#1AEO INC Second Quarter 2021 Investor Presentation DEB DIY#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 third quarter and fiscal year 2021 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 30, 2021 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 2021 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 and earnings per 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, as it helps identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude in such non-GAAP measures. Accordingly, we believe that adjusted operating income provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to the key financial metrics used by our management in our financial and operational decision-making. AEO INC.#4Unique Brands With Real Customer Connections AMERICAN EAGLE We're an American jeans and apparel brand that's true in everything we do. Rooted in authenticity, powered by positivity, and inspired by our community we welcome all and believe that putting on a really great pair of #AEJEANS gives you the freedom to be true to you. - A Dominant American Brand #1 Jeans Brand - Ages 15-25 #2 Women's Apparel Brand #3 Men's Apparel Brand 2 2 1 16.5 Million Identified Customers 1 NPD 2 Piper Sandler Spring 2021 "Taking Stock With Teens"; Data Reflects % of Surveyed Teens Preferring the Brand#5Unique Brands With Real Customer Connections aerie We make intimates, apparel, activewear and swim. Every single thing is designed to make every person feel good. #Aerie REAL is about power, positivity, and no retouching. We want everyone to feel comfortable inside and out. Let the real you shine™. The Most Exciting Concept In Retail 27 Consecutive Quarters of Double-Digit Growth $65 Billion Addressable Market Opportunity* 9.5 Million Identified Customers *U.S. Market Only; Source: NPD; Category Data T12M Through Dec 2019 (Pre-COVID)#6Customer Centric Omni Channel Retailer With Growing Digital Presence Digital 25% 5-Year CAGR $4.3B Same Day Delivery (Pilot) Buy Online, Ship From Store Buy Online, Pick-Up From Store $4.0B $3.8B $1.3B $3.8B $3.6B $3.5B $1.1B $1.0B $0.6B Alternative Payment Social Commerce $0.8B COVID IMPACTED $1.7B Digital + Stores Options Frictionless, Convenient Shopping Customer Self-Checkout (Pilot) Popular Mobile App Curbside Pick-Up Q2 DIGITAL PENETRATION $2.9B $2.9B $3.0B $2.8B $2.8B Store To Door $2.1B 2015 2016 2017 2018 2019 2020 DIRECT REVENUE STORES REVENUE AMERICAN EAGLE ~30% AERIE >50%#7Second Quarter 2021 Financial Results All-time High Second Quarter Revenue and Operating Income Reflecting Strength Across Brands and Great Progress on our "Real Power. Real Growth." Value Creation Plan AEO INC#8"It's extremely gratifying to see significant growth across our business, as we delivered another quarter of record revenue and profitability. Results underscore the strength of our brands, outstanding product and a leading customer experience across selling channels. We are running our business with a laser focus on profitability through inventory and real-estate optimization initiatives and investments to enhance our supply chain. Led by an expanding customer file, Aerie is achieving consistent, robust multi-year growth and very strong profit flow through. American Eagle posted meaningful top-and bottom-line increases with significant unlock still ahead. Our Real Power. Real Growth. plan has been a guiding light for all facets of the business, positioning us to successfully navigate a dynamic macro environment. Despite external challenges, I believe we are on path to achieve $600 million in operating income this year, well ahead of our previous target." Jay Schottenstein AEO's Executive Chairman of the Board and Chief Executive Officer.