AMERICAN EAGLE OUTFITTERS INC, 10-K filed on 3/20/2025
Annual Report
v3.25.1
Document and Entity Information - USD ($)
 12 Months Ended
Feb. 01, 2025
Mar. 19, 2025
Aug. 03, 2024
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Feb. 01, 2025    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Trading Symbol AEO    
Entity Registrant Name AMERICAN EAGLE OUTFITTERS, INC.    
Entity Central Index Key 0000919012    
Current Fiscal Year End Date --02-01    
Entity Well-known Seasoned Issuer Yes    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Large Accelerated Filer    
Entity Shell Company false    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Common Stock, Shares Outstanding   172,514,102  
Entity Public Float     $ 3,895,085,181
Entity Interactive Data Current Yes    
Title of 12(b) Security Common Stock, $0.01 par value    
Security Exchange Name NYSE    
Entity File Number 1-33338    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 13-2721761    
Entity Address, Address Line One 77 Hot Metal Street    
Entity Address, City or Town Pittsburgh    
Entity Address, State or Province PA    
Entity Address, Postal Zip Code 15203-2329    
City Area Code 412    
Local Phone Number 432-3300    
Document Annual Report true    
Document Transition Report false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Company’s definitive proxy statement for the 2025 Annual Meeting of Stockholders are incorporated by reference into Part III herein of this Annual Report on Form 10-K. The registrant expects to file such definitive proxy statement with the Securities and Exchange Commission within 120 days of its fiscal year ended February 1, 2025.

    
Auditor Name Ernst & Young LLP    
Auditor Firm ID 42    
Auditor Location Pittsburgh, Pennsylvania    
Auditor Opinion

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of American Eagle Outfitters, Inc. (the Company) as of February 1, 2025 and February 3, 2024, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended February 1, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at February 1, 2025 and February 3, 2024, and the results of its operations and its cash flows for each of the three years in the period ended February 1, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of February 1, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 20, 2025 expressed an unqualified opinion thereon.

    
v3.25.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Current assets:    
Cash and cash equivalents $ 308,962 $ 354,094
Short-term investments 50,000 100,000
Merchandise inventory 636,655 640,662
Accounts receivable, net 262,365 247,934
Prepaid expenses 76,088 65,082
Other current assets 20,161 25,578
Total current assets 1,354,231 1,433,350
Operating lease right-of-use assets 1,295,400 1,005,293
Property and equipment, at cost, net of accumulated depreciation 751,264 713,336
Goodwill, net 225,079 225,303 [1]
Non-current deferred income taxes 68,158 82,064
Intangible assets, net 42,449 46,109
Other assets 94,194 52,454
Total assets 3,830,775 3,557,909
Current liabilities:    
Accounts payable 280,712 268,308
Current portion of operating lease liabilities 313,034 284,508
Accrued compensation and payroll taxes 113,388 152,353
Unredeemed gift cards and gift certificates 70,094 66,285
Accrued income and other taxes 30,677 46,114
Other current liabilities and accrued expenses 74,751 73,604
Total current liabilities 882,656 891,172
Non-current liabilities:    
Non-current operating lease liabilities 1,133,296 901,122
Other non-current liabilities 47,963 28,856
Total non-current liabilities 1,181,259 929,978
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding
Common stock, $0.01 par value; 600,000 shares authorized; 249,566 shares issued; 188,618 and 196,936 shares outstanding, respectively 2,496 2,496
Contributed capital 365,845 360,378
Accumulated other comprehensive loss (56,390) (16,410)
Retained earnings 2,456,063 2,214,159
Treasury stock, 60,948 and 52,630 shares, respectively, at cost (1,001,154) (823,864)
Total stockholders' equity 1,766,860 1,736,759
Total liabilities and stockholders’ equity $ 3,830,775 $ 3,557,909
[1] Beginning balances include accumulated impairment of $43.8 million and $4.2 million as of February 1, 2025 and February 3, 2024, respectively.
v3.25.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Statement of Financial Position [Abstract]      
Preferred stock, par value $ 0.01 $ 0.01 $ 0.01
Preferred stock, shares authorized 5,000,000 5,000,000 5,000,000
Preferred stock, issued 0 0 0
Preferred stock, outstanding 0 0 0
Common stock, par value $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 600,000,000 600,000,000 600,000,000
Common stock, shares issued 249,566,000 249,566,000 249,566,000
Common stock, shares outstanding 188,618,000 196,936,000 195,064,000
Treasury stock, shares 60,948,000 52,630,000 54,502,000
v3.25.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Statement [Abstract]      
Total net revenue $ 5,328,652 $ 5,261,770 $ 4,989,833
Cost of sales, including certain buying, occupancy and warehousing expenses 3,239,719 3,237,192 3,244,585
Gross profit 2,088,933 2,024,578 1,745,248
Selling, general and administrative expenses 1,431,814 1,433,300 1,269,095
Impairment, restructuring and other charges 17,561 141,695 22,209
Depreciation and amortization expense 212,255 226,866 206,897
Operating income 427,303 222,717 247,047
Debt related charges     64,721
Interest (income) expense, net (7,769) (6,190) 14,297
Other (income), net (7,162) (10,951) (10,465)
Income before income taxes 442,234 239,858 178,494
Provision for income taxes 112,854 69,820 53,358
Net income $ 329,380 $ 170,038 $ 125,136
Basic net income per common share $ 1.71 $ 0.87 $ 0.69
Diluted net income per common share $ 1.68 $ 0.86 $ 0.64
Weighted average common shares outstanding - basic 193,056 195,646 181,778
Weighted average common shares outstanding - diluted 196,412 196,863 205,226
v3.25.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 329,380 $ 170,038 $ 125,136
Other comprehensive (loss) gain      
Foreign currency translation (loss) gain (39,980) 16,220 8,215
Other comprehensive (loss) gain (39,980) 16,220 8,215
Comprehensive income $ 289,400 $ 186,258 $ 133,351
v3.25.1
Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Contributed Capital
Contributed Capital
Cumulative Effect, Period of Adoption, Adjustment
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Treasury Stock
Accumulated Other Comprehensive (Loss)
Beginning Balance at Jan. 29, 2022 $ 1,423,672 $ (48,856) $ 2,496 $ 636,355 $ (67,686) $ 2,203,772 $ 18,830 $ (1,378,106) $ (40,845)
Beginning Balance (in shares) at Jan. 29, 2022     168,699            
Stock awards 38,148     38,148          
Repurchase of common stock from employees (9,780)             (9,780)  
Repurchase of common stock from employees (in shares)     (584)            
Reissuance of treasury stock $ 1,599     (24,642)   (1,624)   27,865  
Reissuance of treasury stock (in shares) 1,643   1,643            
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2020-06 [Member]                
Accelerated share repurchase $ (200,000)             (200,000)  
Accelerated share repurchase (Shares)     (17,023)            
Redemption/Exchange of Convertible Senior Notes 323,482     (244,198)   (142,737)   710,417  
Redemption/Exchange of Convertible Senior Notes (in shares)     42,329            
Net income 125,136         125,136      
Other comprehensive income 8,215               8,215
Cash dividends and dividend equivalents (64,767)     1,484   (66,251)      
Contributions from non-controlling interests 2,314     2,314          
Ending Balance at Jan. 28, 2023 $ 1,599,163   $ 2,496 341,775   2,137,126   (849,604) (32,630)
Ending Balance (in shares) at Jan. 28, 2023 195,064   195,064            
Stock awards $ 50,445     50,445          
Repurchase of common stock as part of publicly announced programs (20,261)             (20,261)  
Repurchase of common stock as part of publicly announced programs (in shares)     (1,000)            
Repurchase of common stock from employees (10,666)             (10,666)  
Repurchase of common stock from employees (in shares)     (766)            
Reissuance of treasury stock $ 6,585     (28,038)   (4,936)   39,559  
Reissuance of treasury stock (in shares) 2,539   2,539            
Redemption/Exchange of Convertible Senior Notes $ 8,690     (6,281)   (2,137)   17,108  
Redemption/Exchange of Convertible Senior Notes (in shares)     1,099            
Net income 170,038         170,038      
Other comprehensive income 16,220               16,220
Cash dividends and dividend equivalents (83,825)     2,107   (85,932)      
Contributions from non-controlling interests 370     370          
Ending Balance at Feb. 03, 2024 $ 1,736,759   $ 2,496 360,378   2,214,159   (823,864) (16,410)
Ending Balance (in shares) at Feb. 03, 2024 196,936   196,936            
Stock awards $ 39,006     39,006          
Repurchase of common stock as part of publicly announced programs (190,912)             (190,912)  
Repurchase of common stock as part of publicly announced programs (in shares)     (9,500)            
Repurchase of common stock from employees (13,769)             (13,769)  
Repurchase of common stock from employees (in shares)     (557)            
Reissuance of treasury stock $ 2,285     (36,435)   11,329   27,391  
Reissuance of treasury stock (in shares) 1,739   1,739            
Net income $ 329,380         329,380      
Other comprehensive income (39,980)               (39,980)
Cash dividends and dividend equivalents (96,455)     2,350   (98,805)      
Contributions from non-controlling interests 546     546          
Ending Balance at Feb. 01, 2025 $ 1,766,860   $ 2,496 $ 365,845   $ 2,456,063   $ (1,001,154) $ (56,390)
Ending Balance (in shares) at Feb. 01, 2025 188,618   188,618            
v3.25.1
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Statement of Stockholders' Equity [Abstract]      
Cash dividends and dividend equivalents, Per share $ 0.5 $ 0.425 $ 0.36
Common stock, shares authorized 600,000,000 600,000,000 600,000,000
Common stock, shares issued 249,566,000 249,566,000 249,566,000
Common stock, shares outstanding 188,618,000 196,936,000 195,064,000
Common stock, par value $ 0.01 $ 0.01 $ 0.01
Preferred stock, shares authorized 5,000,000 5,000,000 5,000,000
Preferred stock, shares issued 0 0 0
Preferred stock, shares outstanding 0 0 0
Preferred stock, par value $ 0.01 $ 0.01 $ 0.01
Treasury stock, shares 60,948,000 52,630,000 54,502,000
Reissuance of treasury stock, shares 1,739,000 2,539,000 1,643,000
v3.25.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Operating activities:      
Net income $ 329,380 $ 170,038 $ 125,136
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 220,525 235,213 212,499
Share-based compensation 39,606 51,067 38,986
Deferred income taxes 9,748 (43,456) 31,049
Impairment of assets 6,353 116,365 20,633
Exchange of convertible senior notes     60,341
Changes in assets and liabilities:      
Accounts receivable (15,629) (5,820) 43,851
Merchandise inventory (21,363) (46,304) (38,364)
Operating lease assets 251,204 230,659 345,798
Operating lease liabilities (280,036) (326,571) (361,142)
Other assets (30,354) 17,473 26,280
Accounts payable 15,907 33,432 2,019
Accrued compensation and payroll taxes (38,050) 100,223 (90,114)
Accrued and other liabilities (10,493) 48,391 (10,676)
Net cash provided by operating activities 476,798 580,710 406,296
Investing activities:      
Capital expenditures for property and equipment (222,538) (174,437) (260,378)
Sale of available-for-sale investments 100,000    
Purchase of available-for-sale investments (50,000) (100,000)  
Purchase of equity method investment (35,000)    
Other investing activities (9,972) (12,995) (997)
Net cash (used for) investing activities (217,510) (287,432) (261,375)
Financing activities:      
Accelerated share repurchase     (200,000)
Principal paid in connection with exchange of convertible senior notes due 2025     (136,419)
Cash dividends paid (96,455) (83,825) (64,767)
Repurchase of common stock as part of publicly announced programs (190,912) (10,666) (9,780)
Repurchase of common stock from employees (13,769) (20,261)  
Net proceeds from stock options exercised 3,841 7,646 2,089
Proceeds from revolving line of credit   30,000  
Principal payments on revolving line of credit   (30,000)  
Other financing activities (4,614) (2,368) 984
Net cash (used for) financing activities (301,909) (109,474) (407,893)
Effect of exchange rates on cash (2,511) 81 (1,589)
Net change in cash and cash equivalents (45,132) 183,885 (264,561)
Cash and cash equivalents - beginning of period 354,094 170,209 434,770
Cash and cash equivalents - end of period $ 308,962 $ 354,094 $ 170,209
v3.25.1
Cybersecurity Risk Management, Strategy and Governance
 12 Months Ended
Feb. 01, 2025
Cybersecurity Risk Management, Strategy, and Governance [Abstract]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Risk Management and Strategy

The Board as a whole has the responsibility for the Company’s risk oversight and management, which includes a focus on cybersecurity risks. To oversee cybersecurity risk at the management level, we employ a Chief Information Security Officer (“CISO”) whose team is responsible for leading our company-wide cybersecurity strategies, policies, standards, architectures, operations, and processes. We have an established an Information Security Program, which is integrated into our overall enterprise risk management system and processes, to assess, identify, and manage material risks from cybersecurity threats. This program is based and built upon, informed by and responsive to industry best practice frameworks such as ISO, NIST, and the Payment Card Industry Data Security Standard. Our program undergoes an internal annual review, conducted by our CISO and internal auditors, as well as third party external review. Additionally, we are a member of an industry cybersecurity intelligence and risk-sharing organization, which enables us to stay informed about developments, trends, and risks in the cybersecurity threat landscape.

As an important component of our overall cybersecurity strategy, we leverage a diverse array of third-party cybersecurity vendors and security firms in different capacities to assess or supplement various aspects of our Information Security Program. Such third parties include a managed security service provider who conducts 24/7/365 cybersecurity monitoring and alerting. We also engage independent security professionals from industry leading firms to perform penetration testing and other security testing and have an array of external experts on retainer (including but not limited to cybersecurity breach counsel, experts in incident response, cyber forensics, and threat intelligence). Additionally, we collaborate with various cybersecurity vendors to conduct annual tabletop exercises and trainings to help fortify our Information Security Program. To elevate cybersecurity education, we supplement internal training with third-party cybersecurity vendors, providing annual security awareness training, quarterly phishing exercises, and ongoing security refreshers and reminders throughout the year.

The vendor risk management program is built upon, informed by and responsive to industry best practices, incorporating methodologies such as Standardized Information Gathering (SIG), third-party cyber/privacy attestations (e.g., Systems and Organization Controls (SOC), ISO 27001, and HITRUST), penetration tests conducted by independent security professionals, and integrating appropriate cybersecurity language into legal contracts. This program is designed to conduct appropriate due diligence upon onboarding third-party vendors.

Board Governance and Management

The CISO and designated direct reports meet on a regular basis to discuss pertinent risks, mitigation factors, remediation status, and risk acceptance. Our CISO also serves as our Vice President of Information Security, Disaster Recovery, and Asset Management. He has decades of experience across information technology, information security, and disaster recovery and has received relevant certifications including Certified Information System Auditor (CISA), GIAC Certified Intrusion Analyst (GCIA), GIAC Certified Incident Handler (GCIH), and GIAC Certified Forensic Analyst (GCFA).

Our CISO helps ensure the confidentiality, integrity, and availability of information that we possess through our Cyber Incident Response Plan (“CIRP”). We have assembled a cross-functional Incident Response Team with representation from a multitude of internal teams along with an array of third-party experts having specialized skills to support all aspects of incident response, recovery, and reporting. The CIRP outlines processes to evaluate and respond to various cybersecurity threats, assess the severity of potential and actual incidents and their impacts, and procedures around who should be notified and involved in the Company’s responses thereto. For example, cybersecurity incidents that surpass a certain level of severity require updates to executive leadership and our Board. The CIRP is reviewed annually and has been reviewed by industry-leading incident response providers, internal/external auditors, and others. The CIRP is tested annually at a minimum through tabletop exercises facilitated by an outside expert. These proactive exercises are of paramount importance in helping to refine and optimize our incident response capabilities and minimize the impact of any cybersecurity incident.


Additionally, we have established a Cyber Incident Materiality Assessment Committee (“C-MAC”) that is primarily responsible for conducting a materiality assessment of cybersecurity incidents and determining whether it is material for disclosure and reporting purposes in accordance with applicable rules and regulations. This assessment and determination are separate and distinct from evaluating the cyber severity of an incident, which remains within the purview of the CIRP. The C-MAC is composed of various cross-functional senior members of management, including our Chief Financial Officer, Controller and Chief Accounting Officer, Chief Supply Chain and Technology Officer, General Counsel and Chief Compliance Officer, CISO, Senior Vice President of Corporate Communications and Investor Relations, Vice President of Internal Audit and certain key outside advisors. The C-MAC will coordinate with our Disclosure Committee in connection with any requisite disclosures.

