PitchSend

AEO Corporate Strategy and Digital Growth

AEO 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business on March 17, 2020 Operating Expenses ■ All operating expenses under ongoing review Guidance ■ FY2020 guidance withdrawn due to current uncertainty Leases Currently in discussions with select landlords to defer rent payment Share Repurchases/ Suspended share repurchase program ■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

View entire presentation