#1AEO INC. FIRST QUARTER 2023 Investor Presentation BUN NE OFF#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 second quarter and fiscal year 2023 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 negative impacts of the COVID-19 pandemic and related operational disruptions; 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.#3Non-GAAP Measures This presentation includes information on non-GAAP financial measures ("non-GAAP" or "adjusted"), including consolidated adjusted operating income, net income and net income per diluted share, excluding non-GAAP items. These financial measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles ("GAAP") and are 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 our business and operations. The tables included in this presentation reconcile the GAAP financial measures to the non-GAAP financial measures discussed above. AEO INC#4First Quarter Fiscal 2023 Results Record first quarter revenue, up 2% to last year. Adjusted operating profit of $44 million, up to last year. Aerie posted all-time high first quarter revenue and profitability with positive comp growth. American Eagle continued to see a sequential improvement in revenue trends with year-over-year growth in operating income. AEO INC.#5"We entered 2023 with a cautious plan, balancing continued optimism for our brands with the flexibility to navigate uncertainty in the macro environment. I am pleased to note that this strategy delivered for us, as we successfully managed through the first quarter and achieved results in-line with plan. Both Aerie and American Eagle saw solid improvement during the quarter and maintained strength in their categories," commented Jay Schottenstein, AEO's Executive Chairman of the Board and Chief Executive Officer. "With ongoing macro challenges, we are maintaining a clear focus on inventory discipline, cost savings and efficiencies across the business. Looking forward, our priority is to rebuild operating margins, while also seeking opportunities for profitable growth and to deliver more consistent shareholder returns." Jay Schottenstein AEO's Executive Chairman of the Board and Chief Executive Officer AEO INC.#6Key Highlights (unaudited) FIRST QUARTER TOTAL NET REVENUE CHANGE GROSS MARGIN SELLING, GENERAL & ADMINISTRATIVE EXPENSES ADJUSTED OPERATING MARGIN (1) ADJUSTED EPS (1) 2023 2022 2% 2% 38.2% 36.8% 28.9% 28.3% 4.1% 4.0% $0.17 $0.16 (1) Results shown are on a non-GAAP basis and exclude certain charges for all periods presented. See accompanying tables for a reconciliation of GAAP to non-GAAP results. Inventory Data (unaudited) (in thousands) April 29, 2023 April 30, 2022 ENDING INVENTORY $624,851 $682,100 ENDING INVENTORY % CHANGE TO PRIOR YEAR -8% 46% QUARTERLY INVENTORY RETURN(1) 1.10 1.08 (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.#7First Quarter Net Revenue Total Company Revenue Up 2%; Stores Revenue Up 5%; Digital Revenue Down 4% AMERICAN EAGLE $686M $671M 1Q22 1Q23 AERIE $359M $322M 1Q22 1Q23 TOTAL AEO $1081M $1055M 1Q22 1Q23 Net Revenue Down 2% YOY Net Revenue Up 12% YOY Net Revenue Up 2% YOY AEO INC.#8First Quarter Operating Income Total Company Adjusted Operating Income of $44M AMERICAN EAGLE Operating Margin 16.0% $104M $107M AERIE Operating Margin 15.8% CORPORATE AND OTHER¹ -$120M -$105M $57M $43M TOTAL AEO Adjusted Operating Margin 4.1% $44M $42M 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 (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.