Segment Reporting

3 Months Ended

May 03, 2025

12. 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 CODM’s 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.

Unallocated 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 and restructuring 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 tables:


For the 13 weeks ended May 3, 2025 (In thousands)	American Eagle		Aerie		Other			Intersegment Elimination			Total
Net Revenue	$	693,865	$	359,788	$	43,970		$	(8,024	)	$	1,089,599
Cost of sales, including certain buying, occupancy and warehousing costs		455,896		261,927
Selling, general and administrative expenses		168,329		82,643
Depreciation and amortization		20,168		14,170
Total segment operating income	$	49,472	$	1,048	$	(13,169	)	$	-		$	37,351
Unallocated corporate expenses												(105,413	)
Impairment and restructuring charges (1)											$	(17,119	)
Total operating (loss)												(85,181	)
Interest (income), net												(219	)
Other (income), net												(351	)
(Loss) before income taxes											$	(84,611	)

(1) Refer to Note 13, Impairment and Restructuring Charges, to the Consolidated Financial Statements for additional information.


For the 13 weeks ended May 4, 2024 (In thousands)	American Eagle		Aerie		Other			Intersegment Elimination			Total
Net Revenue	$	724,744	$	372,652	$	54,984		$	(8,513	)	$	1,143,867
Cost of sales, including certain buying, occupancy and warehousing costs		408,388		217,162
Selling, general and administrative expenses		160,195		78,909
Depreciation and amortization		17,576		15,254
Total segment operating income	$	138,585	$	61,327	$	(14,848	)	$	-		$	185,064
Unallocated corporate expenses												(107,228	)
Total operating income												77,836
Interest (income), net												(3,439	)
Other (income), net												(1,396	)
Income before income taxes											$	82,671


	13 Weeks Ended
	May 3,		May 4,
	2025		2024
Capital Expenditures
American Eagle	$	18,933	$	12,634
Aerie	$	17,925	$	11,741
Other	$	10,173	$	2,864
General corporate expenditures	$	14,575	$	8,970
Total Capital Expenditures	$	61,606	$	36,209

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 97% of total net revenue for the 13 weeks ended May 3, 2025.

The following table presents summarized geographical information:


	13 Weeks Ended
(In thousands)	May 3, 2025		May 4, 2024
Total net revenue:
United States	$	921,512	$	952,685
Foreign (1)		168,087		191,182
Total net revenue	$	1,089,599	$	1,143,867

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


	13 Weeks Ended
	May 3,		May 4,
(In thousands)	2025		2024
Long-lived assets, net:
United States	$	2,065,144	$	1,673,059
Foreign		172,155		154,141
Total long-lived assets, net	$	2,237,299	$	1,827,200

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

AMERICAN EAGLE OUTFITTERS INC 10-Q