The Board's Audit Committee receives regular reports from the CISO on pertinent cyber risks exposures, the status of projects designed to fortify our Information Security Program, metrics on the effectiveness of this program, and the emerging threats in this area. Cyber insurance coverage is reviewed annually with the Audit Committee, as part of our overall risk management process. Furthermore, on at least a quarterly basis or more often as needed, the CISO provides pertinent cybersecurity risk exposures and updates along with various other business units as part of the enterprise risk management report to the Audit Committee. The Audit Committee is responsible for the review and assessment of cybersecurity risk exposures and the steps taken to monitor and control those exposures. Our senior officers have ongoing engagement with the Audit Committee on cybersecurity issues.


Although the risks from cybersecurity threats have not materially affected our business strategy, results of operations, or financial condition to date, they may in the future, and we continue to closely monitor cyber risk. Overall, the Company has implemented tactical processes for assessing, identifying, and managing material risks from cybersecurity threats to the Company, including governance at the Board level and accountability in our executive management for the execution of our cyber risk management strategy and the controls designed to protect our operations. See “Risk Factors—Operational Risks” in Part I, Item 1A of this Annual Report, which should be read in conjunction with this Item 1C, for additional information regarding the Company’s cybersecurity risks.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have an established an Information Security Program, which is integrated into our overall enterprise risk management system and processes, to assess, identify, and manage material risks from cybersecurity threats.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

The Board as a whole has the responsibility for the Company’s risk oversight and management, which includes a focus on cybersecurity risks. To oversee cybersecurity risk at the management level, we employ a Chief Information Security Officer (“CISO”) whose team is responsible for leading our company-wide cybersecurity strategies, policies, standards, architectures, operations, and processes. We have an established an Information Security Program, which is integrated into our overall enterprise risk management system and processes, to assess, identify, and manage material risks from cybersecurity threats. This program is based and built upon, informed by and responsive to industry best practice frameworks such as ISO, NIST, and the Payment Card Industry Data Security Standard. Our program undergoes an internal annual review, conducted by our CISO and internal auditors, as well as third party external review. Additionally, we are a member of an industry cybersecurity intelligence and risk-sharing organization, which enables us to stay informed about developments, trends, and risks in the cybersecurity threat landscape.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board's Audit Committee receives regular reports from the CISO on pertinent cyber risks exposures, the status of projects designed to fortify our Information Security Program, metrics on the effectiveness of this program, and the emerging threats in this area. Cyber insurance coverage is reviewed annually with the Audit Committee, as part of our overall risk management process.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Overall, the Company has implemented tactical processes for assessing, identifying, and managing material risks from cybersecurity threats to the Company, including governance at the Board level and accountability in our executive management for the execution of our cyber risk management strategy and the controls designed to protect our operations.
Cybersecurity Risk Role of Management [Text Block] The CISO and designated direct reports meet on a regular basis to discuss pertinent risks, mitigation factors, remediation status, and risk acceptance.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The CISO and designated direct reports meet on a regular basis to discuss pertinent risks, mitigation factors, remediation status, and risk acceptance. Our CISO also serves as our Vice President of Information Security, Disaster Recovery, and Asset Management. He has decades of experience across information technology, information security, and disaster recovery and has received relevant certifications including Certified Information System Auditor (CISA), GIAC Certified Intrusion Analyst (GCIA), GIAC Certified Incident Handler (GCIH), and GIAC Certified Forensic Analyst (GCFA).
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO also serves as our Vice President of Information Security, Disaster Recovery, and Asset Management. He has decades of experience across information technology, information security, and disaster recovery and has received relevant certifications including Certified Information System Auditor (CISA), GIAC Certified Intrusion Analyst (GCIA), GIAC Certified Incident Handler (GCIH), and GIAC Certified Forensic Analyst (GCFA).
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Board's Audit Committee receives regular reports from the CISO on pertinent cyber risks exposures, the status of projects designed to fortify our Information Security Program, metrics on the effectiveness of this program, and the emerging threats in this area.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 329,380 $ 170,038 $ 125,136
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Feb. 01, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arr Modified [Flag] false
Non-Rule 10b5-1 Arr Modified [Flag] false
v3.25.1
Insider Trading Policies and Procedures
 12 Months Ended
Feb. 01, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.1
Business Operations
 12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Business Operations

1. Business Operations

American Eagle Outfitters, Inc. (the “Company,” “we” and “our”), a Delaware corporation, operates under the American Eagle® (“AE”) and Aerie® brands. We also operate Todd Snyder New York (“Todd Snyder”), a premium menswear brand, and Unsubscribed, which focuses on consciously-made slow fashion.

Founded in 1977, the Company is a leading multi-brand specialty retailer that operates nearly 1,500 retail stores in the U.S. and internationally, online through our digital channels at www.ae.com and www.aerie.com, www.toddsnyder.com, www.unsubscribed.wcom and more than 300 international store locations managed by third-party operators. Through its portfolio of brands, the Company offers high quality, on-trend clothing, accessories, and personal care products at affordable prices. The Company’s online business, AEO Direct, ships to approximately 90 countries worldwide.

AEO Direct reinforces each particular brand platform and is designed to complement the in-store experience. We offer the ability for customers to return products seamlessly via any channel regardless of where products were originally purchased. We also offer a variety of channels to fulfill customer orders. These include “ship to home,” which can be fulfilled either through our distribution centers or our store sites (buy online, ship from stores) when purchased online or through our app; and “store pick-up,” which consists of online orders being fulfilled either in store or curbside, and we offer “store-to-door” capability where customers order within our store, and the goods are shipped directly to their home.

v3.25.1
Summary of Significant Accounting Policies
 12 Months Ended
Feb. 01, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries and consolidated entities where the Company's ownership percentage is less than 100%. Non-controlling interests are included as a component of contributed capital within the Consolidated Balance Sheets and Consolidated Statements of Stockholders' Equity and was not material for any period presented. All intercompany transactions and balances have been eliminated in consolidation. At February 1, 2025, the Company operated in two reportable segments, American Eagle and Aerie.

Fiscal Year

Our fiscal year is a 52- or 53-week year that ends on the Saturday nearest to January 31. As used herein, "Fiscal 2027" refers to the 52-week period that will end on January 29, 2028. "Fiscal 2025" refers to the 52 week period that will end on January 31, 2026. "Fiscal 2024" refers to the 52-week period ended February 1, 2025. “Fiscal 2023” refers to the 53-week period ended February 3, 2024. “Fiscal 2022” refers to the 52-week period ended January 28, 2023.

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, our management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates.

 

Recent Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt with Conversion and Other Options (“ASU 2020-06”), which simplifies the accounting for convertible debt instruments. The new guidance eliminates two of the three models in Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options that require separating embedded conversion features from convertible

instruments. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share (“EPS”) calculation. The guidance is effective for fiscal years beginning after December 15, 2021. The Company adopted ASU 2020-06 effective January 30, 2022 under the modified retrospective method.

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which requires that segment expenses deemed significant to the chief operating decision maker (CODM) typically incorporated in measuring profit or loss of the segment should be disclosed. The guidance also requires that the difference between segment revenues and these significant segment expenses is disclosed. Any annually disclosed segment information is now required to be reported in interim periods as well. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Public entities are required to apply the amendment retrospectively to prior periods presented in the financial statements. The Company adopted ASU 2023-07 effective for its Fiscal year 2024 and for the interim periods beginning in Fiscal 2025.

Refer to Note 14, Segment Reporting, to the Consolidated Financial Statements for additional information regarding Segment Reporting.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures ("ASU 2023-09"), which requires increased transparency in tax disclosures, specifically by expanding requirements for rate reconciliation and income taxes paid information. Additionally, the amendment requires disclosures of income/(loss) from continuing operations before taxes disaggregated between domestic and foreign, and income tax expense/(benefit), disaggregated by federal, state, and foreign. Disclosure requirements about the nature and estimated range of the reasonably possible change in unrecognized tax benefits over the next year have been removed as part of this amendment. The guidance is effective for fiscal years beginning after December 15, 2024. The Company plans to adopt ASU 2023-09 effective for Fiscal 2025.

Refer to Note 13, Income Taxes, to the Consolidated Financial Statements for additional information regarding Income Taxes.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires disclosure of additional information for specific expense categories in the notes to financial statements for interim and annual periods. Specifically, the amendment requires quantitative disclosure for purchases of inventory, employee compensation, depreciation, and intangible asset amortization within an expense caption. For any remaining amounts within an expense caption, a qualitative description must be included. In all reporting periods, a total selling expense amount must be disclosed, with an annual disclosure of the entity's definition of selling expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company plans to adopt ASU 2024-03 effective for Fiscal 2027.

Foreign Currency Translation

In accordance with ASC 830, Foreign Currency Matters, the Company translates assets and liabilities denominated in foreign currencies into U.S. dollars (“USD”) (the reporting currency) at the exchange rates prevailing at the balance sheet date. The Company translates revenues and expenses denominated in foreign currencies into USD at the monthly average exchange rates for the period. Gains or losses resulting from foreign currency transactions are included in the consolidated results of operations, whereas related translation adjustments are reported as an element of other comprehensive income (loss) in accordance with ASC 220, Comprehensive Income. Refer to Note 10, Accumulated Other Comprehensive Loss, to the Consolidated Financial Statements for information regarding accumulated other comprehensive income (loss).

Cash and Cash Equivalents and Short-term Investments

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Short-term investments classified as available-for-sale include certificates of deposit with an original maturity greater than three months, but less than one year.

Refer to Note 3, Cash and Cash Equivalents and Short-term Investments, to the Consolidated Financial Statements for information regarding cash and cash equivalents, and short-term investments.

Accounts Receivable

The Company's receivables are primarily generated from product sales and royalties from our licensees. The primary indicators of the credit quality of our receivables are aging, payment history, economic sector information and outside credit monitoring, and are assessed on a quarterly basis. Our credit loss exposure is mainly concentrated in our accounts receivable portfolio. Our allowance for credit losses is calculated using a loss-rate method based on historical experience, current market conditions and reasonable forecasts. For Fiscal 2024, we did not observe a significant deterioration of our receivable portfolio that required a significant increase in our allowance for credit losses. As of February 1, 2025 and February 3, 2024, our allowance for credit losses was $8.9 million and $12.7 million, respectively.

Merchandise Inventory

Merchandise inventory is valued at the lower of average cost or net realizable value, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company records merchandise receipts when control of the merchandise has transferred to the Company.

The Company reviews its inventory levels to identify slow-moving merchandise and generally uses markdowns to clear merchandise. Additionally, the Company estimates a markdown reserve for future planned permanent markdowns related to current inventory. Markdowns may occur when inventory exceeds customer demand for reasons of style, seasonal adaptation, changes in customer preference, lack of consumer acceptance of fashion items, or competition, or if it is determined that the inventory in stock will not sell at its currently ticketed price. Such markdowns may have a material adverse impact on earnings, depending on the extent and amount of inventory affected.

The Company also estimates a shrinkage reserve for the period between the last physical count and the balance sheet date. The estimate for the shrinkage reserve, based on historical results, can be affected by changes in merchandise mix and changes in actual shrinkage trends.

Property and Equipment

Property and equipment are recorded on the basis of cost with depreciation computed utilizing the straight-line method over the assets’ estimated useful lives. The useful lives of our major classes of assets are as follows:

 

Buildings

25 years

Leasehold improvements

Lesser of 10 years or the term of the lease

Fixtures and equipment

Five years

Information technology

Three to five years

 

As of February 1, 2025, the weighted average remaining useful life of our assets was approximately six years.

In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), the Company’s management evaluates the value of leasehold improvements, store fixtures, and operating lease right-of-use ("ROU") assets associated with retail stores. The Company evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified. Impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the projected undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts. When events such as these occur, the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of operating income within impairment, restructuring, and other charges in the Consolidated Statements of Operations.

Our impairment loss calculations require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values. The significant assumptions used in our fair value analysis are forecasted revenue and market rent. We do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate long-lived asset impairment losses. However, if actual results are not consistent with our estimates and assumptions, our consolidated operating results could be adversely affected.

When the Company closes, remodels, or relocates a store prior to the end of its lease term, the remaining net book value of the assets related to the store is recorded as a write-off of assets within depreciation and amortization expense.

Refer to Note 6, Property and Equipment, Net, to the Consolidated Financial Statements for additional information regarding property and equipment, and refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2024, Fiscal 2023, and Fiscal 2022.

Goodwill and Intangible Assets

The Company’s goodwill is primarily related to the acquisitions of its regionalized fulfillment center network, as well as its importing operations and Canadian business, and represents the excess of cost over fair value of net assets of businesses acquired. In accordance with ASC 350, Intangibles – Goodwill and Other, the Company evaluates goodwill for possible impairment at least annually as of the last day of the fiscal year and upon occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of a reporting unit may be below its carrying value. If the carrying value of the reporting unit exceeds the fair value, an impairment charge is recorded in the period of the evaluation based on that difference. The Company last performed an annual goodwill impairment test as of February 1, 2025. No indicators of impairment were present during Fiscal 2024 or Fiscal 2022. In Fiscal 2023, the Company concluded that the goodwill assigned to the Quiet Platforms reporting unit was impaired, resulting in a charge of $39.6 million recorded within impairment, restructuring and other charges on the Consolidated Statements of Operations, due to insufficient prospective cash flows to support the carrying value of the business. Significant, subjective assumptions used in the Company's fair value estimate included forecasted cost of sales, forecasted operating expense and discount rate.

Definite-lived intangible assets are initially recorded at fair value, with amortization computed utilizing the straight-line method over the assets’ estimated useful lives. The Company’s definite-lived intangible assets, which consist primarily of trademark assets, are generally amortized over 10 to 15 years.

The Company evaluates definite-lived intangible assets for impairment in accordance with ASC 360 when events or circumstances indicate that the carrying value of the asset may not be recoverable. Such an evaluation includes the estimation of undiscounted future cash flows to be generated by those assets. If the sum of the estimated future undiscounted cash flows is less than the carrying amounts of the assets, then the assets are impaired and are adjusted to their estimated fair value. No definite-lived intangible asset impairment charges were recorded during Fiscal 2024 or Fiscal 2022. During Fiscal 2023, the Company recorded a $40.5 million impairment charge within impairment, restructuring, and other charges on the Consolidated Statements of Operations, related to the definite-lived intangible assets of Quiet Platforms, due to insufficient prospective cash flows to support the carrying value of the assets.

Refer to Note 7, Goodwill and Intangible Assets, Net, to the Consolidated Financial Statements for additional information regarding goodwill and intangible assets and refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2023.

Equity Method Investments

During Fiscal 2024, the Company entered into a Limited Partnership Agreement of ACON Apparel Investors, L.P. (the "Fund"), with ACON Apparel GenPar, LLC. ("ACON") as the general partner. The Company paid $35.0 million for a 20% interest for its limited partner position in the Fund, which is recorded in Other Assets in the Consolidated Balance Sheet.

Construction Allowances

As part of certain lease agreements for retail stores, the Company receives construction allowances from lessors, which are generally composed of cash amounts. The Company records a receivable and an adjustment to the operating lease ROU asset at the lease commencement date (date of initial possession of the store). The deferred lease credit is amortized as part of the single lease cost over the term of the original lease (including the pre-opening build-out period). The receivable is reduced as amounts are received from the lessor.

Self-Insurance Liability

The Company uses a combination of insurance and self-insurance mechanisms for certain losses related to employee medical benefits and worker’s compensation. Costs for self-insurance claims filed and claims incurred but not reported are accrued based on known claims and historical experience. Management believes that it has adequately reserved for its self-insurance liability, which is capped by stop-loss contracts with insurance companies. However, any significant variation of future claims from historical trends could cause actual results to differ from the accrued liability.

Leases

The Company leases all store premises, its Canadian distribution center in Mississauga, Ontario, its regional distribution facilities, some of its office space and certain information technology and office equipment. These leases are generally classified as operating leases.

Store leases generally provide for a combination of base rentals and contingent rent based on store sales. Additionally, most leases include lessor incentives such as construction allowances and rent holidays. The Company is typically responsible for tenant occupancy costs including maintenance costs, common area charges, real estate taxes and certain other expenses. When measuring operating lease ROU assets and operating lease liabilities, the Company only includes cash flows related to options to extend or terminate leases once those options are executed.

Some leases have variable payments. However, because they are not based on an index or rate, they are not included in the measurement of operating lease ROU assets and operating lease liabilities.

