 0.0% 60,066 1.7% (1,229) 0.0% 11,887 0.3% (9,446) -0.3% (5,501) -0.2% 224,156 6.3% 107,013 3.2% 60,434 1.7% 36,466 1.2% $163,722 4.6% $70,547 2.0% $0.84 $0.39 $0.83 $0.36 195,467 178,637 197,969 207,499#11AE AMERICAN Liquidity and Capital Allocation KAE EAGLE ? AEO INC#123Q23 LIQUIDITY $875 M $241 M Cash & Cash Total Available Equivalents Liquidity *Includes $634M in net credit available Capital Allocation Priorities 1 Investments to Fuel Aerie's Growth & Build Capabilities 2 Preserving Balance Sheet Strength 3 Direct Shareholder Returns through a combination of dividends and share repurchases Cash Returned to Shareholders (unaudited) (In millions, except per share amounts) Cash used for share repurchases Number of shares repurchased Cash used for regular quarterly dividends Total dividends per share Total cash returned to shareholders 13 weeks ended 39 weeks ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 $ - $ - $ - $ - $ 19.7 $ - $59.1 $64.8 $0.100 $0.300 $0.360 $19.7 $ - $59.1 $64.8 AEO INC.#13Real Estate Highlights BAR CHORE - AEO IN INC.#143Q Real Estate Summary (unaudited) QTD Real Estate Summary (unaudited) Consolidated stores at beginning of period 1,184 Consolidated stores opened during the period AE Brand (2) Aerie (incl. OFFL/NE) (3) 88 Todd Snyder 1 Consolidated stores closed during the period AE Brand (2) 1 Aerie (incl. OFFL/NE) (3) 1 Consolidated stores at end of period 1,199 AE Brand (2) Aerie (incl. OFFL/NE) (3) Todd Snyder Unsubscribed Total gross square footage at end of period 873 307 14 5 7,333 [In Thousands] International licensed locations at end of period (1) 301 (1) International license locations are not included in the consolidated store data or the total gross square footage calculation. (2) 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. (3) Aerie (incl. OFFLINE) includes Aerie stand alone locations, OFFL/NE stand alone locations, and Aerie/OFFLINE side-by-side locations. AEO INC.#15Data by Brand (unaudited) Historical Quarterly Store Data by Store Counts FY2019 End Store Count AE SA Aerie SA Off/ine SA AE / Aerie SBS Weighted Weighted Weighted Weighted AE / Off/ine SBS Weighted AE / Aerie / Off/ine SBSBS Weighted Aerie / Off/ine SBS Weighted Total Stores (1) Weighted Gross Square Feet End Store Count Gross Square Feet End Store Gross Square Count Feet End Store Count Gross Square Feet End Store Count Gross Square Feet End Store Count Gross Square Feet End Store Count Gross Square Feet End Store Count Gross Square Feet Sqft By Brand Aerie & AE Weighted Offline Weighted Feet Gross Square Gross Square Feet 1Q19 785 4,875,024 119 446,170 0 0 151 1,172,404 0 0 0 0 0 0 1,061 6,511,508 1Q19 5,757,522 748,807 2Q19 781 4,982,495 131 470,538 0 0 158 1,363,891 0 0 0 0 0 0 1,075 3Q19 775 4,914,297 142 510,574 0 0 170 1,479,306 0 0 0 4Q19 766 4,857,895 148 546,624 0 0 174 1,515,532 0 0 0 O O 0 0 0 1,094 0 0 0 1,095 6,830,468 6,918,661 6,935,991 2Q19 6,022,181 803,108 3Q19 6,044,236 868,675 4Q19 5,991,896 937,916 FY2020 1Q20 767 4,852,895 148 560,190 0 0 175 1,539,215 0 0 0 0 0 1,093 6,958,479 2Q20 760 4,800,204 160 576,479 0 0 175 1,545,014 0 0 0 0 0 0 1,098 6,927,876 1Q20 2Q20 5,998,426 953,873 3Q20 758 4,795,476 166 619,454 1 275 177 1,554,830 0 0 0 0 0 0 1,105 6,978,215 3Q20 5,949,580 5,951,599 971,609 1,019,337 4Q20 722 4,571,986 171 651,258 4 9,051 178 1,566,771 