On this page of StockholderLetter.com we present the latest annual shareholder letter from AMERICAN EAGLE OUTFITTERS INC — ticker symbol AEO. Reading current and past AEO letters to shareholders can bring important insights into the investment thesis.
ANNUAL RE POR T 2024
American Eagle is a youth culture brand grounded in denim. Our purpose extends beyond making the best jeans we embrace self expression, culture, optimism and connection. All are welcome at AE. We empower our community to be who they want to be, so everyone can get out there and Live Your Life. Aerie offers the comfiest intimates, apparel, swim and accessories made to wear in and out. Aerie Real stands for inclusivity and real representation. We celebrate our community by advocating for power, positivity and no retouching. Always & forever REAL
May 15, 2025 Dear Fellow Stockholders: Fiscal 2024 was a positive year for AEO, fueled by our strong brand portfolio and the strength and determination of our amazing associates. Revenue hit an all-time high, and we achieved meaningful profit expansion. In March 2024, we introduced our three-year growth strategy, Powering Profitable Growth, which aims to focus the organization on three key priorities: Amplify our Brands; Execute with Financial Discipline; and Optimize our Operations We achieved excellent results in the first year of the three-year plan. Revenue hit $5.3 billion and adjusted operating income(1) increased 19% year over year, marking one of the strongest fiscal years in our history. This contributed to significant operating margin expansion, in line with our long-term vision for driving structural improvements across the business. Within our Amplify pillar, both American Eagle and Aerie continued to resonate strongly with customers. Across brands, we expanded our customer base and delivered positive comparable sales growth. We also continued to Optimize our Operations, making strategic investments in our store fleet and digital platform. This work contributed to positive growth in both channels in Fiscal 2024. Sharp expense controls and greater efficiencies led to higher profit flow as we remain focused on executing consistently with financial discipline. As I look back on Fiscal 2024, I am particularly proud of the following achievements: Revenue of $5.3 billion rose 1%, marking a new record. Comparable sales increased 4%, with broad-based strength across brands and channels. Operating income of $427 million and adjusted operating income(1) of $445 million increased 19%, which was our second highest adjusted operating income result since Fiscal 2012. Operating margin was 8.0%, and adjusted operating margin(1) increased 120 basis points to 8.3%. Aerie achieved record revenue on comparable sales growth of 5%. Soft apparel and our activewear collection OFFLINE were key highlights, marked by a very successful extension into sleepwear and continued strength in activewear, where our powerful platform combined with our winning price, quality and value equation continues to differentiate us in the market. In leggings, OFFLINE by Aerie is now the #2 ranked specialty brand in our core customer demographic. American Eagle drove comparable sales growth of 3%, closing the fiscal year with its sixth consecutive quarter of expansion. We maintained our #1 ranking in denim with our core customer base. Women s was a standout, reflecting strong traction with new dressing occasions. Additionally, men s saw sequential improvement, and we were pleased to see new concepts like 24/7 activewear resonate. Strong operating cash flow of $477 million enabled us to invest in our brands and return over $280 million in cash to stockholders. This included $96 million in dividends and $191 million in share repurchases, reflecting 9.5 million shares. Additionally, in March 2025, our Board of Directors authorized an additional 50 million shares for repurchase and we announced a $200 million accelerated share repurchase program. As we look to the future, we remain excited about our long-term opportunity to grow our incredible portfolio of brands. I believe that our team s determination, focus and creativity will continue to drive us forward.
On behalf of our Board of Directors and our entire team, thank you for your continued support and investment in American Eagle Outfitters. Jay L. Schottenstein Executive Chairman of the Board and Chief Executive Officer (1) Adjusted operating income and adjusted operating margin are financial measures that are not calculated in accordance with generally accepted accounting principles in the United States ( GAAP ), which are commonly referred to as non-GAAP or adjusted measures. See Appendix A of this Annual Report for additional detail on and reconciliation of adjusted results and other important information regarding the use of non-GAAP or adjusted measures.
 • shareholder letter icon 5/15/2025 Letter Continued (Full PDF)
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 • stockholder letter icon 5/17/2024 AEO Stockholder Letter
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 • Benford's Law Stocks icon AEO Benford's Law Stock Score = 93