When determining the present value of future payments for an operating lease that does not have a readily determinable implicit rate, the Company uses its incremental borrowing rate as of the date of initial possession of the leased asset.

For leases that qualify for the short-term lease exemption, the Company does not record an operating lease liability or operating lease ROU asset. Short-term lease payments are recognized on a straight-line basis over the lease term of 12 months or less.

Refer to Note 9, Leases, to the Consolidated Financial Statements for additional information.

Co-Branded and Private Label Credit Cards

The Company offers a co-branded credit card and a private-label credit card under the AE and Aerie brands. These credit cards are issued by a third-party bank (the “Bank”) in accordance with a credit card agreement (the “Agreement”). The Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. We receive funding from the Bank based on the Agreement and card activity, which includes payments for new account activations and usage of the credit cards. We recognize revenue for this funding as we fulfill our performance obligations under the Agreement. This revenue is recorded in other revenue, which is a component of total net revenue in our Consolidated Statements of Operations.

Customer Loyalty Program

The Company offers a highly digitized loyalty program called Real Rewards by American Eagle and Aerie™ (the “Program”). The Program features a variety of benefits for loyalty members and credit card members. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn dollar rewards in the form of discount savings certificates. Rewards earned are valid through the stated expiration date, which is 60 days from the issuance date of the reward. Rewards not redeemed during the 60-day redemption period are forfeited.

Points earned under the Program on purchases at AE and Aerie are accounted for in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). The portion of the sales revenue attributed to the reward points is deferred and recognized when the reward is redeemed or when the points expire, using the relative stand-alone selling price method. Additionally, reward points earned using the co-branded credit card on non-AE or Aerie purchases are accounted for in accordance with ASC 606. As the points are earned, a current liability is recorded for the estimated cost of the reward, and the impact of adjustments is recorded in revenue.

The Company defers a portion of the sales revenue attributed to the loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606.

Sales Return Reserve

Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages.

 

 

 

Fiscal Years Ending

 

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

 

Beginning balance

 

$

10,766

 

 

$

10,369

 

 

$

9,168

 

 

Returns

 

 

(161,891

)

 

 

(161,833

)

 

 

(150,987

)

 

Provisions

 

 

160,801

 

 

 

162,230

 

 

 

152,188

 

 

Ending balance

 

$

9,676

 

 

$

10,766

 

 

$

10,369

 

 

 

The presentation on a gross basis consists of a separate right of return asset and liability. These amounts are recorded within (i) prepaid expenses and other and (ii) other current liabilities and accrued expenses, respectively, on the Consolidated Balance Sheets.

Long-Term Debt

In April 2020, the Company issued $415 million aggregate principal amount of convertible senior notes due 2025 (the "2025 Notes"). In accordance with ASU 2020-06, the 2025 Notes were accounted for as a single balance in long-term debt beginning in Fiscal 2022, throughout their final redemption in Fiscal 2023.

In June 2022, the Company entered into an amended and restated credit agreement (the “Credit Agreement”). The Credit Agreement provides senior secured asset-based revolving credit for loans and letters of credit up to $700 million, subject to customary borrowing base limitations (the "Credit Facility"). The Credit Facility expires on June 24, 2027.

Refer to Note 8, Long-Term Debt, Net, to the Consolidated Financial Statements for additional information regarding Long-Term Debt.

Income Taxes

The Company calculates income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires the use of the liability method. Under this method, deferred tax assets and liabilities are recognized based on the difference between the Consolidated Financial Statements carrying amounts of existing assets and liabilities and their respective tax bases as computed pursuant to ASC 740. Deferred tax assets and liabilities are measured using the tax rates, based on certain judgments regarding enacted tax laws and published guidance in effect in the years when those temporary differences are expected to reverse. A valuation allowance is established against the deferred tax assets when it is more likely than not that some portion or all of the deferred taxes may not be realized. Changes in the Company’s level and composition of earnings, tax laws or the deferred tax valuation allowance, as well as the results of tax audits may materially impact the Company’s effective income tax rate.

The Company evaluates its income tax positions in accordance with ASC 740, which prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction. Under ASC 740, a tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable based on its technical merits.

The calculation of deferred tax assets and liabilities, as well as the decision to recognize a tax benefit from an uncertain position and to establish a valuation allowance requires management to make estimates and assumptions. The Company believes that its estimates and assumptions are reasonable, although actual results may have a positive or negative material impact on the balances of deferred tax assets and liabilities, valuation allowances or net income.

Refer to Note 13, Income Taxes, to the Consolidated Financial Statements for additional information.

Accelerated Share Repurchase Agreement

On June 3, 2022, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with JPMorgan Chase Bank (“JPM”). Pursuant to the terms of the ASR Agreement, on June 3, 2022, the Company paid $200.0 million in cash and received an initial delivery of 13.4 million shares of its common stock on June 3, 2022. At final settlement, on July 28, 2022, an additional 3.7 million shares were received. The cumulative repurchase under the ASR Agreement was 17.0 million shares repurchased at an average price per share of $11.75. The aforementioned shares have been recorded as treasury stock.

Revenue Recognition

The Company recognizes revenue pursuant to ASC 606. Revenue is recorded for store sales upon the purchase of merchandise by customers. The Company’s e-commerce operation records revenue upon the customer receipt date of the merchandise. Shipping and handling revenues are included in total net revenue. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Company’s Consolidated Balance Sheets.

The Company recognizes royalty revenue generated from its license or franchise agreements based on a percentage of merchandise sales by the licensee/franchisee. This revenue is recorded as a component of total net revenue when earned and collection is probable.

The Company defers a portion of the sales revenue attributed to loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. Refer to “Customer Loyalty Program” above for additional information.

Revenue associated with Quiet Platforms is recognized as the services are performed.

Cost of Sales, Including Certain Buying, Occupancy, and Warehousing Expenses

Cost of sales consists of merchandise costs, including design costs, sourcing, importing and inbound freight costs, as well as markdowns, shrinkage and certain promotional costs (collectively, “merchandise costs”); Quiet Platforms' costs to service its customers; and buying, occupancy and warehousing costs and services.

Design costs are related to the Company's design center operations and include compensation, travel and entertainment, supplies and samples for our design teams, as well as rent and depreciation for our design center. These costs are included in cost of sales as the respective inventory is sold.

Buying, occupancy and warehousing costs and services consist of compensation, employee benefit expenses and travel and entertainment for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving and inspection costs; and shipping and handling costs related to our e-commerce operation. Gross profit is the difference between total net revenue and cost of sales.

Selling, General, and Administrative Expenses

Selling, general and administrative expenses consist of compensation and employee benefit expenses, including salaries, incentives and related benefits associated with our stores and corporate headquarters. Selling, general and administrative expenses also include advertising costs, supplies for our stores and home office, communication costs, travel and entertainment, leasing costs and services purchased.

Selling, general and administrative expenses do not include compensation, employee benefit expenses and travel for our design, sourcing and importing teams, our buyers and our distribution centers as these amounts are recorded in cost of sales. Additionally, selling, general and administrative expenses do not include rent and utilities, operating costs of our distribution centers, and shipping and handling costs related to our e-commerce operations, all of which are included in cost of sales.

Advertising Costs

Certain advertising costs, including direct mail, in-store photographs, and other promotional costs are expensed when the marketing campaign commences. As of February 1, 2025, the Company had prepaid advertising costs of $12.1 million. As of February 3, 2024, the Company had prepaid advertising expense of $7.6 million. All other advertising costs are expensed as incurred. The Company recognized $206.3 million, $186.9 million, and $175.2 million in advertising expense during Fiscal 2024, Fiscal 2023, and Fiscal 2022, respectively.

Store Pre-Opening Costs

Store pre-opening costs consist primarily of rent, advertising, supplies, and payroll expenses. These costs are expensed as incurred.

Debt-Related Charges

There were no debt related charges in Fiscal 2024 or Fiscal 2023. Refer to Note 8, Long-Term Debt, Net, to the Consolidated Financial Statements for additional information regarding the 2025 Notes.

Interest (Income) Expense, Net

Interest (income) expense, net primarily consists of interest income from cash and cash equivalents and short-term investments.

Other Income, Net

Other income, net consists primarily of foreign currency fluctuations and changes in other non-operating items. Non-controlling interest was not material for any period presented and is included within other income, net.

Legal Proceedings and Claims

The Company is subject to certain legal proceedings and claims arising out of the conduct of its business. In accordance with ASC 450, Contingencies (“ASC 450”), the Company records a reserve for estimated losses when the loss is probable and the amount can be reasonably estimated. If a range of possible loss exists and no anticipated loss within the range is more likely than any other anticipated loss, the Company records the accrual at the low end of the range, in accordance with ASC 450. As the Company believes that it has provided adequate reserves, it anticipates that the ultimate outcome of any matter currently pending against the Company will not materially affect the consolidated financial position, results of operations or cash flows of the Company. However, our assessment of any litigation or other legal claims could potentially change in light of the discovery of facts not presently known or determinations by judges, juries, or other finders of fact that are not in accord with management’s evaluation of the possible liability or outcome of such litigation or claims.

Supplemental Disclosures of Cash Flow Information

The table below shows supplemental cash flow information for cash amounts paid (received) during the respective periods:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Cash paid (received) during the periods for:

 

 

 

 

 

 

 

 

 

Income taxes

 

$

139,777

 

 

$

31,440

 

 

$

(22,109

)

Interest

 

$

1,592

 

 

$

2,494

 

 

$

15,435

 

Segment Information

The Company has identified two operating segments (American Eagle and Aerie brand) that also represent our reportable segments and reflect our CODM's (defined as our CEO) internal view of analyzing results and allocating resources. Additionally, our Todd Snyder and Unsubscribed brands and Quiet Platforms have been identified as separate operating segments; however, as they do not meet the quantitative thresholds for separate disclosures they have been included in the Corporate and Other category. For additional information regarding the Company’s segment and geographic information, refer to Note 14, Segment Reporting, to the Consolidated Financial Statements.
v3.25.1
Cash and Cash Equivalents and Short-term Investments
 12 Months Ended
Feb. 01, 2025
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents and Short-term Investments

The following table summarizes the fair market value of our cash, cash equivalents, and short-term investments, which are recorded on the Consolidated Balance Sheets:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

(In thousands)

 

2025

 

 

2024

 

Cash and cash equivalents:

 

 

 

 

 

 

Cash

 

$

150,053

 

 

$

162,279

 

Interest-bearing deposits

 

$

158,909

 

 

$

191,815

 

Total cash and cash equivalents

 

$

308,962

 

 

$

354,094

 

Short-term investments:

 

 

 

 

 

 

Certificates of deposits

 

$

50,000

 

 

$

100,000

 

Total short-term investments

 

$

50,000

 

 

$

100,000

 

Total cash and short-term investments

 

$

358,962

 

 

$

454,094

 
v3.25.1
Fair Value Measurements
 12 Months Ended
Feb. 01, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

4. Fair Value Measurements

ASC 820, Fair Value Measurement Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date.

Financial Instruments

Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

•
Level 1 — Quoted prices in active markets.
•
Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly.
•
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s cash equivalents and short-term investments are Level 1 financial assets and are measured at fair value on a recurring basis, for all periods presented. Refer to Note 3, Cash and Cash Equivalents and Short-term Investments, to the Consolidated Financial Statements for additional information regarding cash equivalents and short-term investments.

The Company had no other financial instruments that required fair value measurement for any of the periods presented.

 

 

Fair Value Measurements at February 1, 2025

 

(In thousands)

Carrying Amount

 

 

Quoted Market
Prices in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Cash

$

150,053

 

 

$

150,053

 

 

 

—

 

 

 

—

 

Interest-bearing deposits

 

158,909

 

 

 

158,909

 

 

 

—

 

 

 

—

 

Total cash and cash equivalents

$

308,962

 

 

$

308,962

 

 

 

—

 

 

 

—

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposits

$

50,000

 

 

$

50,000

 

 

 

—

 

 

 

—

 

Total short-term investments

$

50,000

 

 

$

50,000

 

 

 

—

 

 

 

—

 

Total cash and short-term investments

$

358,962

 

 

$

358,962

 

 

 

—

 

 

 

—

 

 

Long-Term Debt

As of February 1, 2025, the Company had no outstanding borrowings under its Credit Facilities.

The Company's 2025 Notes were fully redeemed during Fiscal 2023. The fair value of the Company's 2025 Notes was not required to be measured at fair value on a recurring basis. Upon issuance, the fair value of the 2025 Notes was measured using two approaches that consider market-related conditions, including market benchmark rates and a secondary market quoted price, and is therefore within Level 2 of the fair value hierarchy.

Refer to Note 8, Long-Term Debt, Net, to the Consolidated Financial Statements for additional information regarding long-term debt and other credit arrangements.

Non-Financial Assets

The Company’s non-financial assets, which include intangible assets and property and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur and the Company is required to evaluate the non-financial asset for impairment, a resulting impairment would require that the non-financial asset be recorded at the estimated fair value. Certain long-lived assets were measured at fair value on a nonrecurring basis using Level 3 inputs as defined in ASC 820. During Fiscal 2024, the Company recorded asset impairment charges of $6.4 million related to the sale of its Hong Kong retail operations. During Fiscal 2023, the Company recorded asset impairment charges of $74.8 million primarily related to Quiet Platforms definite-lived intangible assets ($40.5 million), property and equipment and ROU assets ($24.7 million), Japan property and equipment and ROU assets ($8.3 million), and Hong Kong store property and equipment ($1.3 million). These assets were adjusted to their fair value and the loss on impairment was recorded within impairment, restructuring and other charges in the Consolidated Statements of Operations for Fiscal 2024 and Fiscal 2023, respectively. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information regarding impairment, restructuring and other charges.

The fair value of the Company’s store assets in Fiscal 2024 and Fiscal 2023 was determined by estimating the amount and timing of net future cash flows and discounting them using a risk-adjusted rate of interest. The Company estimates future cash flows based on its experience and knowledge of the market in which the store is located.

The fair value of the Company's ROU assets was based upon market rent assumptions.
v3.25.1
Earnings per Share
 12 Months Ended
Feb. 01, 2025
Earnings Per Share [Abstract]  
Earnings per Share

5. Earnings per Share

The following is a reconciliation between basic and diluted weighted average shares outstanding:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income and numerator for basic EPS

 

$

329,380

 

 

$

170,038

 

 

$

125,136

 

Add: Interest expense, net of tax, related to the 2025 Notes (1)

 

 

—

 

 

 

58

 

 

 

5,474

 

Numerator for diluted EPS

 

$

329,380

 

 

$

170,096

 

 

$

130,610

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Denominator for basic EPS - weighted average shares

 

 

193,056

 

 

 

195,646

 

 

 

181,778

 

Add: Dilutive effect of the 2025 Notes (1)

 

 

—

 

 

 

205

 

 

 

21,507

 

Add: Dilutive effect of stock options and non-vested restricted stock

 

 

3,356

 

 

 

1,012

 

 

 

1,941

 

Denominator for diluted EPS - adjusted weighted average shares

 

 

196,412

 

 

 

196,863

 

 

 

205,226

 

Anti-dilutive shares (2)

 

 

500

 

 

 

1,289

 

 

 

2,182

 

 

(1)
In Fiscal 2022, the Company adopted ASU 2020-06. The Company utilizes the "if-converted" method of calculating diluted EPS. Refer to Note 2, Summary of Significant Accounting Policies, to the Consolidated Financial Statements for additional information regarding the impact of the adoption of ASU 2020-06.
(2)
For all periods presented, anti-dilutive shares relate to stock options and unvested restricted stock.

