Segment Reporting

12 Months Ended

Feb. 03, 2024

Segment Reporting [Abstract]

Segment Reporting

15. Segment Reporting

In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company has identified two operating segments (American Eagle brand and Aerie brand) that also represent our reportable segments and reflect the Chief Operating Decision Maker’s (defined as our CEO) internal view of analyzing results and allocating resources. Additionally, our 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, as permitted by ASC 280.

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.

Our CEO analyzes segment results and allocates resources between segments based on the adjusted operating income (loss), or the operating income (loss) in periods where there are no adjustments, of each segment. Adjusted operating income (loss) is a non-GAAP financial measure ("non-GAAP" or "adjusted") that is defined by the Company as operating income excluding impairment, restructuring and other charges. Adjusted operating income (loss) is not based on any standardized methodology prescribed by 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. We believe that this non-GAAP information is useful as an additional means for investors to evaluate our operating performance, when reviewed in conjunction with our GAAP consolidated financial statements and provides a higher degree of transparency.

Reportable segment information is presented in the following table:

	Fiscal Years Ending
	February 3, 2024			January 28, 2023			January 29, 2022
Net Revenue:
American Eagle	$	3,361,579		$	3,262,893		$	3,555,706
Aerie	$	1,670,000		$	1,506,798		$	1,376,269
Total Segment Net Revenue	$	5,031,579		$	4,769,691		$	4,931,975
Other	$	489,056		$	469,371		$	81,951
Intersegment Elimination	$	(258,865	)	$	(249,229	)	$	(3,140	)
Total Net Revenue	$	5,261,770		$	4,989,833		$	5,010,785
Operating Income:
American Eagle	$	599,796		$	541,406		$	795,960
Aerie	$	275,862		$	167,467		$	214,000
Total Segment Operating Income	$	875,658		$	708,873		$	1,009,960
Other	$	(36,124	)	$	(56,793	)	$	(15,996	)
Intersegment Elimination	$	-		$	-		$	-
General corporate expenses	$	(464,172	)	$	(382,824	)	$	(390,955	)
Impairment, restructuring and other charges(1)	$	(152,645	)	$	(22,209	)	$	(11,944	)
Total Operating Income	$	222,717		$	247,047		$	591,065
Debt related charges	$	-		$	64,721		$	-
Interest (income) expense, net	$	(6,190	)	$	14,297		$	34,632
Other (income), net	$	(10,951	)	$	(10,465	)	$	(2,489	)
Income before income taxes	$	239,858		$	178,494		$	558,922
Capital Expenditures
American Eagle	$	61,139		$	85,033		$	47,106
Aerie	$	40,746		$	107,084		$	80,062
Other	$	32,235		$	32,717		$	3,932
General corporate expenditures	$	40,317		$	35,544		$	102,747
Total Capital Expenditures	$	174,437		$	260,378		$	233,847
Depreciation and amortization
American Eagle	$	77,195		$	66,820		$	59,641
Aerie	$	61,249		$	53,921		$	33,834
Other	$	18,874		$	16,067		$	2,023
General corporate depreciation	$	69,548		$	70,089		$	71,284
Total Depreciation and amortization	$	226,866		$	206,897		$	166,781

(1) Refer to Note 16. to the Consolidated Financial Statements for additional information.

We do not allocate assets to the reportable segment level and therefore our CEO does not use segment asset information to make decisions.

Total net revenue for the American Eagle and Aerie reportable segments in the table above represents revenue attributable to each brand's merchandise, which comprises approximately 96% of total net revenue.

The following tables present summarized geographical information:

	Fiscal Years Ending
	February 3,		January 28,		January 29,
(In thousands)	2024		2023		2022
Total net revenue:
United States	$	4,424,345	$	4,268,114	$	4,336,806
Foreign (1)		837,425		721,719		673,979
Total net revenue	$	5,261,770	$	4,989,833	$	5,010,785

(1)Amounts represent sales from American Eagle and Aerie international retail stores, and e-commerce sales that are billed to and/or shipped to foreign countries and international franchise royalty revenue.

	Fiscal Years Ending
	February 3,		January 28,
(In thousands)	2024		2023
Long-lived assets, net:
United States	$	1,521,392	$	2,050,459
Foreign		468,649		177,535
Total long-lived assets, net	$	1,990,041	$	2,227,994