#9Outlook For the second quarter, management's outlook reflects revenue in the range of flat to down low-single digits to last year with operating income in the range of $25 to $35 million. This assumes gross margin recovery year-over-year as the company cycles pressure from end of season sell-offs and elevated freight costs. SG&A is expected to increase in the low-to-mid-single digit range. Depreciation is expected to be similar to the first quarter. For the year, management expects revenue in the range of flat to down low-single digits to last year with operating income in the range of $250 to $270 million. Full-year capital expenditures are expected to be in the range of $150 to $175 million. AEOING INC.#10Results by Segment (Dollars in Thousands) (unaudited) Corporate and Other (1) 13 weeks ended April 29, 2023 Total net revenue American Eagle Aerie Total Operating income (loss) Impairment, restructuring and other charges Adjusted operating income (loss) % of revenue SASASA $ 671,092 $ $ 107,167 $ 359,082 $ 56,604 $ 50,752 $ 1,080,926 (140,940) $ 22,831 $ $ $ 21,275 $ 21,275 $ 107,167 $ 56,604 $ (119,665) $ 44,106 16.0% 15.8% 4.1% Capital expenditures $ 14,943 69 $ 11,188 69 $ 19,726 $ 45,857 13 weeks ended April 30, 2022 American Eagle Aerie Corporate and Other (1) Total Total net revenue Operating income (loss) 559 $ $ 685,579 103,905 $ $ % of revenue 15.2% Capital expenditures 69 $ 15,770 $ 321,712 43,073 $ 13.4% 31,015 $ 47,746 $ (105,076) $ 1,055,037 41,902 4.0% 11,609 $ 58,394 (1) Corporate and Other includes revenue and operating results of the Todd Snyder brand, Unsubscribed brand, and Quiet Platforms (net of intersegment eliminations), which have been identified as separate operating segments, but are not material to disclose as separate reportable segments. Corporate operating costs represent certain costs that are not directly attributable to another reportable segment. AEO INC.#11Statement 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 Impairment, restructuring and other charges Depreciation and amortization expense Operating income Interest expense, net Other income, net Income before income taxes Provision for income taxes April 29, 2023 % of Revenue April 30, 2022 % of Revenue $ 1,080,926 100.0% $ 1,055,037 100.0% 667,747 61.8% 667,011 63.2% 413,179 38.2% 388,026 36.8% 312,345 28.9% 298,755 28.3% 21,275 2.0% 0.0% 56,728 5.2% 47,369 4.5% 22,831 2.1% 41,902 4.0% 690 0.1% 4,588 0.4% (3,311) -0.3% (4,444) -0.4% 25,452 2.3% 41,758 4.0% 6,999 0.6% 10,018 1.0% Net income $ 18,453 1.7% $ 31,740 3.0% Net income per basic share Net income per diluted share $ 559 0.09 $ 0.19 0.09 $ 0.16 Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted 194,487 168,460 197,160 219,742 AEO INC.#12GAAP to Non-GAAP Reconciliation 13 Weeks Ended April 29, 2023 (In thousands, except per share amounts) GAAP Basis % of Revenue Add: Impairment, restructuring and other charges (1) Non-GAAP Basis % of Revenue Diluted earnings per Operating income Net income common share 22,831 18,453 0.09 2.1% 1.7% 21,275 15,424 0.08 44,106 4.1% 33,877 3.1% 0.17 (1) $21.3 million pre-tax impairment, restructuring and other charges related to Quiet Platforms as the Company repositions for improved profitability including: - $10.8 million of long-lived asset impairment charges. - $5.6 million of employee related costs - $4.9 million of other commercial related charges AEO INC.#13Liquidity and Capital Allocation A CRICAN AEO INC#141Q23 LIQUIDITY $118M $659M* Cash & Cash Equivalents Total Available Liquidity Capital Allocation Priorities 1 Investments to Fuel Aerie's Growth & Build Capabilities 2 Preserving Balance Sheet Strength Direct Shareholder Returns through a combination of dividends and share repurchases *Includes $542 in net credit available 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 FIRST QUARTER ENDED April 29, 2023 April 30, 2022 $ 69 $ $ $ 5959 19.6 $ 0.100 $ 30.4 0.180 $ 19.6 $ 30.4 AEO INC.