Refer to Note 8, Long-Term Debt, Net, and Note 11, Share-Based Payments, to the Consolidated Financial Statements for additional information regarding the 2025 Notes and share-based compensation, respectively.
v3.25.1
Property and Equipment, net
 12 Months Ended
Feb. 01, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net

6. Property and Equipment, Net

Property and equipment, net consists of the following:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

(In thousands)

 

2025

 

 

2024

 

Land

 

$

17,910

 

 

$

17,910

 

Buildings

 

 

228,390

 

 

 

222,660

 

Leasehold improvements

 

 

890,155

 

 

 

850,519

 

Fixtures and equipment

 

 

1,432,344

 

 

 

1,335,173

 

Construction in progress

 

 

2,486

 

 

 

852

 

Property and equipment, at cost

 

$

2,571,285

 

 

$

2,427,114

 

Less: Accumulated depreciation

 

 

(1,820,021

)

 

 

(1,713,778

)

Property and equipment, net

 

$

751,264

 

 

$

713,336

 

 

Depreciation expense is as follows:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Depreciation expense

 

$

216,093

 

 

$

230,833

 

 

$

208,014

 

 

Additionally, during Fiscal 2024, Fiscal 2023 and Fiscal 2022, the Company recorded $5.1 million, $3.6 million, and $4.4 million, respectively, related to asset write-offs within depreciation and amortization expense.
v3.25.1
Goodwill and Intangible Assets, net
 12 Months Ended
Feb. 01, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, net

7. Goodwill and Intangible Assets, Net

Goodwill and definite-lived intangible assets, net consist of the following:

 

 

 

Fiscal Years Ending

 

 

 

February 1, 2025

 

 

February 3, 2024

 

(In thousands)

 

American Eagle

 

 

Aerie

 

 

Corporate and Other (3)

 

 

Total

 

 

American Eagle

 

 

Aerie

 

 

Corporate and Other (3)

 

 

Total

 

Goodwill, beginning balance(1)

 

$

114,703

 

 

$

110,600

 

 

$

-

 

 

$

225,303

 

 

$

114,747

 

 

$

110,600

 

 

$

39,598

 

 

$

264,945

 

Impairment(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(39,598

)

 

 

(39,598

)

Foreign currency fluctuation

 

 

(224

)

 

 

 

 

 

 

 

 

(224

)

 

 

(44

)

 

 

—

 

 

 

—

 

 

 

(44

)

Goodwill, ending balance

 

$

114,479

 

 

$

110,600

 

 

$

-

 

 

$

225,079

 

 

$

114,703

 

 

$

110,600

 

 

$

-

 

 

$

225,303

 

 

(1)
Beginning balances include accumulated impairment of $43.8 million and $4.2 million as of February 1, 2025 and February 3, 2024, respectively.
(2)
Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.
(3)
Corporate and Other includes goodwill allocated to the Quiet Platforms reporting unit, which has been identified as a separate operating segment, but is not material to disclose as a separate reportable segment.

 

 

 

Fiscal Years Ending

 

(In thousands)

 

February 1, 2025

 

 

February 3, 2024

 

Intangible assets, net, beginning balance

 

$

46,109

 

 

$

94,536

 

Additions

 

 

772

 

 

 

826

 

Impairment(1)

 

 

—

 

 

 

(40,533

)

Amortization

 

 

(4,432

)

 

 

(8,720

)

Intangible assets, net (2)

 

$

42,449

 

 

$

46,109

 

 

 

(1)
Impairment included $31.2 million of customer relationships and $9.3 million of trade names related to Quiet Platforms recorded in Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information
(2)
The ending balance includes accumulated amortization of $104.9 million and $100.9 million as of February 1, 2025 and February 3, 2024, respectively.

Amortization expense is as follows:

 

 

 

Fiscal Years Ending

 

(In thousands)

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Amortization expense

 

$

4,432

 

 

$

8,748

 

 

$

9,162

 

 

The table below summarizes the estimated future amortization expense for intangible assets existing as of February 1, 2025 for the next five fiscal years:

 

 

 

Future

 

 

(In thousands)

 

Amortization

 

 

2025

 

$

4,142

 

 

2026

 

$

4,056

 

 

2027

 

$

3,958

 

 

2028

 

$

3,876

 

 

2029

 

$

3,702

 

 
v3.25.1
Long-Term Debt, Net
 12 Months Ended
Feb. 01, 2025
Debt Disclosure [Abstract]  
Long-Term Debt, Net

8. Long-Term Debt, Net

 

The Company had no long-term debt outstanding as of February 1, 2025, February 3, 2024, and January 28, 2023.

2025 Notes

In April 2020, the Company issued $415 million aggregate principal amount of convertible senior notes due 2025 in a private placement to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended. The 2025 Notes had a stated interest rate of 3.75%, payable semi-annually. The Company used the net proceeds from the issuance for general corporate purposes. The Company redeemed all of the remaining 2025 Notes during the 13 weeks ended April 29, 2023. See "Note Exchanges" below.

The Company did not have the right to redeem the 2025 Notes prior to April 17, 2023. On or after April 17, 2023 and prior to the fortieth scheduled trading day immediately preceding the maturity date, the Company could redeem all or any portion of the 2025 Notes, at its option, for cash, if the last reported sale price of our common stock had been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period.

Note Exchanges

During Fiscal 2022, the Company entered into separate privately negotiated exchange agreements with certain holders of the 2025 Notes, to exchange $403.2 million in aggregate principal amount of the 2025 Notes for a combination of cash and shares of the Company's common stock, plus payment of accrued and unpaid interest (together, the "Note Exchanges").

 

Following the Note Exchanges, the aggregate principal amount of the 2025 Notes was fully redeemed in Fiscal 2023.

 

Interest expense for the 2025 Notes was $0.1 million for Fiscal 2023.

Revolving Credit Facility

In June 2022, the Company amended and restated its Credit Agreement. The Credit Agreement provides senior secured asset-based revolving credit for loans and letters of credit up to $700 million, subject to customary borrowing base limitations. The Credit Facility expires on June 24, 2027.

All obligations under the Credit Facility are unconditionally guaranteed by certain subsidiaries. The obligations under the Credit Agreement are secured by certain assets of the Company and certain subsidiaries.

As of February 1, 2025, there were no outstanding borrowings under the Credit Agreement, and the Company was in compliance with the terms of the Credit Agreement with $12.0 million outstanding in stand-by letters of credit. As of February 3, 2024, there were no outstanding borrowings under the Credit Agreement, and the Company was in compliance with the terms of the Credit Agreement with $7.7 million outstanding in stand-by letters of credit.

Borrowings under the Credit Facility accrue interest at the election of the Company at an adjusted secured overnight financing rate ("SOFR") plus 0.10% plus an applicable margin (ranging from 1.125% to 1.375%) or an alternate base rate plus an applicable margin (ranging from 0.125% to 0.375%), with each such applicable margin being based on average borrowing availability under the Credit Facility. Interest is payable quarterly and at the end of each applicable interest period. The weighted average interest rate for borrowings during Fiscal 2023 was 6.0%. The total interest expense related to the Credit Facility borrowings for the for Fiscal 2023 was $1.1 million.
v3.25.1
Leases
 12 Months Ended
Feb. 01, 2025
Leases [Abstract]  
Leases

9. Leases

The Company leases all store premises, regional distribution facilities, some of its office space and certain information technology and office equipment. These leases are generally classified as operating leases.

Store leases generally provide for a combination of base rentals and contingent rent based on store sales. Additionally, most leases include lessor incentives such as construction allowances and rent holidays. The Company is typically responsible for tenant occupancy costs including maintenance costs, common area charges, real estate taxes, and certain other expenses.

Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement. When measuring operating lease ROU assets and operating lease liabilities after the date of adoption of ASC 842, Leases, the Company only includes cash flows related to options to extend or terminate leases when those options are executed.

Some leases have variable payments. However, because they are not based on an index or rate, they are not included in the measurement of operating lease ROU assets and operating lease liabilities.

When determining the present value of future payments for an operating lease that does not have a readily determinable implicit rate, the Company uses its incremental borrowing rate as of the date of initial possession of the leased asset.

For leases that qualify for the short-term lease exemption, the Company does not record an operating lease liability or operating lease ROU asset. Short-term lease payments are recognized on a straight-line basis over the lease term of 12 months or less.

The following table summarizes expense categories and cash payments for operating leases during the period. It also includes the total non-cash transaction activity for new operating lease ROU assets and related operating lease liabilities entered into during the period.

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

February 3,

 

(In thousands)

 

2025

 

2024

 

Lease costs

 

 

 

 

 

Operating lease costs

 

$

387,560

 

$

335,420

 

Variable lease costs

 

 

115,010

 

 

121,061

 

Short-term leases and other lease costs

 

 

2,281

 

 

45,411

 

Total lease costs

 

$

504,851

 

$

501,892

 

 

 

 

 

 

 

Other information

 

 

 

 

 

Cash paid for operating lease liability

 

$

(387,560

)

$

(403,355

)

New operating lease ROU assets entered into during the period

 

$

559,750

 

$

153,236

 

 

The following table contains the average remaining lease term and discount rate, weighted by outstanding operating lease liability as of the end of the period:

 

Lease term and discount rate

 

February 1, 2025

Weighted-average remaining lease term - operating leases

 

7 years

Weighted-average discount rate - operating leases

 

5.2%

 

The table below is a maturity analysis of the operating leases in effect as of the end of the period. Undiscounted cash flows for finance leases and short-term leases are not material for the periods reported and are excluded from the table below:

 

 

 

Undiscounted
cash flows

 

(In thousands)

 

February 1, 2025

 

Fiscal years:

 

 

 

2025

 

 

367,689

 

2026

 

 

338,191

 

2027

 

 

286,428

 

2028

 

 

244,557

 

2029

 

 

184,835

 

Thereafter

 

 

573,868

 

Total undiscounted cash flows

 

$

1,995,568

 

Less: discount on lease liability

 

 

(549,238

)

Total lease liability

 

$

1,446,330

 
v3.25.1
Accumulated Other Comprehensive Loss
 12 Months Ended
Feb. 01, 2025
Equity [Abstract]  
Other Comprehensive Loss

10. Accumulated Other Comprehensive Loss

The accumulated balances of other comprehensive loss included as part of the Consolidated Statements of Stockholders’ Equity follow:

 

Accumulated

 

 

Other

 

 

Comprehensive

 

(In thousands)

Loss

 

Balance at January 29, 2022

$

(40,845

)

Foreign currency translation gain (1)

 

9,749

 

Loss on long-term intra-entity foreign currency transactions

 

(1,534

)

Balance at January 28, 2023

$

(32,630

)

Foreign currency translation gain (1)

$

17,911

 

Loss on long-term intra-entity foreign currency transactions

$

(1,691

)

Balance at February 3, 2024

$

(16,410

)

Foreign currency translation (loss) (1)

$

(41,493

)

Gain on long-term intra-entity foreign currency transactions

$

1,513

 

Balance at February 1, 2025

$

(56,390

)

 

(1)
Foreign currency translation adjustments are not adjusted for income taxes as they relate to a permanent investment in a subsidiary.
v3.25.1
Share-Based Payments
 12 Months Ended
Feb. 01, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Payments

11. Share-Based Payments

The Company accounts for share-based compensation under the provisions of ASC 718, Compensation – Stock Compensation (“ASC 718”), which requires the Company to measure and recognize compensation expense for all share-based payments at fair value. Total share-based compensation expense included in the Consolidated Statements of Operations for Fiscal 2024, Fiscal 2023, and Fiscal 2022 was $39.6 million ($29.5 million, net of tax), $51.1 million ($36.2 million, net of tax), and $39.0 million ($27.3 million, net of tax), respectively.

 

There was $14.2 million of share-based payment expense, consisting of both time- and performance-based awards, included in gross profit this year. This is compared to $20.1 million of share-based payment expense included in gross profit for Fiscal 2023.

 

There was $25.4 million of share-based payment expense, consisting of time and performance-based awards, included in selling, general, and administrative expenses for Fiscal 2024. This is compared to $31.0 million of share-based payment expense included in selling, general, and administrative expenses for Fiscal 2023.

ASC 718 requires recognition of compensation cost under a non-substantive vesting period approach for awards containing provisions that accelerate or continue vesting upon retirement. Accordingly, for awards with such provisions, the Company

recognizes compensation expense over the period from the grant date to the date that retirement eligibility is achieved, if that is expected to occur during the nominal vesting period. Additionally, for awards granted to retirement-eligible employees, the full compensation cost of an award must be recognized immediately upon grant.

At February 1, 2025, the Company had awards outstanding under two share-based compensation plans, which are described below.

Share-based compensation plans

2023 Stock Award and Incentive Plan (“2023 Plan”)

The 2023 Plan was approved by the Company's stockholders on June 7, 2023. The 2023 Plan authorized 10.6 million shares for issuance, in the form of options, stock appreciation rights (“SARS”), restricted stock, restricted stock units, bonus stock and awards, performance awards, dividend equivalents and other stock-based awards. The 2023 Plan allows the Compensation Committee of the Board of Directors to determine which employees receive awards and the terms and conditions of the awards under the 2023 Plan. The 2023 Plan provides for grants to non-employee directors, which are not to exceed in value of $750,000 in any single fiscal year. As of February 1, 2025, approximately 1.6 million shares of restricted stock and approximately 0.7 million shares of common stock had been granted under the 2023 Plan to employees and non-employee directors. Approximately 30% of the restricted stock awards are performance-based and are earned if the pre-established performance goals are met. The remaining 70% of the restricted stock awards are time-based, of which 95% vest ratably over three years and 5% vest over a period of one to two years.

 

2020 Stock Award and Incentive Plan (“2020 Plan” and, together with the 2023 Plan, the “Plans”)

The 2020 Plan was approved by the stockholders on April 13, 2020. The 2020 Plan authorized 10.2 million shares for issuance, in the form of options, SARS, restricted stock, restricted stock units, bonus stock and awards, performance awards, dividend equivalents and other stock-based awards. The 2020 Plan provides that for awards intended to qualify as “performance-based compensation” under Section 162(m) of the Internal Revenue Code of 1986, as amended, (i) the maximum number of shares awarded to any individual may not exceed 3.0 million shares per year for options and SARS and (ii) no more than 1.5 million shares may be granted with respect to each of restricted shares of stock and restricted stock units (subject to certain adjustments and exceptions provided therein). The 2020 Plan allows the Compensation Committee of the Board to determine which employees receive awards and the terms and conditions of the awards under the 2020 Plan. The 2020 Plan provides for grants to non-employee directors, which are not to exceed in value of $750,000 in any single fiscal year. Through February 3, 2024, approximately 7.2 million shares of restricted stock and approximately 3.4 million shares of common stock had been granted under the 2020 Plan to employees and directors. Approximately 40% of the restricted stock awards are performance-based and are earned if the established performance goals are met. The remaining 60% of the restricted stock awards are time-based, of which 97% vest ratably over three years and 3% vest over a period of one to two years. In connection with the adoption of the 2023 Plan, the 2020 Plan terminated on June 7, 2023 with all rights of the awardees and all unexpired awards continuing in force and operation after the termination.

Stock Option Grants

The Company has granted time-based stock options under the Plans. Time-based stock option awards vest over the requisite service period of the award or to an employee’s eligible retirement date, if earlier.

A summary of the Company’s stock option activity for Fiscal 2024 follows:

 

 

 

Fiscal Year Ending February 1, 2025

 

 

 

 

 

 

Weighted-
Average

 

 

Weighted-
Average
Remaining
Contractual

 

 

Aggregate
Intrinsic

 

 

 

Options

 

 

Exercise Price

 

 

Term

 

 

Value

 

 

 

(In thousands)

 

 

 

 

 

(In years)

 

 

(In thousands)

 

Outstanding - February 3, 2024

 

 

4,213

 

 

$

16.83

 

 

 

 

 

 

 

Granted

 

 

525

 

 

$

24.37

 

 

 

 

 

 

 

Exercised (1)

 

 

(414

)

 

$

14.35

 

 

 

 

 

 

 

Cancelled

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Outstanding - February 1, 2025

 

 

4,324

 

 

$

17.98

 

 

 

3.3

 

 

$

7,777

 

Vested and expected to vest - February 1, 2025

 

 

4,202

 

 

$

17.86

 

 

 

3.2

 

 

$

7,603

 

Exercisable - February 1, 2025 (2)

 

 

1,135

 

 

$

11.12

 

 

 

3.0

 

 

$

5,696

 

 

 

(1)
Options exercised during Fiscal 2024 ranged in price from $8.62 to $17.24.
(2)
Options exercisable represent “in-the-money” vested options based upon the weighted average exercise price of vested options compared to the Company’s stock price on February 1, 2025.

The weighted-average grant date fair value of stock options granted during Fiscal 2024 and Fiscal 2023 was $10.61 and $5.31, respectively. The aggregate intrinsic value of options exercised during Fiscal 2024 and Fiscal 2023 was $3.5 million and $3.6 million, respectively. Cash received from the exercise of stock options and the actual tax benefit realized from share-based payments was $3.8 million and $2.1 million, respectively, for Fiscal 2024. Cash received from the exercise of stock options and the actual tax benefit realized from share-based payments was $7.6 million and ($0.5) million, respectively, for Fiscal 2023.

As of February 1, 2025, there was $0.7 million of unrecognized compensation expense related to non-vested stock option awards that is expected to be recognized over a weighted average period of 1.9 years.