1 7,060 - 1,078 6,814,668 4Q20 5,740,150 1,067,239 FY2021 1Q21 713 4,524,654 174 667,658 5 10,898 177 1,595,290 1 7,423 0 0 0 0 1,074 6,814,239 1Q21 5,702,752 1,103,207 2Q21 711 4,505,846 186 704,611 5 13,608 182 1,622,470 1 7,423 0 0 0 0 1,090 6,865,434 3Q21 716 4,530,387 203 749,207 8 15,289 181 1,628,785 1 7,423 0 0 0 0 4Q21 695 4,404,621 212 819,078 20 20 42,670 181 1,624,673 2 13,240 2 32,982 12 54,792 1,121 1,133 6,961,748 2Q21 3Q21 5,709,478 1,144,492 7,001,905 4Q21 5,735,321 5,620,294 1,213,811 1,361,398 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 2Q22 686 4,360,553 224 878,365 31 74,868 183 1,629,930 3Q22 685 4,359,004 233 903,525 33 96,075 186 1,648,257 2 2 16,236 3 38,500 21 138,152 1,141 1,160 7,105,875 1Q22 5,619,427 1,464,808 7,144,146 2Q22 5,573,736 1,544,487 16,236 3 41,323 26 175,466 4Q22 673 4,355,839 233 935,244 34 104,052 186 1,650,545 2 16,236 4 54,273 28 193,254 1,179 1,175 7,268,188 3Q22 5,603,096 1,636,790 7,346,365 4Q22 5,607,958 1,701,486 FY2023 1Q23 674 4,267,335 234 930,288 34 104,783 186 2Q23 674 4,262,274 236 939,059 34 104,783 185 1,654,391 1,650,535 2 16,236 5 01 2 16,236 5 LO 3Q23 679 4,263,763 238 948,558 38 116,003 187 1,650,629 2 16,236 5 01 58,889 29 207,553 59,957 30 214,916 59,957 31 225,388 1,180 1,184 1,199 7,281,914 1Q23 5,522,450 1,717,024 7,296,202 7,333,797 2Q23 3Q23 5,515,903 5,517,013 1,731,856 1,763,521 (1) Total Stores includes Todd Snyder and Unsubscribed AEO INC.#16AE North America Store Footprint 77 net store closures since FY19, reflecting a 9% reduction in sq. footage 931 1000 750 500 250 NORTH AMERICAN STORES 892 867 846 854 0 FY19 FY20 FY21 FY22 3Q23 Weighted Average Square Footage* FY19 FY20 FY21 5,984 5,904 5,692 FY22 3Q23 5,562 5,442 North America includes stores in the U.S., Canada and Mexico *Square footage excludes Aerie and OFFLINE selling square footage in AE side-by-side stores. AEO INC.#17Historical Financials AEO INC.#18Historical Financial Information - GAAP Basis (In thousands, except per share amounts and store counts) Total net revenue 2018 $4,035,720 2019 $4,308,212 2020 2021 Q1 $3,759,113 $5,010,785 $1,055,037 Q2 $1,198,124 Fiscal 2022 Q3 $1,240,583 Fiscal 2023 Q4 2022 $1,496,088 $4,989,833 Q1 $1,080,926 Q2 $1,200,879 $1,301,055 Q3 Cost of sales, including certain buying, occupancy and warehousing expenses Gross profit Selling, general and administrative expenses Impairment, restructuring and other charges 2,548,082 1,487,638 980,610 1,568 2,785,911 1,522,301 1,029,412 2,610,966 1,148,147 3,018,995 1,991,790 667,011 388,026 828,107 370,017 760,810 479,773 988,656 507,432 3,244,585 667,747 747,863 757,258 1,745,248 413,179 453,016 543,797 977,264 1,222,000 298,755 307,832 311,101 351,408 1,269,095 312,345 331,872 361,992 80,494 279,826 11,944 22,209 22,209 21,275 Depreciation and amortization expense 168,331 179,050 162,402 166,781 47,369 48,171 51,124 60,233 206,897 56,728 55,854 56,444 Operating income (loss) Debt related charges Interest (income) expense, net Other (income) expense, net Income (loss) before income taxes Provision (benefit) for income taxes Net income (loss) 337,129 233,345 -271,345 591,065 41,902 14,014 117,548 73,582 247,047 22,831 65,290 125,361 60,066 4,655 64,721 -3,492 -4,479 345,100 -6,202 24,610 34,632 4,588 3,421 3,878 2,409 14,297 690 951 -2,871 -5,731 -3,682 -2,489 -4,444 -1,839 782 -4,964 -10,465 -3,311 -2,150 -3,984 245,278 -292,273 558,922 41,758 -47,634 83,198 $261,902 54,021 $191,257 -82,999 139,293 10,018 -5,168 112,888 31,616 71,482 178,494 25,452 66,489 132,216 -$209,274 $419,629 $31,740 -$42,466 $81,272 16,891 $54,591 53,358 6,999 17,919 35,516 $125,136 $18,453 $48,570 $96,700 Net income (loss) per basic share $1.48 $1.13 Net income (loss) per diluted share (1) $1.47 $1.12 -$1.26 -$1.26 $2.50 $0.19 -$0.24 $0.44 $0.29 $0.69 $0.09 $0.25 $0.50 Weighted average common shares outstanding - basic 176,476 169,711 166,455 $2.03 168,156 $0.16 -$0.24 $0.42 $0.28 $0.64 $0.09 $0.25 $0.49 168,460 180,189 186,305 190,621 181,778 194,487 195,329 195,343 Weighted average common shares outstanding - diluted 178,035 170,867 166,455 206,529 219,742 180,189 195,776 196,893 205,226 197,160 196,103 198,367 Comparable sales (2) (3) 8% 3% Not provided 30% -5% -9% -9% -6% -7% -1% 0% 5% American Eagle brand comparable sales 5% 0% Not provided 35% -7% -10% -10% -9% -9% -4% -2% 2% Aerie brand comparable sales 29% 20% Not provided 27% -2% -6% -3% -2% -3% 2% 0% 12% Total revenue growth (2) 6% 7% 0 33% 2% 0% -3% -1% 0% 2% 0% 5% American Eagle brand revenue growth (4) Not provided 3% -21% 30% -6% -8% -11% -8% -8% -2% -1% 2% Aerie brand revenue growth (4) Not provided 28% 24% 39% 8% 11% 11% 8% 9% 12% 2% 12% Total store count - end of period 1,055 1,095 1,078 1,133 1,141 1,160 1,179 1,175 1,175 1,180 1,184 1,199 Weighted gross square feet - end of period 6,638 6,800 6,739 6,790 7,106 7,144 7,268 7,346 7,237 7,282 7,296 7,333 (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. The Company did not provide comparable sales results for fiscal 2020 due to temporary store closures as a result of COVID-19. (4) Prior to fiscal 2018, the Company did not disclose segment information; therefore, growth compared to the prior year is unavailable for fiscal 2018. AEO INC.#19Historical Operating Income Reconciliation This presentation includes information on non-GAAP financial measures ("non-GAAP" or "adjusted”), including consolidated adjusted operating income. This non-GAAP financial information is not based on any standardized methodology prescribed by U.S. generally accepted accounting principles ("GAAP") and is not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Management believes that this non-GAAP information is useful for an alternate presentation of the company's performance, when reviewed in conjunction with the company's GAAP consolidated financial statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the company's business and operations. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures. Fiscal 2022 Fiscal 2023 (In thousands) 2018 2019 2020 2021 Q1 Q2 Q3 Q4 2022 Q1 (4) Q2 Q3 Operating income (loss) - As reported $337,129 $233,345 -$271,345 $591,065 $41,902 $14,014 $117,548 $73,582 $247,047 $22,831 $65,290 $125,361 % of Revenue 8.4% 5.4% -7.2% 11.8% 4.0% 1.2% 9.5% 4.9% 5.0% 2.1% 5.4% 9.6% Long-lived asset impairment charges (1) 0 66,252 249,163 11,944 0 0 0 20,633 20,633 10,759 0 0 Incremental COVID-19 related expenses (2) 0 0 26,930 0 0 0 0 0 0 0 0 Severance costs 1,568 6,691 3,733 0 0 0 0 1,576 1,576 5,592 0 0 Joint business venture exit charges 0 4,194 0 0 0 0 0 0 0 0 0 0 Japan market transition costs 0 1,814 0 0 0 0 0 0 0 0 0 0 China restructuring (3) 0 1,543 0 0 0 0 0 0 0 0 0 0 