#15Balance Sheet Summary (unaudited) ASSETS (In thousands) Cash and cash equivalents Merchandise inventory Accounts receivable, net Prepaid expenses and other Total current assets Operating lease right-of-use assets Property and equipment, at cost, net of accumulated depreciation Goodwill Intangible assets, net Non-current deferred income taxes Other assets Total assets LIABILITIES & STOCKHOLDERS EQUITY (In thousands) Accounts payable Current portion of operating lease liabilities Unredeemed gift cards and gift certificates Accrued compensation and payroll taxes Accrued income taxes and other Other current liabilities and accrued expenses Total current liabilities Non-current operating lease liabilities Long-term debt, net Other non-current liabilities Total non-current liabilities Commitments and contingencies Preferred stock April 29, 2023 January 28, 2023 April 30, 2022 $ 117,841 170,209 $ 228,775 624,851 585,083 682,100 259,074 242,386 230,469 127,735 102,563 139,195 1,129,501 1,100,241 1,280,539 1,053,938 1,086,999 1,210,169 762,433 781,514 745,165 264,896 264,945 271,398 92,399 94,536 100,679 13,034 36,483 42,977 $ 57,693 3,373,894 56,238 50,591 $ 3,420,956 $ 3,701,518 $ April 29, 2023 212,318 321,430 January 28, 2023 April 30, 2022 $ 234,340 $ 236,376 337,258 317,844 57,014 67,618 59,256 43,550 51,912 34,469 13,812 10,919 15,550 68,313 66,901 73,984 716,437 768,948 737,479 987,048 1,021,200 1,150,951 30,225 21,168 1,038,441 8,911 22,734 1,052,845 405,807 24,275 1,581,033 Common stock 2,496 2,496 2,496 Contributed capital Accumulated other comprehensive loss Retained earnings Treasury stock 324,396 341,775 562,973 (26,777) (32,630) (40,315) 2,130,108 2,137,126 2,224,113 (811,207) (849,604) (1,366,261) Total stockholders' equity 1,619,016 1,599,163 1,383,006 Total Liabilities and Stockholders' Equity $ 3,373,894 $ 3,420,956 $ 3,701,518 Current ratio 1.58 1.43 1.74 AEO INC#16Real Estate Highlights AEO INC.#171Q Real Estate Summary (unaudited) Consolidated stores at beginning of period. Consolidated stores opened during the period AE BRAND (2) Aerie (incl. OFFL/NE) (3) Todd Snyder Consolidated stores closed during the period AE BRAND (2) 1,175 4 121 (2) Consolidated stores at end of period 1,180 AE BRAND (2) Aerie stand-alone (incl. OFFL/NE)(3) 867 297 Todd Snyder Unsubscribed 11 5 Total gross square footage at end of period [In Thousands] 7,273 International licensed locations at end of period (1) 280 (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, OFFLINE stand alone locations, and Aerie/OFFL/NE side-by-side locations. AEO INC#18Historical Quarterly Store Data by Brand (unaudited) STORE COUNTS SQFT BY BRAND AE SA Aerie SA Off/ine SA AE/ Aerie SBS 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 Gross Square Feet End Store Count AE/Off/ine SBS Weighted AE / Aerie / Off/ine SBSBS Aerie / Off/ine SBS Weighted Gross Square Feet Weighted Gross Square Feet End Store Count FY2019 1Q19 785 4,875,024 119 446,170 151 1,172,404 2Q19 781 4,982,495 131 470,538 158 1,363,891 3Q19 775 4,914,297 142 510,574 170 1,479,306 4Q19 766 4,857,895 148 546,624 174 1,515,532 End Store Count Total Stores (1) Weighted Gross Square Feet AE Weighted Aerie & Offline Gross Square Feet Weighted Gross Square Feet 1,061 6,511,508 1,075 6,830,468 1,094 6,918,661 1,095 6,935,991 1Q19 5,757,522 2Q19 6,022,181 