The fair value of stock options was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions:

 

 

 

Fiscal Years Ending

 

 

February 1,

 

February 3,

Black-Scholes Option Valuation Assumptions

 

2025

 

2024

Risk-free interest rate (1)

 

4.4%

 

3.4%

Dividend yield

 

1.9%

 

2.8%

Volatility factor (2)

 

55.4%

 

55.7%

Weighted-average expected term (3)

 

4.5 years

 

4.5 years

 

(1)
Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options.
(2)
Based on the historical volatility of the Company’s common stock.
(3)
Represents the period that options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience.

Restricted Stock Grants

Time-based restricted stock awards are composed of time-based restricted stock units. These awards vest over one to three years. Time-based restricted stock units receive dividend equivalents in the form of additional time-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original awards.

Performance-based restricted stock awards include performance-based restricted stock units. These awards cliff vest at the end of a three-year period based upon the Company’s achievement of pre-established goals throughout the term of the award. Performance-based restricted stock units receive dividend equivalents in the form of additional performance-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original awards.

The grant date fair value of time-based restricted stock awards is based on the closing market price of the Company’s common stock on the date of grant. A Monte Carlo simulation was utilized for performance-based restricted stock awards.

A summary of the activity of the Company’s restricted stock is presented in the following tables:

 

 

 

Time-Based Restricted Stock Units

 

 

Performance-
Based Restricted Stock Units

 

 

 

Fiscal Year Ending

 

 

Fiscal Year Ending

 

 

 

February 1, 2025

 

 

February 1, 2025

 

(Shares in thousands)

 

Shares

 

 

Weighted-Average
Grant Date
Fair Value

 

 

Shares

 

 

Weighted-Average
Grant Date
Fair Value

 

Non-vested - February 3, 2024

 

 

2,830

 

 

$

15.83

 

 

 

2,023

 

 

$

18.45

 

Granted

 

 

1,101

 

 

 

24.03

 

 

 

500

 

 

 

26.95

 

Vested

 

 

(1,214

)

 

 

17.53

 

 

 

(257

)

 

 

38.38

 

Cancelled

 

 

(357

)

 

 

17.32

 

 

 

(48

)

 

 

18.55

 

Non-vested - February 1, 2025

 

 

2,360

 

 

$

18.56

 

 

 

2,218

 

 

$

18.05

 

 

 

As of February 1, 2025, there was $25.1 million of unrecognized compensation expense related to non-vested time-based restricted stock unit awards that is expected to be recognized over a weighted average period of 1.9

years. There was $4.7 million of unrecognized compensation expense related to performance-based restricted stock unit awards that is expected to be recognized over a weighted average period of 1.7 years.

As of February 1, 2025, the Company had 11.0 million shares available for all equity grants.

 

During Fiscal 2024 and Fiscal 2023, the Company repurchased approximately 0.6 million and 0.8 million shares, respectively, from certain employees at market prices totaling $13.8 million and $10.7 million, respectively. These shares were repurchased for the payment of taxes in connection with the vesting of share-based payments, as permitted under our equity incentive plans.

 

The aforementioned share repurchases have been recorded as treasury stock.
v3.25.1
Retirement Plan and Employee Stock Purchase Plan
 12 Months Ended
Feb. 01, 2025
Retirement Benefits [Abstract]  
Retirement Plan and Employee Stock Purchase Plan

12. Retirement Plan and Employee Stock Purchase Plan

The Company maintains a profit sharing and 401(k) plan (the “Retirement Plan”). Under the provisions of the Retirement Plan, full-time employees and part-time employees are automatically enrolled to contribute 3% of their salary if they have attained 20 years of age and have met respective, prescribed service requirements. Full-time employees need to have completed 30 days of service; part-time employees must either complete 1,000 hours of service within a 12-month period or complete 500 hours of service in two consecutive 12-month periods (effective January 1, 2023). Individuals can decline enrollment or can contribute up to 50% of their eligible salary to the 401(k) plan on either a pretax or post-tax (Roth) basis, subject to Internal Revenue Service (“IRS") annual limitations. After one year of service, the Company will match 100% of the first 3% of pay plus an additional 25% of the next 3% of pay that is contributed to the Retirement Plan. Employees are 100% vested in the Company match after two years of Retirement Plan-defined service have been completed. Contributions to the profit-sharing plan, as determined by the Board of Directors, are discretionary. The Company recognized $16.0 million in expense during Fiscal 2024, $21.0 million in Fiscal 2023, and $15.1 million in expense during Fiscal 2022 in connection with the Retirement Plan.

The Employee Stock Purchase Plan is a non-qualified plan that covers all full-time and part-time employees in the U.S. and Canada who are at least 18 years old and have completed 60 days of service. Contributions are determined by the employee ($5 minimum/pay period), with the Company matching 15% of the employee investment up to a maximum employee investment of $100 per pay period. These contributions are used to purchase shares of Company stock in the open market.
v3.25.1
Income Taxes
 12 Months Ended
Feb. 01, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

13. Income Taxes

On December 22, 2017, the U.S. government enacted comprehensive tax legislation in the form of the Tax Cuts and Jobs Act of 2017 (the "Tax Act”). The Tax Act significantly changed U.S. international tax laws for tax years beginning after December 31, 2017 and included a provision designed to currently tax global intangible low-taxed income (“GILTI”) earned by non-U.S. corporate subsidiaries of large U.S. shareholders. The Company has elected to treat GILTI as a period expense, and the effect of the GILTI inclusion for Fiscal 2024 is not material.

The components of income (loss) before income taxes are:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

U.S.

 

$

453,098

 

 

$

208,283

 

 

$

138,023

 

Foreign

 

 

(10,864

)

 

 

31,575

 

 

 

40,471

 

Total

 

$

442,234

 

 

$

239,858

 

 

$

178,494

 

The significant components of the Company’s deferred tax assets and liabilities are as follows:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

(In thousands)

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Operating lease ROU assets

 

$

361,549

 

 

$

305,043

 

Capitalized research and development expenses

 

 

28,121

 

 

 

22,014

 

Employee compensation and benefits

 

 

19,820

 

 

 

25,576

 

Net Operating Loss

 

 

12,470

 

 

 

25,071

 

Accruals not currently deductible

 

 

10,508

 

 

 

10,041

 

Deferred compensation

 

 

10,261

 

 

 

9,737

 

Other long-term assets

 

 

8,145

 

 

 

8,169

 

State tax credits

 

 

6,839

 

 

 

7,741

 

Gift card liability

 

 

6,239

 

 

 

5,723

 

Inventories

 

 

6,231

 

 

 

8,828

 

Impairment of investments

 

 

4,659

 

 

 

4,673

 

Allowance for Doubtful Accounts

 

 

2,180

 

 

 

3,114

 

Other

 

 

1,020

 

 

 

690

 

Foreign tax credits

 

 

955

 

 

 

955

 

General Business Credits

 

 

116

 

 

 

116

 

Gross deferred tax assets

 

$

479,113

 

 

$

437,491

 

Valuation allowance

 

 

(18,998

)

 

 

(27,466

)

Total deferred tax assets

 

$

460,115

 

 

$

410,025

 

Deferred tax liabilities:

 

 

 

 

 

 

Operating lease liabilities

 

$

(319,488

)

 

$

(253,229

)

Property and equipment

 

 

(64,429

)

 

 

(69,030

)

Prepaid expenses

 

 

(5,561

)

 

 

(3,572

)

Goodwill

 

 

(1,937

)

 

 

(1,981

)

Other

 

 

(542

)

 

 

(149

)

Total deferred tax liabilities

 

$

(391,957

)

 

$

(327,961

)

Total deferred tax assets, net

 

$

68,158

 

 

$

82,064

 

 

The change in net deferred tax assets was primarily due to a decrease in the net deferred tax asset of Operating lease ROU assets, Operating lease liabilities and, net operating loss partially offset by a decrease in valuation allowance.

As of February 1, 2025, the Company had deferred tax assets related to federal, state and foreign net operating loss carryovers of $5.5 million, $5.7 million and $1.3 million, respectively, that could be utilized to reduce future years’ tax liabilities. A portion of these net operating loss carryovers expire in future years, and some have an indefinite carryforward period. Management believes it is more likely than not that a portion of state net operating loss and the foreign net operating loss carryovers will not reduce future years’ tax liabilities in certain jurisdictions. As such, valuation allowances of $2.9 million and $2.8 million have been recorded on the deferred tax assets related to a portion of the state net operating loss carryovers as of February 1, 2025 and February 3, 2024, respectively. Further, valuation allowances of $1.3 million and $9.4 million have been recorded on the deferred tax assets related to the cumulative foreign net operating loss carryovers as of February 1, 2025 and February 3, 2024, respectively. We also provided for valuation allowances of a nominal amount as of February 3, 2024, related to other foreign deferred tax assets.

The Company had foreign tax credit carryovers in the amount of $1.0 million as of both February 1, 2025 and February 3, 2024. The foreign tax credit carryovers begin to expire in Fiscal 2028 to the extent not utilized. Management believes it is more likely than not that a certain category of foreign tax credit carryover will not reduce future years’ tax liabilities. As such, valuation allowances of $1.0 million have been recorded on the deferred tax assets related to the foreign tax credit carryovers as of both February 1, 2025 and February 3, 2024.

The Company had state income tax credit carryforwards of $6.8 million and $8.0 million (net of federal tax) as of February 1, 2025 and February 3, 2024, respectively. These income tax credits can be utilized to offset future state income taxes, with the majority having a carryforward period of 16 years. They have started to expire in Fiscal 2024 and the deferred tax asset has been adjusted accordingly. Management believes it is more likely than not that a portion of the state income tax credit carryovers will not reduce future years’ tax liabilities in certain jurisdictions. As such, valuation allowances of $1.0 million and $1.5 million have been recorded on the deferred tax assets related to the cumulative state income tax credit carryovers as of February 1, 2025 and February 3, 2024, respectively.

The Company had U.S. federal and state impairments of investments of $4.7 million and $4.6 million as of February 1, 2025 and February 3, 2024, respectively. Management believes that it is more likely than not that these impairments of investments will not reduce future years’ tax liabilities. As such, valuation allowances of $4.7 million and $4.6 million have been recorded as of February 1, 2025 and February 3, 2024, respectively, on the deferred tax asset attributable to these impairments of investments. The Company recorded deferred tax assets of $8.1 million and $8.2 million of February 1, 2025 and February 3, 2024, respectively, for other long-term assets related to the acquisition of Quiet Logistics, Inc. and certain other strategic investments. Management believes that it is more likely than not that these other long-term assets will not reduce future years’ tax liabilities. As such, valuation allowances of $8.1 million and $8.2 million were recorded as of February 1, 2025 and February 3, 2024, respectively for the deferred tax asset attributable to these assets.

Significant components of the provision (benefit) for income taxes are as follows:

 

 

 

Fiscal Years Ending

 


 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

32,249

 

 

$

66,112

 

 

$

(986

)

Foreign taxes

 

 

52,224

 

 

 

27,958

 

 

 

19,701

 

State

 

 

18,633

 

 

 

19,206

 

 

 

3,594

 

Total current

 

 

103,106

 

 

 

113,276

 

 

 

22,309

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

$

9,940

 

 

$

(31,602

)

 

$

26,758

 

Foreign taxes

 

 

(3,766

)

 

 

(6,317

)

 

 

(1,374

)

State

 

 

3,574

 

 

 

(5,537

)

 

 

5,665

 

Total deferred

 

 

9,748

 

 

 

(43,456

)

 

 

31,049

 

Provision for income taxes

 

$

112,854

 

 

$

69,820

 

 

$

53,358

 

 

As of February 1, 2025, the undistributed earnings of the Company’s foreign subsidiaries were approximately $175.7 million. The Company intends to permanently reinvest a portion of its earnings outside of the U.S. for the foreseeable future. On the remaining earnings, the Company has not recognized deferred tax expense because it expects any potential distribution to be made from previously taxed earnings, or qualify for the 100% dividends received deduction, along with negligible foreign withholding taxes.

The following table summarizes the activity related to our unrecognized tax benefits:

 

 

 

Fiscal Years Ending

 


 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Unrecognized tax benefits, beginning of the year
   balance

 

$

3,974

 

 

$

2,478

 

 

$

3,259

 

Increases in current period tax positions

 

 

157

 

 

 

2,371

 

 

 

681

 

Increases in tax positions of prior periods

 

 

16,428

 

 

 

10

 

 

 

—

 

Settlements

 

 

(10,620

)

 

 

(275

)

 

 

(454

)

Lapse of statute of limitations

 

 

(73

)

 

 

(75

)

 

 

(277

)

Decreases in tax positions of prior periods

 

 

(32

)

 

 

(535

)

 

 

(731

)

Unrecognized tax benefits, end of the year balance

 

$

9,834

 

 

$

3,974

 

 

$

2,478

 

 

As of February 1, 2025, the gross amount of unrecognized tax benefits was $9.8 million, of which $9.0 million would affect the effective income tax rate if recognized. The gross amount of unrecognized tax benefits as of February 3, 2024 was $4.0 million, of which $3.6 million would affect the effective income tax rate if recognized.

Unrecognized tax benefits increased by $5.9 million during Fiscal 2024 and $1.5 million during Fiscal 2023. Over the next 12 months, the Company believes that it is reasonably possible that the unrecognized tax benefits could decrease by as much as $5.0 million as a result of federal and state tax settlements, statute of limitations lapses, and other changes to the reserves.

The Company records accrued interest and penalties related to unrecognized tax benefits in income tax expense. Accrued interest and penalties related to unrecognized tax benefits included in the Consolidated Balance Sheets were $1.4 million and $0.8 million as of February 1, 2025 and February 3, 2024, respectively. The amount of interest and penalties related to unrecognized tax benefits recognized in the provision for income taxes was $7.3 million for Fiscal 2024. An immaterial amount was recognized for both Fiscal 2023 and Fiscal 2022.

The Company and its subsidiaries file income tax returns in the U.S. and various state and foreign jurisdictions. The IRS has completed examinations through February 1, 2020. With respect to state and local jurisdictions and countries outside of the U.S., with limited exceptions, generally, the Company and its subsidiaries are no longer subject to income tax audits for tax years before Fiscal 2018 (ended February 2, 2019). Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, interest, and penalties have been provided for any adjustments that are expected to result from these years.

A reconciliation between the statutory federal income tax rate and the effective income tax rate follows:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

 

 

2025

 

 

2024

 

 

2023

 

Federal income tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes, net of federal income tax effect

 

 

3.7

 

 

 

4.4

 

 

 

3.6

 

Foreign rate differential

 

 

0.6

 

 

 

0.2

 

 

 

0.9

 

International provisions of Tax Act

 

 

(1.3

)

 

 

(2.2

)

 

 

0.1

 

Valuation allowance changes, net

 

 

0.7

 

 

 

0.5

 

 

 

0.5

 

Non-deductible executive compensation

 

 

1.3

 

 

 

3.8

 

 

 

2.0

 

Change in unrecognized tax benefits

 

 

0.7

 

 

 

0.8

 

 

 

(0.1

)

Share Based Payments

 

 

(0.5

)

 

 

0.2

 

 

 

(0.2

)

Note Exchanges

 

 

0.0

 

 

 

0.0

 

 

 

1.4

 

Non-deductible goodwill

 

 

0.0

 

 

 

3.5

 

 

 

0.0

 

Federal Credits

 

 

(0.8

)

 

 

(2.1

)

 

 

(0.4

)

Other

 

 

0.1

 

 

 

(1.0

)

 

 

1.1

 

 

 

 

25.5

%

 

 

29.1

%

 

 

29.9

%

 

The Company recorded income tax expense of $112.9 million (an effective tax rate of 25.5%) in Fiscal 2024, and income tax expense of $69.8 million (an effective tax rate of 29.1%) in Fiscal 2023.
v3.25.1
Segment Reporting
 12 Months Ended
Feb. 01, 2025
Segment Reporting [Abstract]  
Segment Reporting

14. 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 (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.