#9Key Highlights (unaudited) SECOND QUARTER 2021 2020 TOTAL NET REVENUE CHANGE 35% (15)% GROSS MARGIN 42.1% 30.0% SELLING, GENERAL & ADMINISTRATIVE EXPENSES 24.6% 25.3% ADJUSTED OPERATING MARGIN (1) 14.1% 0.3% ADJUSTED EPS(1) $0.60 $0.00 (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. DER VALLEY Inventory Data (unaudited) (in thousands) ENDING INVENTORY ENDING INVENTORY % CHANGE TO 2020 QUARTERLY INVENTORY TURN(1) July 31, 2021 August 1, 2020 $503,507 $421,196 20% -21% 1.43 1.47 (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.#10Net Revenue Total Company Net Revenue Up 35%; Store Revenue Up 73%; Digital Demand Up 9% AMERICAN EAGLE $625MM $846MM AERIE $336MM $252MM TOTAL AEO $884MM $1,194MM 2Q20 2Q21 2Q20 AMERICAN EAGLE $846MM Net Revenue Up 35% AERIE $336MM 2Q21 2Q20 Net Revenue Up 34% 2Q21 TOTAL AEO $1,194MM Net Revenue Up 35% AEO INC.#11Operating Income Total Company Operating Income Reached All-Time High of $168 million. AMERICAN EAGLE Operating Margin 23.5% $60MM $199MM AERIE Operating Margin 21.0% $30MM CORPORATE1 -$102MM -$88MM* $71MM TOTAL AEO Operating Margin 14.1% $168MM $2MM** 2Q21 2Q20 CORPORATE -$102MM 2Q20 2Q21 2Q20 2Q21 2Q20 AMERICAN EAGLE $199MM Operating Income Up 234% Operating Income Up 132% AERIE $71MM Corporate Expense Up 16% *Adjusted to exclude restructuring & Covid-19 related expenses. (1) Corporate includes operating results of the Todd Snyder and Unsubscribed brands, which are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. 2Q21 TOTAL AEO $168MM Record Operating Income Highest Operating Margin Since 2008 **Adjusted operating income AEO INC.#12Results by Segment (Dollars In Thousands) (unaudited) 13 Weeks Ended July 31, 2021 Total net revenue American Eagle Aerie Corporate (1) Total(2) Capital Expenditures Operating income (loss) 13 Weeks Ended August 1, 2020 SSS $ 845,882 $ 335,795 $ $ 198,896 $ 70,646 $ $ 17,189 $ 16,641 $ 12,479 $ (101,546) $ 15,569 1,194,156 167,996 $ 49,399 American Eagle Aerie Corporate (1) Total(2) Total net revenue $ Operating income (loss) Impairment, restructuring, and COVID-19 related charges Adjusted operating income (loss) Capital Expenditures 26 Weeks Ended July 31, 2021 Total net revenue Operating income (loss) Capital Expenditures 26 Weeks Ended August 1, 2020 SSSSS 624,831 $ 251,511 $ 59,603 $ 30,404 $ $ $ 59,603 $ 6,774 $ 30,404 8,620 SSSSS 7,168 $ (102,244) $ 14,611 $ (87,633) $ 12,098 SASSASS $ 883,510 $ (12,237) $ 14,611 2,374 27,492 American Eagle Aerie Corporate (1) Total(2) SSS 1,573,584 $ 633,282 $ 21,903 350,128 $ 30,628 $ 140,624 $ (189,328) 27,460 $ 28,117 SASASA 2,228,769 301,424 86,205 American Eagle Aerie Corporate (1) Total(2) Total net revenue $ Operating income (loss) Impairment, restructuring, and COVID-19 related charges Adjusted operating income (loss) Capital Expenditures SSSSS 1,015,081 $ 406,492 $ 13,629 $ (154,146) $ 11,275 $ (227,607) $ 90,926 $ 18,215 $ 61,090 $ $ (63,220) $ 14,873 $ 29,490 17,408 $ (166,517) 29,121 SSSSS 1,435,202 (370,478) 170,231 $ (200,247) 61,402 (1) Corporate includes revenue and operating results of the Todd Snyder and Unsubscribed brands, which are not material to disclose as separate reportable segments. Corporate operating costs represents certain costs that are not directly attributable to another reportable segment. (2) The difference between Total Operating Income (loss) and Income (loss) before Taxes includes the following items, which are not allocated to our reportable segments: • For the 13 weeks ended July 31, 2021, interest expense, net or $8.9 million and other (income) expense, net of ($1.4) million. For the 26 weeks ended July 31, 2021, interest expense, net of $17.4 million and other (income) expense, net of ($3.2) million. •For the 13 weeks ended August 1, 2020, interest expense, net of $8.5 million and other (income) expense, net of ($1.6) million. For the 26 weeks ended August 1, 2020, interest expense, net of $8.7 million and other\ (income) expense, net of $1.4 million. AEO INC.