3Q19 6,044,236 4Q19 5,991,896 748,807 803,108 868,675 937,916 FY2020 1Q20 767 4,852,895 148 560,190 2Q20 760 4,800,204 160 576,479 3Q20 758 4,795,476 166 4Q20 722 4,571,986 171 619,454 651,258 1 4 275 9,051 175 1,539,215 175 1,545,014 177 178 1,554,830 1,566,771 1 7,060 1,093 6,958,479 1,098 6,927,876 1,105 6,978,215 1,078 6,814,668 1Q20 5,998,426 2Q20 5,949,580 3Q20 5,951,599 4Q20 5,740,150 953,873 971,609 1,019,337 1,067,239 FY2021 1Q21 713 4,524,654 174 667,658 2Q21 711 4,505,846 186 704,611 3Q21 716 4,530,387 203 4Q21 695 4,404,621 212 749,207 819,078 5582 10,898 177 1,595,290 1 7,423 13,608 182 1,622,470 1 7,423 15,289 181 1,628,785 1 7,423 5 42,670 181 1,624,673 2 13,240 2 32,982 12 17,998 54,792 1,074 6,814,239 1,090 6,865,434 1,121 6,961,748 1,133 7,001,905 1Q21 5,702,752 2Q21 5,709,478 3Q21 5,735,321 4Q21 5,620,294 1,103,207 1,144,492 1,213,811 1,361,398 FY2022 1Q22 689 4,376,087 217 851,913 2Q22 686 4,360,553 224 878,365 31 3Q22 685 4,359,004 233 4Q22 673 4,355,839 233 903,525 935,244 2333 19 56,185 185 1,639,209 34 74,868 96,075 104,052 183 186 1,629,930 1,648,257 186 1,650,545 2222 16,236 16,236 16,236 16,236 2334 82280 38,190 18 124,486 38,500 21 138,152 41,323 54,273 26 175,466 193,254 1,141 7,105,875 1,160 7,144,146 1,179 7,268,188 1,175 7,346,365 1Q22 5,619,427 2Q22 5,573,736 3Q22 5,603,096 4Q22 5,607,958 1,464,808 1,544,487 1,636,790 1,701,486 FY2023 1Q23 674 4,267,335 234 930,288 34 34 104,783 186 1,654,391 2 16,236 5 58,889 29 29 207,553 1,180 7,281,914 1Q23 5,522,450 1,717,024 (1) Total Stores includes Todd Snyder and Unsubscribed AEO INC.#19AE North America Store Footprint Closed 83 stores since FY19, reflecting a 9% reduction in square footage NORTH AMERICAN STORES FY19 FY20 FY21 931 FY22 1Q23 892 867 846 848 Weighted Average Square Footage* FY19 5,984 FY20 5,904 FY21 FY22 1Q23 5,692 5,562 5,448 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. OBX POGUES ONLY AEO INC#20Historical Financials AEO INC#21Historical Financial Information Information - GAAP GAAP Basis (In thousands, except per share amounts and store counts) 2021 Fiscal 2022 Total net revenue Cost of sales, including certain buying, occupancy and warehousing expenses Gross profit Selling, general and administrative expenses Impairment, restructuring and COVID-19 related charges Depreciation and amortization expense 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) Net income (loss) per basic share Net income (loss) per diluted share (1) Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted Comparable sales (2) (3) American Eagle brand comparable sales Aerie brand comparable sales Total revenue growth (2) American Eagle brand revenue growth (4) Aerie brand revenue growth (4) Total store count - end of period Weighted gross square feet - end of period Fiscal 2023 2018 2019 2020 Q1 Q2 Q3 Q4 2022 Q1 $ 4,035,720 $ 4,308,212 $ 3,759,113 $ 5,010,785 $ 1,055,037 $ 1,198,124 $ 1,240,583 $1,496,088 $ 4,989,833 $1,080,926 2,548,082 1,487,638 980,610 1,568 168,331 337,129 2,785,911 1,522,301 1,029,412 2,610,966 1,148,147 977,264 3,018,995 667,011 828,107 760,810 1,991,790 388,026 370,017 479,773 988,656 507,432 3,244,585 1,745,248 667,747 413,179 1,222,000 298,755 307,832 311,101 351,408 1,269,095 312,345 80,494 179,050 233,345 279,826 11,944 22,209 22,209 21,275 162,402 166,781 47,369 48,171 51,124 60,233 206,897 56,728 (271,345) 591,065 41,902 14,014 117,548 73,582 247,047 22,831 60,066 4,655 64,721 (3,492) (6,202) 24,610 34,632 4,588 3,421 3,878 2,409 14,297 690 (4,479) (5,731) (3,682) (2,489) (4,444) (1,839) 782 (4,964) (10,465) (3,311) 345,100 83,198 