 

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, 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:

For the year ended February 1, 2025 (In thousands)

 

American Eagle

 

 

Aerie

 

 

Other

 

 

Intersegment Elimination

 

 

Total

 

Net Revenue

 

$

3,385,231

 

 

$

1,738,414

 

 

$

243,907

 

 

$

(38,900

)

 

$

5,328,652

 

Cost of sales, including certain buying, occupancy and warehousing costs

 

 

1,976,914

 

 

 

1,018,418

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

727,590

 

 

 

345,054

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

74,220

 

 

 

59,097

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

606,507

 

 

$

315,845

 

 

$

(53,722

)

 

$

-

 

 

$

868,630

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(423,766

)

Impairment, restructuring and other charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(17,561

)

Total operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

427,303

 

Interest (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,769

)

Other (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,162

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

442,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended February 3, 2024 (In thousands)

 

American Eagle

 

 

Aerie

 

 

Other

 

 

Intersegment Elimination

 

 

Total

 

Net Revenue

 

$

3,361,579

 

 

$

1,670,000

 

 

$

489,056

 

 

$

(258,865

)

 

$

5,261,770

 

Cost of sales, including certain buying, occupancy and warehousing costs

 

 

1,955,069

 

 

 

1,009,650

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

729,519

 

 

 

323,239

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

77,195

 

 

 

61,249

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

599,796

 

 

$

275,862

 

 

$

(36,124

)

 

$

-

 

 

$

839,534

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(464,172

)

Impairment, restructuring and other charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(152,645

)

Total operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

222,717

 

Interest (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,190

)

Other (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,951

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

239,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended January 28, 2023 (In thousands)

 

American Eagle

 

 

Aerie

 

 

Other

 

 

Intersegment Elimination

 

 

Total

 

Net Revenue

 

$

3,262,893

 

 

$

1,506,798

 

 

$

469,371

 

 

$

(249,229

)

 

$

4,989,833

 

Cost of sales, including certain buying, occupancy and warehousing costs

 

 

1,977,216

 

 

 

999,654

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

677,451

 

 

 

285,756

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

66,820

 

 

 

53,921

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

541,406

 

 

$

167,467

 

 

$

(56,793

)

 

$

-

 

 

$

652,080

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(382,824

)

Impairment, restructuring and other charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(22,209

)

Total operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

247,047

 

Debt related charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64,721

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,297

 

Other (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,465

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

178,494

 

 

(1) Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.

 

 

Fiscal Years Ending

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

 

 

 

    American Eagle

$

86,953

 

 

$

61,139

 

 

$

85,033

 

    Aerie

$

68,541

 

 

$

40,746

 

 

$

107,084

 

    Other

$

11,965

 

 

$

32,235

 

 

$

32,717

 

   General corporate expenditures

$

55,114

 

 

$

40,317

 

 

$

35,544

 

Total Capital Expenditures

$

222,573

 

 

$

174,437

 

 

$

260,378

 

 

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

Total net revenue for the American Eagle and Aerie reportable segments 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 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Total net revenue:

 

 

 

 

 

 

 

 

 

United States

 

$

4,492,630

 

 

$

4,424,345

 

 

$

4,268,114

 

Foreign (1)

 

 

836,022

 

 

 

837,425

 

 

 

721,719

 

Total net revenue

 

$

5,328,652

 

 

$

5,261,770

 

 

$

4,989,833

 

 

(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 1,

 

 

February 3,

 

(In thousands)

 

2025

 

 

2024

 

Long-lived assets, net:

 

 

 

 

 

 

United States

 

$

1,887,502

 

 

$

1,521,392

 

Foreign

 

 

159,162

 

 

 

468,649

 

Total long-lived assets, net

 

$

2,046,664

 

 

$

1,990,041

 
v3.25.1
Impairment, Restructuring and Other Charges
 12 Months Ended
Feb. 01, 2025
Restructuring and Related Activities [Abstract]  
Impairment, Restructuring and Other Charges

15. Impairment, Restructuring and Other Charges

The following table represents impairment, restructuring and other charges. All amounts were recorded within impairment, restructuring and other charges on the Consolidated Statements of Operations, unless otherwise noted.

 

 

 

For the year ended

 

 

 

February 1,

 

(In thousands)

 

2025

 

Corporate restructuring costs (1)

 

 

10,729

 

Hong Kong retail operations impairment and restructuring costs (2)

 

 

6,832

 

Total impairment, restructuring and other charges

 

$

17,561

 

The following footnotes relate to the impairment and restructuring charges in the third quarter of Fiscal 2024:

(1)
The Company recorded restructuring costs of $10.7 million related to employee severance.
(2)
The Company recorded impairment and restructuring costs of $6.8 million related to the sale of the Company's Hong Kong retail operations to a third-party buyer. These costs primarily consist of impairment of $6.4 million and employee severance.

 

 

 

Fiscal Years Ending

 

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2024

 

 

2023

 

Charges recorded in cost of sales:

 

 

 

 

 

 

       Inventory charges (1)

 

$

10,950

 

 

 

—

 

 

 

 

 

 

 

 

Charges recorded in operating expenses:

 

 

 

 

 

 

    Quiet Platforms impairment, restructuring and other charges (2)

 

 

119,572

 

 

$

3,844

 

International impairment and restructuring costs (3)

 

 

10,882

 

 

 

7,997

 

    Corporate impairment and restructuring charges (4)

 

 

11,241

 

 

 

-

 

U.S. and Canada store impairment charges(5)

 

 

-

 

 

 

10,368

 

Total impairment, restructuring and other charges

 

$

141,695

 

 

$

22,209

 

 

 

 

 

 

 

 

Total Company impairment, restructuring and other charges

 

$

152,645

 

 

$

22,209

 

 

The following footnotes relate to the impairment, restructuring and other charges in Fiscal 2023 and Fiscal 2022:

 

(1)
$11.0 million of inventory write-down charges related to our international businesses as further described in paragraph 1 of note (3) below.

 

(2)
$119.6 million of charges related to the Quiet Platforms restructuring. Of this amount, we impaired definite lived intangible assets of $40.5 million consisting of $31.2 million of customer relationships and $9.3 million of trade names. We also impaired $39.6 million of goodwill. We recorded $24.7 million of long-term asset impairment primarily related to technology which is no longer a part of the long-term strategy. All impairments were recorded due to insufficient prospective cash flows to support the asset value, resulting from the restructuring of Quiet Platforms. We recorded $9.9 million of severance based on this revised strategy. We also recorded $4.9 million of contract related charges.

 

For Fiscal 2022, impairment of $2.8 million consisting of $2.3 million of ROU asset and $0.5 million of property and equipment related to the closure of the Jacksonville, FL distribution center and severance of $1.0 million related to employees of that distribution center. The Jacksonville distribution center was replaced with a higher productivity location in Atlanta, GA.

 

(3)
$10.9 million of charges related to exiting the Japan market, including the closure of all 4 stores in January 2024, as well as impairment related to our Hong Kong retail operations. Of this amount, $4.7 million related to Japan ROU assets, $3.6 million of Japan store property and equipment, $1.3 million of Hong Kong store ROU assets, and $1.3 million of employee severance. All impairments were recorded due to insufficient prospective cash flows to support the asset values. Additionally, we recorded $11.0 million of inventory write-down charges related to restructuring our international operations, which was recorded separately in Cost of Sales and discussed in note (1) above.

 

For Fiscal 2022, $7.5 million of store impairment due to insufficient prospective cash flows to support the asset values and $0.5 million of severance related to down-sizing Hong Kong retail operations.

 

 

(4)
$11.2 million, consisting of $6.0 million of employee severance related to corporate realignment and other asset impairment of $5.2 million of investments related to further strategic business changes.

 

 

(5)
For Fiscal 2022, $10.4 million of impairment charges, consisting of $9.2 million of ROU assets and $1.2 million of store property and equipment related to insufficient cash flows to support the asset value in the U.S. and Canada.

 

 

A rollforward of the restructuring liabilities recognized in the Consolidated Balance Sheet is as follows:

 

 

 

 

 

For the year ended

 

 

 

 

 

February 1,

 

(In thousands)

 

 

 

2025

 

Accrued liability as of February 3, 2024

 

 

 

$

11,414

 

Add: Costs incurred, excluding non-cash charges

 

 

 

 

10,728

 

Less: Cash payments and adjustments

 

 

 

 

(14,492

)

Accrued liability as of February 1, 2025

 

 

 

$

7,650

 
v3.25.1
Subsequent Events
 12 Months Ended
Feb. 01, 2025
Subsequent Events [Abstract]  
Subsequent Events

16. Subsequent Events

 

On March 11, 2025, the Company’s Board of Directors authorized 50 million additional shares for repurchase as part of its existing share repurchase program, which was previously announced in February 2024. Including this additional authorization, as of March 11, 2025, the Company had a total of 68.5 million shares remaining authorized for repurchase through February 3, 2029.


On March 14, 2025, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with Bank of America, N.A. (“Bank of America”) to repurchase an aggregate of $200 million of the Company’s common stock.

 

Pursuant to the terms of the ASR Agreement, on March 17, 2025, the Company made an aggregate payment of $200 million to Bank of America and received an aggregate initial delivery of approximately 14.5 million shares of its common stock, representing approximately 80% of the total shares that are expected to be repurchased under the ASR. The exact number of shares the Company ultimately will repurchase under the ASR Agreement will be based generally on the average of the daily volume-weighted average price per share of the common stock during the repurchase period, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreement. At settlement, under certain circumstances, Bank of America may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required either to deliver shares of common stock or to make a cash payment to Bank of America. Final settlement of the transactions under the ASR Agreement is expected to occur by the end of the second quarter of Fiscal 2025.

 

The foregoing description of the ASR Agreement does not purport to be complete and is qualified in its entirety by reference to the ASR Agreement, which is filed as Exhibit 10.32 to this Annual Report and is incorporated herein by reference.


The Company expects to fund the cash portion of the consideration payable under the ASR agreement using available cash on hand and borrowings under the Company’s existing $700 million Credit Facility.
v3.25.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Principles of Consolidation

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries and consolidated entities where the Company's ownership percentage is less than 100%. Non-controlling interests are included as a component of contributed capital within the Consolidated Balance Sheets and Consolidated Statements of Stockholders' Equity and was not material for any period presented. All intercompany transactions and balances have been eliminated in consolidation. At February 1, 2025, the Company operated in two reportable segments, American Eagle and Aerie.
Fiscal Year

Fiscal Year

Our fiscal year is a 52- or 53-week year that ends on the Saturday nearest to January 31. As used herein, "Fiscal 2027" refers to the 52-week period that will end on January 29, 2028. "Fiscal 2025" refers to the 52 week period that will end on January 31, 2026. "Fiscal 2024" refers to the 52-week period ended February 1, 2025. “Fiscal 2023” refers to the 53-week period ended February 3, 2024. “Fiscal 2022” refers to the 52-week period ended January 28, 2023.
Estimates

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, our management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt with Conversion and Other Options (“ASU 2020-06”), which simplifies the accounting for convertible debt instruments. The new guidance eliminates two of the three models in Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options that require separating embedded conversion features from convertible

instruments. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share (“EPS”) calculation. The guidance is effective for fiscal years beginning after December 15, 2021. The Company adopted ASU 2020-06 effective January 30, 2022 under the modified retrospective method.

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which requires that segment expenses deemed significant to the chief operating decision maker (CODM) typically incorporated in measuring profit or loss of the segment should be disclosed. The guidance also requires that the difference between segment revenues and these significant segment expenses is disclosed. Any annually disclosed segment information is now required to be reported in interim periods as well. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Public entities are required to apply the amendment retrospectively to prior periods presented in the financial statements. The Company adopted ASU 2023-07 effective for its Fiscal year 2024 and for the interim periods beginning in Fiscal 2025.

Refer to Note 14, Segment Reporting, to the Consolidated Financial Statements for additional information regarding Segment Reporting.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures ("ASU 2023-09"), which requires increased transparency in tax disclosures, specifically by expanding requirements for rate reconciliation and income taxes paid information. Additionally, the amendment requires disclosures of income/(loss) from continuing operations before taxes disaggregated between domestic and foreign, and income tax expense/(benefit), disaggregated by federal, state, and foreign. Disclosure requirements about the nature and estimated range of the reasonably possible change in unrecognized tax benefits over the next year have been removed as part of this amendment. The guidance is effective for fiscal years beginning after December 15, 2024. The Company plans to adopt ASU 2023-09 effective for Fiscal 2025.

Refer to Note 13, Income Taxes, to the Consolidated Financial Statements for additional information regarding Income Taxes.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires disclosure of additional information for specific expense categories in the notes to financial statements for interim and annual periods. Specifically, the amendment requires quantitative disclosure for purchases of inventory, employee compensation, depreciation, and intangible asset amortization within an expense caption. For any remaining amounts within an expense caption, a qualitative description must be included. In all reporting periods, a total selling expense amount must be disclosed, with an annual disclosure of the entity's definition of selling expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The Company plans to adopt ASU 2024-03 effective for Fiscal 2027.

Foreign Currency Translation

Foreign Currency Translation

In accordance with ASC 830, Foreign Currency Matters, the Company translates assets and liabilities denominated in foreign currencies into U.S. dollars (“USD”) (the reporting currency) at the exchange rates prevailing at the balance sheet date. The Company translates revenues and expenses denominated in foreign currencies into USD at the monthly average exchange rates for the period. Gains or losses resulting from foreign currency transactions are included in the consolidated results of operations, whereas related translation adjustments are reported as an element of other comprehensive income (loss) in accordance with ASC 220, Comprehensive Income. Refer to Note 10, Accumulated Other Comprehensive Loss, to the Consolidated Financial Statements for information regarding accumulated other comprehensive income (loss).
Cash and Cash Equivalents and Short-term Investments

Cash and Cash Equivalents and Short-term Investments

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Short-term investments classified as available-for-sale include certificates of deposit with an original maturity greater than three months, but less than one year.

Refer to Note 3, Cash and Cash Equivalents and Short-term Investments, to the Consolidated Financial Statements for information regarding cash and cash equivalents, and short-term investments.
Accounts Receivable

Accounts Receivable

The Company's receivables are primarily generated from product sales and royalties from our licensees. The primary indicators of the credit quality of our receivables are aging, payment history, economic sector information and outside credit monitoring, and are assessed on a quarterly basis. Our credit loss exposure is mainly concentrated in our accounts receivable portfolio. Our allowance for credit losses is calculated using a loss-rate method based on historical experience, current market conditions and reasonable forecasts. For Fiscal 2024, we did not observe a significant deterioration of our receivable portfolio that required a significant increase in our allowance for credit losses. As of February 1, 2025 and February 3, 2024, our allowance for credit losses was $8.9 million and $12.7 million, respectively.
Merchandise Inventory

Merchandise Inventory

Merchandise inventory is valued at the lower of average cost or net realizable value, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company records merchandise receipts when control of the merchandise has transferred to the Company.

The Company reviews its inventory levels to identify slow-moving merchandise and generally uses markdowns to clear merchandise. Additionally, the Company estimates a markdown reserve for future planned permanent markdowns related to current inventory. Markdowns may occur when inventory exceeds customer demand for reasons of style, seasonal adaptation, changes in customer preference, lack of consumer acceptance of fashion items, or competition, or if it is determined that the inventory in stock will not sell at its currently ticketed price. Such markdowns may have a material adverse impact on earnings, depending on the extent and amount of inventory affected.

The Company also estimates a shrinkage reserve for the period between the last physical count and the balance sheet date. The estimate for the shrinkage reserve, based on historical results, can be affected by changes in merchandise mix and changes in actual shrinkage trends.
Property and Equipment

Property and Equipment

Property and equipment are recorded on the basis of cost with depreciation computed utilizing the straight-line method over the assets’ estimated useful lives. The useful lives of our major classes of assets are as follows:

 

Buildings

25 years

Leasehold improvements

Lesser of 10 years or the term of the lease

Fixtures and equipment

Five years

Information technology

Three to five years

 

As of February 1, 2025, the weighted average remaining useful life of our assets was approximately six years.

In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), the Company’s management evaluates the value of leasehold improvements, store fixtures, and operating lease right-of-use ("ROU") assets associated with retail stores. The Company evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified. Impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the projected undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts. When events such as these occur, the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of operating income within impairment, restructuring, and other charges in the Consolidated Statements of Operations.

Our impairment loss calculations require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values. The significant assumptions used in our fair value analysis are forecasted revenue and market rent. We do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate long-lived asset impairment losses. However, if actual results are not consistent with our estimates and assumptions, our consolidated operating results could be adversely affected.

When the Company closes, remodels, or relocates a store prior to the end of its lease term, the remaining net book value of the assets related to the store is recorded as a write-off of assets within depreciation and amortization expense.