#13Statements of Operations Summary-GAAP Basis (unaudited) 13 Weeks Ended July 31, 2021 % of Revenue August 1, 2020 % of Revenue Total net revenue $ 1,194,156 100.0% 883,510 100.0% Cost of sales, including certain buying, occupancy and warehousing expenses 691,765 57.9% 618,311 70.0% Gross profit 502,391 42.1% 265,199 30.0% Selling, general and administrative expenses 293,939 24.6% 223,711 25.3% Impairment, restructuring and COVID-19 related charges 0.0% 14,611 1.7% Depreciation and amortization expense 40,456 3.4% 39,114 4.4% Operating income (loss) 167,996 14.1% (12,237) -1.4% Interest expense (income), net Other (income) expense, net Income (Loss) before income taxes Provision (Benefit) from income taxes Net income (loss) Net income (loss) per basic share 8,921 0.8% 8,547 1.0% (1,363) -0.1% (1,554) -0.2% 160,438 13.4% (19,230) -2.2% 38,927 3.2% (5,478) -0.6% SA Net income (loss) per diluted share SA SA 121,511 0.73 10.2% SA (13,752) -1.6% (0.08) 0.58 $ (0.08) Weighted average common shares outstanding - basic 167,491 166,315 Weighted average common shares outstanding - diluted 208,933 166,315 AEO INC.#14GAAP to NON-GAAP Reconciliation Statements of Operations (unaudited) Diluted Earnings per 13 Weeks Ended | July 31, 2021 (In thousands, except per share amounts) Interest Expense, net Net Income Common Share GAAP Basis % of Revenue Less: Convertible debt (1): Non-GAAP Basis % of Revenue (1) Amortization of the non-cash discount on the Company's convertible notes 8,921 121,511 $ 0.8% 10.2% 4,956 3,754 3,965 0.3% 125,265 10.5% 0.58 0.02 0.60 13 Weeks Ended | August 1, 2020 (In thousands, except per share amounts) Operating (Loss) Income Interest Expense, net Net (Loss) Income GAAP Basis % of Revenue (12,237) $ -1.4% 8,547 (13,752) $ 1.0% (1): 14,611 Less: Convertible debt (2): Diluted Earnings per Common Share (0.08) -1.6% 10,447 0.05 3,949 2,826 0.03 2,374 $ 4,598 $ (479) $ (0.00) 0.3% 0.5% -0.1% Non-GAAP Basis $ % of Revenue (1) $14.6 million incremental COVID-19 related expenses and restructuring charges: - $13.9 million of incremental COVID-19 related expenses consisting of personal protective equipment and supplies for our associates and customers - $0.7 million of corporate severance charges (2) Amortization of the non-cash discount on the Company's convertible notes ALO INC.#15REAL Power. REAL Growth. Value Creation Plan AEOI INC.#16Value Creation Plan Double Aerie to $2 Billion in Revenue Reignite American Eagle for Profit Growth Leverage Customer-Focused Capabilities Strengthen ROI Discipline Power of People, Culture and Purpose AGRICAN GAGLE AEO INC.#17Aerie's Roadmap to $2 Billion in Revenue 1 Winning in Intimates & Lounge 2 Activewear Product Extension 3 Market Expansion 4. New Customer Acquisition Reignite American Eagle for Profit Growth 1 Refresh Brand DNA 2 Complete The Outfit 3 Optimize Inventory 4 Right-Size Store Footprint AEO INC.#18Drivers of Operating Margin Improvement + Aerie Growth Leverage Inventory Optimization Right-Sized Store Fleet Delivery & Distribution Product Mix#19Liquidity and Capital Allocation#202Q21 LIQUIDITY $824M $1,176M* Cash & Short-term Total Available Investments Liquidity *Includes $352 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 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 SECOND QUARTER ENDED July 31, 2021 August 1, 2020 YTD SECOND QUARTER ENDED July 31, 2021 August 1, 2020 $0.0 0.0 $0.0 0.0 $0.0 0.0 $20.0 1.7 $30.3 $0.0 $53.2 $0.0 $0.180 $0.000 $0.318 $0.000 $30.3 $0.0 $53.2 $20.0 AEO INC.#21Balance Sheet Summary (unaudited) ASSETS (In thousands) Cash and cash equivalents Short-term investments Merchandise inventory Accounts receivable Prepaid expenses and other Total current assets Property and equipment, net Operating lease right-of-use assets Intangible assets, including goodwill Non-current deferred income taxes Other assets Total Assets 773,994 July 31, 2021 January 30, 2021 August 1, 2020 $ 850,477 $ 898,787 50,000 503,507 405,445 421,196 155,361 146,102 107,243 118,721 120,619 155,141 1,601,583 1,522,643 1,582,367 641,396 623,808 659,351 1,155,965 1,271,491 70,620 70,332 51,432 46,600 33,045 