245,278 54,021 (292,273) 558,922 41,758 (47,634) 112,888 71,482 178,494 25,452 (82,999) 139,293 10,018 (5,168) 31,616 16,891 53,358 6,999 $ 261,902 $ 191,257 $ (209,274) $ 419,629 $ 31,740 $ (42,466) $ 81,272 $ 54,591 $ 125,136 $ 18,453 1.48 $ $ 1.47 $ 1.13 1.12 $ $ (1.26) $ 2.50 $ (1.26) $ 2.03 $ 0.19 $ 0.16 $ (0.24) $ 0.44 $ (0.24) $ 0.42 $ 0.29 0.28 $ $ 0.69 $ 0.64 $ 0.09 0.09 176,476 169,711 166,455 168,156 168,460 180,189 186,305 190,621 181,778 194,487 178,035 170,867 166,455 206,529 219,742 180,189 195,776 196,893 205,226 197,160 8% 3% Not provided 30% -5% -9% -9% -6% -7% -1% 5% 0% Not provided 35% -7% -10% -10% -9% -9% -4% 29% 20% Not provided 27% -2% -6% -3% -2% -3% 2% 6% 7% -13% 33% 2% 0% -3% -1% 0% 2% Not provided 3% -21% 30% -6% -8% -11% -8% -8% -2% Not provided 28% 24% 39% 8% 11% 11% 8% 9% 12% 1,055 6,638 1,095 1,078 1,133 1,141 1,160 1,179 1,175 1,175 1,180 6,800 6,739 6,790 7,106 7,144 7,268 7,346 7,237 7,282 (1) (2) (3) (4) 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. Comparable sales includes results from Todd Snyder and Unsubscribed brands. Total revenue growth includes results from Todd Snyder and Unsubscribed brands and Quiet Platforms. 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. 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.#22Historical Operating Income Reconciliation (In thousands) Operating income (loss) - As reported % of Revenue Long-lived asset impairment charges (1) Incremental COVID-19 related expenses (2) Severance and related employee costs Joint business venture exit charges Japan market transition costs China restructuring (3) Other commercial related charges Operating income - Adjusted % of Revenue Fiscal 2022 Fiscal 2023 2020 (4) 2021 (4) Q1 Q2 (5) Q3 Q4 (5) 2022 (5) Q1 (6) $ (271,345) $ 591,065 -7.2% 11.8% $ 41.902 $ 4.0% 14.014 1.2% $ 117,548 9.5% $ 73,582 4.9% $ 247,047 $ 22,831 5.0% 2.1% 20,633 20,633 10,759 2018 $ 337,129 8.4% 2019 $ 233,345 5.4% 66,252 249,163 26,930 11,944 1,568 6,691 3.733 4,194 1,814 1,543 1,576 1,576 5,592 4,924 $ 338,698 8.4% $ 313,839 $ 7.3% 8,481 0.2% $ 603,009 12.0% $ 41,902 $ 4.0% 14,014 1.2% $ 117,548 $ 9.5% 95,791 6.4% $ 269,256 $ 5.4% 44,106 4.1% (1) (2) (3) 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. Incremental COVID-19 related expenses consisted of personal protective equipment and supplies for our associates and customers. 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) GAAP results for fiscal 2020 and 2021 included the amortization of the non-cash discount on the 2025 Notes, which was recorded below Operating income (loss) prior to the adoption of ASU 2020-06. (5) (6) GAAP results for Q2 2022 of $60.1 million, Q4 2022 of $4.7 million, and YTD 2022 included $64.7 million of pre-tax debt related charges related primarily to the induced conversion expense relating to the Note Exchange, along with certain other costs related to actions taken to strengthen our capital structure, which was recorded below Operating income (loss). GAAP results for Q1 2023 included impairment, restructuring and other charges related to Quiet Platforms as the Company repositions the business for improved profitability. AEO IN#23REAL Power, REAL Growth. Value Creation Plan EXXY AEO INC#24AMERICAN EAGLE 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 unsubscribed#25Customer 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 1Q23 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 ~45%#26Value 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#27Aerie'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.#28Y EVERY DAY AEO INC.