AEO Shareholder/Stockholder Letter Transcript:

ANNUAL RE POR T 2024

American Eagle is a youth culture brand
grounded in denim.
Our purpose extends beyond making the
best jeans   we embrace self expression, culture,
optimism and connection. All are welcome
at AE.
We empower our community to be who they
want to be, so everyone can get out there
and Live Your Life.
Aerie offers the comfiest
intimates, apparel, swim
and accessories made to
wear in and out.
Aerie Real stands for inclusivity and real
representation. We celebrate our community by
advocating for power, positivity and
no retouching.
Always & forever REAL   

May 15, 2025
Dear Fellow Stockholders:
Fiscal 2024 was a positive year for AEO, fueled by our strong brand portfolio and the
strength and determination of our amazing associates. Revenue hit an all-time high, and we
achieved meaningful profit expansion. In March 2024, we introduced our three-year growth
strategy,    Powering Profitable Growth,    which aims to focus the organization on three key
priorities:
    Amplify our Brands;
    Execute with Financial Discipline; and
    Optimize our Operations
We achieved excellent results in the first year of the three-year plan. Revenue hit $5.3 billion and adjusted operating income(1)
increased 19% year over year, marking one of the strongest fiscal years in our history. This contributed to significant
operating margin expansion, in line with our long-term vision for driving structural improvements across the business.
Within our Amplify pillar, both American Eagle and Aerie continued to resonate strongly with customers. Across brands, we
expanded our customer base and delivered positive comparable sales growth. We also continued to Optimize our
Operations, making strategic investments in our store fleet and digital platform. This work contributed to positive growth in
both channels in Fiscal 2024. Sharp expense controls and greater efficiencies led to higher profit flow as we remain
focused on executing consistently with financial discipline.
As I look back on Fiscal 2024, I am particularly proud of the following achievements:
    Revenue of $5.3 billion rose 1%, marking a new record. Comparable sales increased 4%, with broad-based strength
across brands and channels.
    Operating income of $427 million and adjusted operating income(1) of $445 million increased 19%, which was our
second highest adjusted operating income result since Fiscal 2012. Operating margin was 8.0%, and adjusted
operating margin(1) increased 120 basis points to 8.3%.
    Aerie achieved record revenue on comparable sales growth of 5%. Soft apparel and our activewear collection
OFFLINE were key highlights, marked by a very successful extension into sleepwear and continued strength in
activewear, where our powerful platform combined with our winning price, quality and value equation continues to
differentiate us in the market. In leggings, OFFLINE by Aerie is now the #2 ranked specialty brand in our core customer
demographic.
    American Eagle drove comparable sales growth of 3%, closing the fiscal year with its sixth consecutive quarter
of expansion. We maintained our #1 ranking in denim with our core customer base. Women   s was a standout, reflecting
strong traction with new dressing occasions. Additionally, men   s saw sequential improvement, and we were pleased to
see new concepts like 24/7 activewear resonate.
    Strong operating cash flow of $477 million enabled us to invest in our brands and return over $280 million in cash
to stockholders. This included $96 million in dividends and $191 million in share repurchases, reflecting 9.5 million
shares. Additionally, in March 2025, our Board of Directors authorized an additional 50 million shares for repurchase and
we announced a $200 million accelerated share repurchase program.
As we look to the future, we remain excited about our long-term opportunity to grow our incredible portfolio of brands. I
believe that our team   s determination, focus and creativity will continue to drive us forward.

On behalf of our Board of Directors and our entire team, thank you for your continued support and investment in American
Eagle Outfitters.
Jay L. Schottenstein
Executive Chairman of the Board and Chief Executive Officer
(1)
Adjusted operating income and adjusted operating margin are financial measures that are not calculated in accordance with generally
accepted accounting principles in the United States (   GAAP   ), which are commonly referred to as non-GAAP or adjusted measures. See
Appendix A of this Annual Report for additional detail on and reconciliation of adjusted results and other important information regarding the
use of non-GAAP or adjusted measures.



shareholder letter icon 5/15/2025 Letter Continued (Full PDF)
 

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