30,224 31,576 29,013 33,111 $ 3,495,022 3,434,806 3,627,976 1,103,247 LIABILITY & STOCKHOLDERS EQUITY (In thousands) July 31, 2021 January 30, 2021 August 1, 2020 Accounts payable Current portion of operating lease liabilities Accrued compensation and payroll taxes Other current liabilities and accrued expenses Unredeemed gift cards and gift certificates Accrued income taxes and other Dividends payable 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 $ 221,471 255,912 $ 295,296 288,534 328,624 348,921 133,185 142,272 66,131 56,568 55,343 51,281 44,095 62,181 43,165 25,365 14,150 12,783 22,837 769,218 1,094,386 858,482 840,414 1,148,742 1,253,105 331,680 24,207 325,290 516,953 15,627 1,450,273 1,489,659 19,604 1,789,662 Common stock Contributed capital Accumulated other comprehensive loss Retained earnings Treasury stock 2,496 2,496 630,506 663,718 (36,894) (40,748) 2,058,448 1,868,613 2,496 647,284 (47,991) 1,807,687 (1,407,414) (1,411,576) 1,086,665 997,900 $ 3,434,806 $ 3,627,976 (1,379,025) Total stockholders' equity 1,275,531 Total Liabilities and Stockholders' Equity $ 3,495,022 Current Ratio 2.08 1.77 1.88 AEO INC.#22Real Estate Highlights INC.#23YTD Q2 Real Estate Summary (unaudited) Consolidated stores at beginning of period 1,078 International licensed locations at end of period (3) 242 Consolidated stores opened during the period Aerie Openings AE BRAND 11 Aerie stand-alone (1) Aerie stand-alone (1) 18 Total Aerie side-by-side (2) Unsubscribed 1 1 Total Aerie Openings 18 5 23 Todd Snyder Consolidated stores closed during the period AE BRAND Aerie stand-alone Consolidated stores at end of period AE BRAND Aerie stand-alone (1) Aerie side-by-side (2) Unsubscribed Todd Snyder Stores remodeled & refurbished during the period Total gross square footage at end of period [In Thousands] (18) (1) (1) Aerie stand-alone stores include 1 OFFLINE opening during the period and 5 OFFLINE stores in the consolidated totals 1,090 (2) Aerie side-by-side and Offline side-by-side stores are included in the AE Brand store count as they are considered part of the AE Brand store to which they are attached. 894 191 (3) International license locations are not included in the consolidated store data or the total gross square footage calculation. 183 2 3 11 6,799 AEO INC.#24International Licensed Store Locations (unaudited) Israel India Saudi Arabia/KSA Colombia UAE Philippines Greece Chile Kuwait Thailand Egypt Qatar Spain Bahrain Oman Costa Rica Panama Guatemala Jordan Paraguay Q2 Ending Licensed Stores Country Andorra Curacao Czech Republic Dominican Republic El Salvador Hungary Peru Portugal Switzerland Lebanon South Korea Total Q2 Store Openings Q2 2021 Q2 2020 Country Q2 2021 48 48 11 9 9 8 frar5, 34332T, T 4 4 3 3 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 222221700065++MEND 17 Greece India 27 Jordan 17 Kuwait 21 Philippines 11 9 10 *Note there are 4 additional countries that are e-comm operations only 7 9 7 7 242 220 2 1 1 1 AEO INC.#25N Full Real Estate Summary (unaudited) Ending January 31, 2021 Q1 2021 Open as of Q2 2021 Open as of Openings Closings May 1, 2021 Openings Closings July 31, 2021 AE Mainline Stores 725 2 (14) US Canada 613 (13) 713 600 65 (1) 64 Mexico 39 2 41 Hong Kong 8 8 522- (4) 714 (3) 599 (1) 63 43 1 9 Factory Stores 176 2 178 2 179 US 160 161 1 162 Canada 11 11 1 12 Mexico 4 5 I 25 Hong Kong 1 1 Total AE 901 4 (14) 891 7 (4) 894 US Stand alone 155 6 (1) 160 Canada Stand alone 17 17 Mexico Stand alone 2 2 Total aerie*** 174 6 (1) 179 12 Todd Snyder Unsubscribed Total Company aerie Side by Side** US Side by Side Canada Side by Side Mexico Side by Side Hong Kong Side by Side 21 1,078 1 11 (15) 1,074 178 (1) 178 143 (1) 142 16 20 16 20 2 1 2 2 7521 167 17 7 191 3 2 20 O (4) 1,090 52 183 144 16 22 1 **Aerie side-by-side stores are NOT counted as a separate store as they are part of AE Mainline or Factory stores. *** Aerie stores include Offline stores AEO INC.