Refer to Note 6, Property and Equipment, Net, to the Consolidated Financial Statements for additional information regarding property and equipment, and refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2024, Fiscal 2023, and Fiscal 2022.
Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company’s goodwill is primarily related to the acquisitions of its regionalized fulfillment center network, as well as its importing operations and Canadian business, and represents the excess of cost over fair value of net assets of businesses acquired. In accordance with ASC 350, Intangibles – Goodwill and Other, the Company evaluates goodwill for possible impairment at least annually as of the last day of the fiscal year and upon occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of a reporting unit may be below its carrying value. If the carrying value of the reporting unit exceeds the fair value, an impairment charge is recorded in the period of the evaluation based on that difference. The Company last performed an annual goodwill impairment test as of February 1, 2025. No indicators of impairment were present during Fiscal 2024 or Fiscal 2022. In Fiscal 2023, the Company concluded that the goodwill assigned to the Quiet Platforms reporting unit was impaired, resulting in a charge of $39.6 million recorded within impairment, restructuring and other charges on the Consolidated Statements of Operations, due to insufficient prospective cash flows to support the carrying value of the business. Significant, subjective assumptions used in the Company's fair value estimate included forecasted cost of sales, forecasted operating expense and discount rate.

Definite-lived intangible assets are initially recorded at fair value, with amortization computed utilizing the straight-line method over the assets’ estimated useful lives. The Company’s definite-lived intangible assets, which consist primarily of trademark assets, are generally amortized over 10 to 15 years.

The Company evaluates definite-lived intangible assets for impairment in accordance with ASC 360 when events or circumstances indicate that the carrying value of the asset may not be recoverable. Such an evaluation includes the estimation of undiscounted future cash flows to be generated by those assets. If the sum of the estimated future undiscounted cash flows is less than the carrying amounts of the assets, then the assets are impaired and are adjusted to their estimated fair value. No definite-lived intangible asset impairment charges were recorded during Fiscal 2024 or Fiscal 2022. During Fiscal 2023, the Company recorded a $40.5 million impairment charge within impairment, restructuring, and other charges on the Consolidated Statements of Operations, related to the definite-lived intangible assets of Quiet Platforms, due to insufficient prospective cash flows to support the carrying value of the assets.

Refer to Note 7, Goodwill and Intangible Assets, Net, to the Consolidated Financial Statements for additional information regarding goodwill and intangible assets and refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2023
Equity Method Investments

Equity Method Investments

During Fiscal 2024, the Company entered into a Limited Partnership Agreement of ACON Apparel Investors, L.P. (the "Fund"), with ACON Apparel GenPar, LLC. ("ACON") as the general partner. The Company paid $35.0 million for a 20% interest for its limited partner position in the Fund, which is recorded in Other Assets in the Consolidated Balance Sheet.
Construction Allowances

Construction Allowances

As part of certain lease agreements for retail stores, the Company receives construction allowances from lessors, which are generally composed of cash amounts. The Company records a receivable and an adjustment to the operating lease ROU asset at the lease commencement date (date of initial possession of the store). The deferred lease credit is amortized as part of the single lease cost over the term of the original lease (including the pre-opening build-out period). The receivable is reduced as amounts are received from the lessor.
Self-Insurance Liability

Self-Insurance Liability

The Company uses a combination of insurance and self-insurance mechanisms for certain losses related to employee medical benefits and worker’s compensation. Costs for self-insurance claims filed and claims incurred but not reported are accrued based on known claims and historical experience. Management believes that it has adequately reserved for its self-insurance liability, which is capped by stop-loss contracts with insurance companies. However, any significant variation of future claims from historical trends could cause actual results to differ from the accrued liability.
Leases

Leases

The Company leases all store premises, its Canadian distribution center in Mississauga, Ontario, its regional distribution facilities, some of its office space and certain information technology and office equipment. These leases are generally classified as operating leases.

Store leases generally provide for a combination of base rentals and contingent rent based on store sales. Additionally, most leases include lessor incentives such as construction allowances and rent holidays. The Company is typically responsible for tenant occupancy costs including maintenance costs, common area charges, real estate taxes and certain other expenses. When measuring operating lease ROU assets and operating lease liabilities, the Company only includes cash flows related to options to extend or terminate leases once those options are executed.

Some leases have variable payments. However, because they are not based on an index or rate, they are not included in the measurement of operating lease ROU assets and operating lease liabilities.

When determining the present value of future payments for an operating lease that does not have a readily determinable implicit rate, the Company uses its incremental borrowing rate as of the date of initial possession of the leased asset.

For leases that qualify for the short-term lease exemption, the Company does not record an operating lease liability or operating lease ROU asset. Short-term lease payments are recognized on a straight-line basis over the lease term of 12 months or less.

Refer to Note 9, Leases, to the Consolidated Financial Statements for additional information.
Co-Branded and Private Label Credit Cards

Co-Branded and Private Label Credit Cards

The Company offers a co-branded credit card and a private-label credit card under the AE and Aerie brands. These credit cards are issued by a third-party bank (the “Bank”) in accordance with a credit card agreement (the “Agreement”). The Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. We receive funding from the Bank based on the Agreement and card activity, which includes payments for new account activations and usage of the credit cards. We recognize revenue for this funding as we fulfill our performance obligations under the Agreement. This revenue is recorded in other revenue, which is a component of total net revenue in our Consolidated Statements of Operations.
Customer Loyalty Program

Customer Loyalty Program

The Company offers a highly digitized loyalty program called Real Rewards by American Eagle and Aerie™ (the “Program”). The Program features a variety of benefits for loyalty members and credit card members. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn dollar rewards in the form of discount savings certificates. Rewards earned are valid through the stated expiration date, which is 60 days from the issuance date of the reward. Rewards not redeemed during the 60-day redemption period are forfeited.

Points earned under the Program on purchases at AE and Aerie are accounted for in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). The portion of the sales revenue attributed to the reward points is deferred and recognized when the reward is redeemed or when the points expire, using the relative stand-alone selling price method. Additionally, reward points earned using the co-branded credit card on non-AE or Aerie purchases are accounted for in accordance with ASC 606. As the points are earned, a current liability is recorded for the estimated cost of the reward, and the impact of adjustments is recorded in revenue.

The Company defers a portion of the sales revenue attributed to the loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606.
Sales Return Reserve

Sales Return Reserve

Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages.

 

 

 

Fiscal Years Ending

 

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

 

Beginning balance

 

$

10,766

 

 

$

10,369

 

 

$

9,168

 

 

Returns

 

 

(161,891

)

 

 

(161,833

)

 

 

(150,987

)

 

Provisions

 

 

160,801

 

 

 

162,230

 

 

 

152,188

 

 

Ending balance

 

$

9,676

 

 

$

10,766

 

 

$

10,369

 

 

 

The presentation on a gross basis consists of a separate right of return asset and liability. These amounts are recorded within (i) prepaid expenses and other and (ii) other current liabilities and accrued expenses, respectively, on the Consolidated Balance Sheets.
Long-Term Debt

Long-Term Debt

In April 2020, the Company issued $415 million aggregate principal amount of convertible senior notes due 2025 (the "2025 Notes"). In accordance with ASU 2020-06, the 2025 Notes were accounted for as a single balance in long-term debt beginning in Fiscal 2022, throughout their final redemption in Fiscal 2023.

In June 2022, the Company entered into an amended and restated credit agreement (the “Credit Agreement”). The Credit Agreement provides senior secured asset-based revolving credit for loans and letters of credit up to $700 million, subject to customary borrowing base limitations (the "Credit Facility"). The Credit Facility expires on June 24, 2027.

Refer to Note 8, Long-Term Debt, Net, to the Consolidated Financial Statements for additional information regarding Long-Term Debt.

Income Taxes

Income Taxes

The Company calculates income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires the use of the liability method. Under this method, deferred tax assets and liabilities are recognized based on the difference between the Consolidated Financial Statements carrying amounts of existing assets and liabilities and their respective tax bases as computed pursuant to ASC 740. Deferred tax assets and liabilities are measured using the tax rates, based on certain judgments regarding enacted tax laws and published guidance in effect in the years when those temporary differences are expected to reverse. A valuation allowance is established against the deferred tax assets when it is more likely than not that some portion or all of the deferred taxes may not be realized. Changes in the Company’s level and composition of earnings, tax laws or the deferred tax valuation allowance, as well as the results of tax audits may materially impact the Company’s effective income tax rate.

The Company evaluates its income tax positions in accordance with ASC 740, which prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction. Under ASC 740, a tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable based on its technical merits.

The calculation of deferred tax assets and liabilities, as well as the decision to recognize a tax benefit from an uncertain position and to establish a valuation allowance requires management to make estimates and assumptions. The Company believes that its estimates and assumptions are reasonable, although actual results may have a positive or negative material impact on the balances of deferred tax assets and liabilities, valuation allowances or net income.

Refer to Note 13, Income Taxes, to the Consolidated Financial Statements for additional information.
Accelerated Share Repurchase Agreement

Accelerated Share Repurchase Agreement

On June 3, 2022, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with JPMorgan Chase Bank (“JPM”). Pursuant to the terms of the ASR Agreement, on June 3, 2022, the Company paid $200.0 million in cash and received an initial delivery of 13.4 million shares of its common stock on June 3, 2022. At final settlement, on July 28, 2022, an additional 3.7 million shares were received. The cumulative repurchase under the ASR Agreement was 17.0 million shares repurchased at an average price per share of $11.75. The aforementioned shares have been recorded as treasury stock.
Revenue Recognition

Revenue Recognition

The Company recognizes revenue pursuant to ASC 606. Revenue is recorded for store sales upon the purchase of merchandise by customers. The Company’s e-commerce operation records revenue upon the customer receipt date of the merchandise. Shipping and handling revenues are included in total net revenue. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Company’s Consolidated Balance Sheets.

The Company recognizes royalty revenue generated from its license or franchise agreements based on a percentage of merchandise sales by the licensee/franchisee. This revenue is recorded as a component of total net revenue when earned and collection is probable.

The Company defers a portion of the sales revenue attributed to loyalty points and recognizes revenue when the points are redeemed or expire, consistent with the requirements of ASC 606. Refer to “Customer Loyalty Program” above for additional information.

Revenue associated with Quiet Platforms is recognized as the services are performed.
Cost of Sales, Including Certain Buying, Occupancy and Warehousing Expenses

Cost of Sales, Including Certain Buying, Occupancy, and Warehousing Expenses

Cost of sales consists of merchandise costs, including design costs, sourcing, importing and inbound freight costs, as well as markdowns, shrinkage and certain promotional costs (collectively, “merchandise costs”); Quiet Platforms' costs to service its customers; and buying, occupancy and warehousing costs and services.

Design costs are related to the Company's design center operations and include compensation, travel and entertainment, supplies and samples for our design teams, as well as rent and depreciation for our design center. These costs are included in cost of sales as the respective inventory is sold.

Buying, occupancy and warehousing costs and services consist of compensation, employee benefit expenses and travel and entertainment for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving and inspection costs; and shipping and handling costs related to our e-commerce operation. Gross profit is the difference between total net revenue and cost of sales.
Selling, General and Administrative Expenses

Selling, General, and Administrative Expenses

Selling, general and administrative expenses consist of compensation and employee benefit expenses, including salaries, incentives and related benefits associated with our stores and corporate headquarters. Selling, general and administrative expenses also include advertising costs, supplies for our stores and home office, communication costs, travel and entertainment, leasing costs and services purchased.

Selling, general and administrative expenses do not include compensation, employee benefit expenses and travel for our design, sourcing and importing teams, our buyers and our distribution centers as these amounts are recorded in cost of sales. Additionally, selling, general and administrative expenses do not include rent and utilities, operating costs of our distribution centers, and shipping and handling costs related to our e-commerce operations, all of which are included in cost of sales.
Advertising Costs

Advertising Costs

Certain advertising costs, including direct mail, in-store photographs, and other promotional costs are expensed when the marketing campaign commences. As of February 1, 2025, the Company had prepaid advertising costs of $12.1 million. As of February 3, 2024, the Company had prepaid advertising expense of $7.6 million. All other advertising costs are expensed as incurred. The Company recognized $206.3 million, $186.9 million, and $175.2 million in advertising expense during Fiscal 2024, Fiscal 2023, and Fiscal 2022, respectively.
Store Pre-Opening Costs

Store Pre-Opening Costs

Store pre-opening costs consist primarily of rent, advertising, supplies, and payroll expenses. These costs are expensed as incurred.
Debt Related Charges

Debt-Related Charges

There were no debt related charges in Fiscal 2024 or Fiscal 2023. Refer to Note 8, Long-Term Debt, Net, to the Consolidated Financial Statements for additional information regarding the 2025 Notes.
Interest (Income) Expense, Net

Interest (Income) Expense, Net

Interest (income) expense, net primarily consists of interest income from cash and cash equivalents and short-term investments.
Other Income, Net

Other Income, Net

Other income, net consists primarily of foreign currency fluctuations and changes in other non-operating items. Non-controlling interest was not material for any period presented and is included within other income, net.
Legal Proceedings and Claims

Legal Proceedings and Claims

The Company is subject to certain legal proceedings and claims arising out of the conduct of its business. In accordance with ASC 450, Contingencies (“ASC 450”), the Company records a reserve for estimated losses when the loss is probable and the amount can be reasonably estimated. If a range of possible loss exists and no anticipated loss within the range is more likely than any other anticipated loss, the Company records the accrual at the low end of the range, in accordance with ASC 450. As the Company believes that it has provided adequate reserves, it anticipates that the ultimate outcome of any matter currently pending against the Company will not materially affect the consolidated financial position, results of operations or cash flows of the Company. However, our assessment of any litigation or other legal claims could potentially change in light of the discovery of facts not presently known or determinations by judges, juries, or other finders of fact that are not in accord with management’s evaluation of the possible liability or outcome of such litigation or claims.
Supplemental Disclosures of Cash Flow Information

Supplemental Disclosures of Cash Flow Information

The table below shows supplemental cash flow information for cash amounts paid (received) during the respective periods:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Cash paid (received) during the periods for:

 

 

 

 

 

 

 

 

 

Income taxes

 

$

139,777

 

 

$

31,440

 

 

$

(22,109

)

Interest

 

$

1,592

 

 

$

2,494

 

 

$

15,435

 
Segment Information

Segment Information

The Company has identified two operating segments (American Eagle and Aerie brand) that also represent our reportable segments and reflect our CODM's (defined as our CEO) internal view of analyzing results and allocating resources. Additionally, our Todd Snyder and Unsubscribed brands and Quiet Platforms have been identified as separate operating segments; however, as they do not meet the quantitative thresholds for separate disclosures they have been included in the Corporate and Other category. For additional information regarding the Company’s segment and geographic information, refer to Note 14, Segment Reporting, to the Consolidated Financial Statements.
v3.25.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Feb. 01, 2025
Accounting Policies [Abstract]  
Useful Lives of Major Classes of Assets The useful lives of our major classes of assets are as follows:

 

Buildings

25 years

Leasehold improvements

Lesser of 10 years or the term of the lease

Fixtures and equipment

Five years

Information technology

Three to five years
Sales Return Reserve The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined using historical average return percentages.