Other contract related charges 0 0 0 0 0 0 0 0 0 4,924 0 0 Operating income - Adjusted $338,698 $313,839 $8,481 $603,009 $41,902 $14,014 $117,548 $95,791 $269,256 $44,106 $65,290 $125,361 % of Revenue 8.4% 7.3% 0.2% 12.0% 4.0% 1.2% 9.5% 6.4% 5.4% 4.1% 5.4% 9.6% (1) In fiscal 2022, the Company recorded impairment charges of $20.6 million primarily related to store property and equipment and operating lease ROU assets. In fiscal 2021, the Company recorded impairment charges of $11.9 million primarily related to store property and equipment and operating lease ROU assets. In fiscal 2020, the Company recorded impairment charges of $249.2 million. Included in this amount are retail store impairment charges of $203.2 million, of which $154.8 million relates to operating lease ROU assets and $48.4 million relates to store property and equipment (fixtures and equipment and leasehold improvements). We also recorded $28.0 million related to the impairment of certain corporate property and equipment, as well as $18.0 million of certain cost and equity method investments. In fiscal 2019, the Company recorded asset impairment charges of $64.5 million on the assets of 20 retail stores. Of the total, $39.5 million related to the impairment of leasehold improvements and store fixtures, and $25.0 million related to the impairment of operating lease ROU assets. The Company also concluded that certain goodwill was impaired resulting in a $1.7 million charge in fiscal 2019. (2) Incremental COVID-19 related expenses consisted of personal protective equipment and supplies for our associates and customers. (3) Pre-tax corporate restructuring charges of $1.5 million, primarily consisted of severance and closure costs for our company-owned and operated stores in China recorded in the first quarter of fiscal 2019. (4) Impairment and restructuring charges related to Quiet Platforms for Q1 of 2023. AEO INC.#20REAL Power. REAL Growth. Value Creation Plan AEO INC.#21LING AMERICAN EAGLE M aerie Fueled by optimism, our brands are designed to empower our customers to be their real, authentic selves. OFFLINE by Aerie TODD SNYDER NEW YORK bad#22Customer Centric Omni Channel Retailer With Strong Digital Presence Digital 13% 6-Year CAGR $4.3B $5.0B $5.0B* Same Day Delivery (Pilot) Buy Online, Ship From Store Buy Online, Pick-Up From Store $1.8B $1.7B $4.0B $3.8B $1.3B $3.8B $3.6B $1.1B $1.0B Social Alternative Commerce $0.8B Payment Digital + Stores = COVID IMPACTED $1.7B Options Frictionless, Convenient Shopping $3.1B $3.0B Customer Self-Checkout (Pilot) Popular Mobile App Curbside Pick-Up 3Q23 DIGITAL PENETRATION $2.9B $3.0B $2.8B $2.8B Store To Door $2.1B 2016 2017 2018 2019 2020 2021 2022 DIRECT REVENUE STORES REVENUE *Includes revenue from Quiet Platforms and Other AMERICAN EAGLE ~30% AERIE ~40%#23Value Creation Plan • Grow Aerie to $2 Billion+ in Revenue Drive Sustained Profitable Growth at American Eagle Leverage Customer-Focused Capabilities Strengthen ROI Discipline Power of People, Culture and Purpose AEO INC#24Aerie's Roadmap to $2 Billion+ in Revenue 1 Winning in Intimates & Lounge 2 Activewear Product Extension 3 Market Expansion 4 New Customer Acquisition Drive Sustained Profitable Growth at American Eagle 1 Refresh Brand DNA 2 Complete The Outfit 3 Optimize Inventory 4 Right-Size Store Footprint AEO IN INC.#25AEO INC