 

 

 

Fiscal Years Ending

 

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

 

Beginning balance

 

$

10,766

 

 

$

10,369

 

 

$

9,168

 

 

Returns

 

 

(161,891

)

 

 

(161,833

)

 

 

(150,987

)

 

Provisions

 

 

160,801

 

 

 

162,230

 

 

 

152,188

 

 

Ending balance

 

$

9,676

 

 

$

10,766

 

 

$

10,369

 

 

 
Supplemental Cash Flow Information for Cash Amounts (Received) Paid

The table below shows supplemental cash flow information for cash amounts paid (received) during the respective periods:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Cash paid (received) during the periods for:

 

 

 

 

 

 

 

 

 

Income taxes

 

$

139,777

 

 

$

31,440

 

 

$

(22,109

)

Interest

 

$

1,592

 

 

$

2,494

 

 

$

15,435

 
v3.25.1
Cash and Cash Equivalents and Short-term Investments (Tables)
 12 Months Ended
Feb. 01, 2025
Cash and Cash Equivalents [Abstract]  
Fair Market Value of Cash, Cash Equivalents, and Short-term Investments

The following table summarizes the fair market value of our cash, cash equivalents, and short-term investments, which are recorded on the Consolidated Balance Sheets:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

(In thousands)

 

2025

 

 

2024

 

Cash and cash equivalents:

 

 

 

 

 

 

Cash

 

$

150,053

 

 

$

162,279

 

Interest-bearing deposits

 

$

158,909

 

 

$

191,815

 

Total cash and cash equivalents

 

$

308,962

 

 

$

354,094

 

Short-term investments:

 

 

 

 

 

 

Certificates of deposits

 

$

50,000

 

 

$

100,000

 

Total short-term investments

 

$

50,000

 

 

$

100,000

 

Total cash and short-term investments

 

$

358,962

 

 

$

454,094

 
v3.25.1
Fair Value Measurements (Tables)
 12 Months Ended
Feb. 01, 2025
Fair Value Disclosures [Abstract]  
Summary of Financial Assets Measured at Fair Value on a Recurring Basis

 

 

Fair Value Measurements at February 1, 2025

 

(In thousands)

Carrying Amount

 

 

Quoted Market
Prices in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Cash

$

150,053

 

 

$

150,053

 

 

 

—

 

 

 

—

 

Interest-bearing deposits

 

158,909

 

 

 

158,909

 

 

 

—

 

 

 

—

 

Total cash and cash equivalents

$

308,962

 

 

$

308,962

 

 

 

—

 

 

 

—

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposits

$

50,000

 

 

$

50,000

 

 

 

—

 

 

 

—

 

Total short-term investments

$

50,000

 

 

$

50,000

 

 

 

—

 

 

 

—

 

Total cash and short-term investments

$

358,962

 

 

$

358,962

 

 

 

—

 

 

 

—

 

 
v3.25.1
Earnings per Share (Tables)
 12 Months Ended
Feb. 01, 2025
Earnings Per Share [Abstract]  
Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding

The following is a reconciliation between basic and diluted weighted average shares outstanding:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income and numerator for basic EPS

 

$

329,380

 

 

$

170,038

 

 

$

125,136

 

Add: Interest expense, net of tax, related to the 2025 Notes (1)

 

 

—

 

 

 

58

 

 

 

5,474

 

Numerator for diluted EPS

 

$

329,380

 

 

$

170,096

 

 

$

130,610

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Denominator for basic EPS - weighted average shares

 

 

193,056

 

 

 

195,646

 

 

 

181,778

 

Add: Dilutive effect of the 2025 Notes (1)

 

 

—

 

 

 

205

 

 

 

21,507

 

Add: Dilutive effect of stock options and non-vested restricted stock

 

 

3,356

 

 

 

1,012

 

 

 

1,941

 

Denominator for diluted EPS - adjusted weighted average shares

 

 

196,412

 

 

 

196,863

 

 

 

205,226

 

Anti-dilutive shares (2)

 

 

500

 

 

 

1,289

 

 

 

2,182

 

 

(1)
In Fiscal 2022, the Company adopted ASU 2020-06. The Company utilizes the "if-converted" method of calculating diluted EPS. Refer to Note 2, Summary of Significant Accounting Policies, to the Consolidated Financial Statements for additional information regarding the impact of the adoption of ASU 2020-06.
(2)
For all periods presented, anti-dilutive shares relate to stock options and unvested restricted stock.
v3.25.1
Property and Equipment, net (Tables)
 12 Months Ended
Feb. 01, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net

Property and equipment, net consists of the following:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

(In thousands)

 

2025

 

 

2024

 

Land

 

$

17,910

 

 

$

17,910

 

Buildings

 

 

228,390

 

 

 

222,660

 

Leasehold improvements

 

 

890,155

 

 

 

850,519

 

Fixtures and equipment

 

 

1,432,344

 

 

 

1,335,173

 

Construction in progress

 

 

2,486

 

 

 

852

 

Property and equipment, at cost

 

$

2,571,285

 

 

$

2,427,114

 

Less: Accumulated depreciation

 

 

(1,820,021

)

 

 

(1,713,778

)

Property and equipment, net

 

$

751,264

 

 

$

713,336

 

 
Depreciation Expense

Depreciation expense is as follows:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Depreciation expense

 

$

216,093

 

 

$

230,833

 

 

$

208,014

 
v3.25.1
Goodwill and Intangible Assets, net (Tables)
 12 Months Ended
Feb. 01, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Definite-lived intangible assets, net

Goodwill and definite-lived intangible assets, net consist of the following:

 

 

 

Fiscal Years Ending

 

 

 

February 1, 2025

 

 

February 3, 2024

 

(In thousands)

 

American Eagle

 

 

Aerie

 

 

Corporate and Other (3)

 

 

Total

 

 

American Eagle

 

 

Aerie

 

 

Corporate and Other (3)

 

 

Total

 

Goodwill, beginning balance(1)

 

$

114,703

 

 

$

110,600

 

 

$

-

 

 

$

225,303

 

 

$

114,747

 

 

$

110,600

 

 

$

39,598

 

 

$

264,945

 

Impairment(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(39,598

)

 

 

(39,598

)

Foreign currency fluctuation

 

 

(224

)

 

 

 

 

 

 

 

 

(224

)

 

 

(44

)

 

 

—

 

 

 

—

 

 

 

(44

)

Goodwill, ending balance

 

$

114,479

 

 

$

110,600

 

 

$

-

 

 

$

225,079

 

 

$

114,703

 

 

$

110,600

 

 

$

-

 

 

$

225,303

 

 

(1)
Beginning balances include accumulated impairment of $43.8 million and $4.2 million as of February 1, 2025 and February 3, 2024, respectively.
(2)
Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.
(3)
Corporate and Other includes goodwill allocated to the Quiet Platforms reporting unit, which has been identified as a separate operating segment, but is not material to disclose as a separate reportable segment.

 

 

 

Fiscal Years Ending

 

(In thousands)

 

February 1, 2025

 

 

February 3, 2024

 

Intangible assets, net, beginning balance

 

$

46,109

 

 

$

94,536

 

Additions

 

 

772

 

 

 

826

 

Impairment(1)

 

 

—

 

 

 

(40,533

)

Amortization

 

 

(4,432

)

 

 

(8,720

)

Intangible assets, net (2)

 

$

42,449

 

 

$

46,109

 

 

 

(1)
Impairment included $31.2 million of customer relationships and $9.3 million of trade names related to Quiet Platforms recorded in Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information
(2)
The ending balance includes accumulated amortization of $104.9 million and $100.9 million as of February 1, 2025 and February 3, 2024, respectively.
Amortization Expense

Amortization expense is as follows:

 

 

 

Fiscal Years Ending

 

(In thousands)

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

Amortization expense

 

$

4,432

 

 

$

8,748

 

 

$

9,162

 
Estimated Future Amortization Expense

The table below summarizes the estimated future amortization expense for intangible assets existing as of February 1, 2025 for the next five fiscal years:

 

 

 

Future

 

 

(In thousands)

 

Amortization

 

 

2025

 

$

4,142

 

 

2026

 

$

4,056

 

 

2027

 

$

3,958

 

 

2028

 

$

3,876

 

 

2029

 

$

3,702

 

 
v3.25.1
Leases (Tables)
 12 Months Ended
Feb. 01, 2025
Leases [Abstract]  
Summary of Expense Categories and Cash Payments for Operating Leases, Average Remaining Lease Term and Discount Rate

The following table summarizes expense categories and cash payments for operating leases during the period. It also includes the total non-cash transaction activity for new operating lease ROU assets and related operating lease liabilities entered into during the period.

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

February 3,

 

(In thousands)

 

2025

 

2024

 

Lease costs

 

 

 

 

 

Operating lease costs

 

$

387,560

 

$

335,420

 

Variable lease costs

 

 

115,010

 

 

121,061

 

Short-term leases and other lease costs

 

 

2,281

 

 

45,411

 

Total lease costs

 

$

504,851

 

$

501,892

 

 

 

 

 

 

 

Other information

 

 

 

 

 

Cash paid for operating lease liability

 

$

(387,560

)

$

(403,355

)

New operating lease ROU assets entered into during the period

 

$

559,750

 

$

153,236

 

 

The following table contains the average remaining lease term and discount rate, weighted by outstanding operating lease liability as of the end of the period:

 

Lease term and discount rate

 

February 1, 2025

Weighted-average remaining lease term - operating leases

 

7 years

Weighted-average discount rate - operating leases

 

5.2%

 
Summary of Maturity Analysis of Operating Leases

The table below is a maturity analysis of the operating leases in effect as of the end of the period. Undiscounted cash flows for finance leases and short-term leases are not material for the periods reported and are excluded from the table below:

 

 

 

Undiscounted
cash flows

 

(In thousands)

 

February 1, 2025

 

Fiscal years:

 

 

 

2025

 

 

367,689

 

2026

 

 

338,191

 

2027

 

 

286,428

 

2028

 

 

244,557

 

2029

 

 

184,835

 

Thereafter

 

 

573,868

 

Total undiscounted cash flows

 

$

1,995,568

 

Less: discount on lease liability

 

 

(549,238

)

Total lease liability

 

$

1,446,330

 
v3.25.1
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Feb. 01, 2025
Equity [Abstract]  
Accumulated Balances of Other Comprehensive Loss

The accumulated balances of other comprehensive loss included as part of the Consolidated Statements of Stockholders’ Equity follow:

 

Accumulated

 

 

Other

 

 

Comprehensive

 

(In thousands)

Loss

 

Balance at January 29, 2022

$

(40,845

)

Foreign currency translation gain (1)

 

9,749

 

Loss on long-term intra-entity foreign currency transactions

 

(1,534

)

Balance at January 28, 2023

$

(32,630

)

Foreign currency translation gain (1)

$

17,911

 

Loss on long-term intra-entity foreign currency transactions

$

(1,691

)

Balance at February 3, 2024

$

(16,410

)

Foreign currency translation (loss) (1)

$

(41,493

)

Gain on long-term intra-entity foreign currency transactions

$

1,513

 

Balance at February 1, 2025

$

(56,390

)

 

(1)
Foreign currency translation adjustments are not adjusted for income taxes as they relate to a permanent investment in a subsidiary.
v3.25.1
Share-Based Payments (Tables)
 12 Months Ended
Feb. 01, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Activity

A summary of the Company’s stock option activity for Fiscal 2024 follows:

 

 

 

Fiscal Year Ending February 1, 2025

 

 

 

 

 

 

Weighted-
Average

 

 

Weighted-
Average
Remaining
Contractual

 

 

Aggregate
Intrinsic

 

 

 

Options

 

 

Exercise Price

 

 

Term

 

 

Value

 

 

 

(In thousands)

 

 

 

 

 

(In years)

 

 

(In thousands)

 

Outstanding - February 3, 2024

 

 

4,213

 

 

$

16.83

 

 

 

 

 

 

 

Granted

 

 

525

 

 

$

24.37

 

 

 

 

 

 

 

Exercised (1)

 

 

(414

)

 

$

14.35

 

 

 

 

 

 

 

Cancelled

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Outstanding - February 1, 2025

 

 

4,324

 

 

$

17.98

 

 

 

3.3

 

 

$

7,777

 

Vested and expected to vest - February 1, 2025

 

 

4,202

 

 

$

17.86

 

 

 

3.2

 

 

$

7,603

 

Exercisable - February 1, 2025 (2)

 

 

1,135

 

 

$

11.12

 

 

 

3.0

 

 

$

5,696

 

 

 

(1)
Options exercised during Fiscal 2024 ranged in price from $8.62 to $17.24.
(2)
Options exercisable represent “in-the-money” vested options based upon the weighted average exercise price of vested options compared to the Company’s stock price on February 1, 2025.
Black-Scholes Option Valuation Assumptions

The fair value of stock options was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions:

 

 

 

Fiscal Years Ending

 

 

February 1,

 

February 3,

Black-Scholes Option Valuation Assumptions

 

2025

 

2024

Risk-free interest rate (1)

 

4.4%

 

3.4%

Dividend yield

 

1.9%

 

2.8%

Volatility factor (2)

 

55.4%

 

55.7%

Weighted-average expected term (3)

 

4.5 years

 

4.5 years

 

(1)
Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options.
(2)
Based on the historical volatility of the Company’s common stock.
(3)
Represents the period that options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience.
Summary of Restricted Stock Activity

A summary of the activity of the Company’s restricted stock is presented in the following tables:

 

 

 

Time-Based Restricted Stock Units

 

 

Performance-
Based Restricted Stock Units

 

 

 

Fiscal Year Ending

 

 

Fiscal Year Ending

 

 

 

February 1, 2025

 

 

February 1, 2025

 

(Shares in thousands)

 

Shares

 

 

Weighted-Average
Grant Date
Fair Value

 

 

Shares

 

 

Weighted-Average
Grant Date
Fair Value

 

Non-vested - February 3, 2024

 

 

2,830

 

 

$

15.83

 

 

 

2,023

 

 

$

18.45

 

Granted

 

 

1,101

 

 

 

24.03

 

 

 

500

 

 

 

26.95

 

Vested

 

 

(1,214

)

 

 

17.53

 

 

 

(257

)

 

 

38.38

 

Cancelled

 

 

(357

)

 

 

17.32

 

 

 

(48

)

 

 

18.55

 

Non-vested - February 1, 2025

 

 

2,360

 

 

$

18.56

 

 

 

2,218

 

 

$

18.05

 

 
v3.25.1
Income Taxes (Tables)
 12 Months Ended
Feb. 01, 2025
Income Tax Disclosure [Abstract]  
Components of Income (Loss) Before Income Taxes

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

U.S.

 

$

453,098

 

 

$

208,283

 

 

$

138,023

 

Foreign

 

 

(10,864

)

 

 

31,575

 

 

 

40,471

 

Total

 

$

442,234

 

 

$

239,858

 

 

$

178,494

 
Components of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

(In thousands)

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Operating lease ROU assets

 

$

361,549

 

 

$

305,043

 

Capitalized research and development expenses

 

 

28,121

 

 

 

22,014

 

Employee compensation and benefits

 

 

19,820

 

 

 

25,576

 

Net Operating Loss

 

 

12,470

 

 

 

25,071

 

Accruals not currently deductible

 

 

10,508

 

 

 

10,041

 

Deferred compensation

 

 

10,261

 

 

 

9,737

 

Other long-term assets

 

 

8,145

 

 

 

8,169

 

State tax credits

 

 

6,839

 

 

 

7,741

 

Gift card liability

 

 

6,239

 

 

 

5,723

 

Inventories

 

 

6,231

 

 

 

8,828

 

Impairment of investments

 

 

4,659

 

 

 

4,673

 

Allowance for Doubtful Accounts

 

 

2,180

 

 

 

3,114

 

Other

 

 

1,020

 

 

 

690

 

Foreign tax credits

 

 

955

 

 

 

955

 

General Business Credits

 

 

116

 

 

 

116

 

Gross deferred tax assets

 

$

479,113

 

 

$

437,491

 

Valuation allowance

 

 

(18,998

)

 

 

(27,466

)

Total deferred tax assets

 

$

460,115

 

 

$

410,025

 

Deferred tax liabilities:

 

 

 

 

 

 

Operating lease liabilities

 

$

(319,488

)

 

$

(253,229

)

Property and equipment

 

 

(64,429

)

 

 

(69,030

)

Prepaid expenses

 

 

(5,561

)

 

 

(3,572

)

Goodwill

 

 

(1,937

)

 

 

(1,981

)

Other

 

 

(542

)

 

 

(149

)

Total deferred tax liabilities

 

$

(391,957

)

 

$

(327,961

)

Total deferred tax assets, net

 

$

68,158

 

 

$

82,064

 
Components of Provision (Benefit) for Income Taxes

Significant components of the provision (benefit) for income taxes are as follows:

 

 

 

Fiscal Years Ending

 


 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

32,249

 

 

$

66,112

 

 

$

(986

)

Foreign taxes

 

 

52,224

 

 

 

27,958

 

 

 

19,701

 

State

 

 

18,633

 

 

 

19,206

 

 

 

3,594

 

Total current

 

 

103,106

 

 

 

113,276

 

 

 

22,309

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

$

9,940

 

 

$

(31,602

)

 

$

26,758

 

Foreign taxes

 

 

(3,766

)

 

 

(6,317

)

 

 

(1,374

)

State

 

 

3,574

 

 

 

(5,537

)

 

 

5,665

 

Total deferred

 

 

9,748

 

 

 

(43,456

)

 

 

31,049

 

Provision for income taxes

 

$

112,854

 

 

$

69,820

 

 

$

53,358

 
Activity Related to Unrecognized Tax Benefits

The following table summarizes the activity related to our unrecognized tax benefits:

 

 

 

Fiscal Years Ending

 


 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Unrecognized tax benefits, beginning of the year
   balance

 

$

3,974

 

 

$

2,478

 

 

$

3,259

 

Increases in current period tax positions

 

 

157

 

 

 

2,371

 

 

 

681

 

Increases in tax positions of prior periods

 

 

16,428

 

 

 

10

 

 

 

—

 

Settlements

 

 

(10,620

)

 

 

(275

)

 

 

(454

)

Lapse of statute of limitations

 

 

(73

)

 

 

(75

)

 

 

(277

)

Decreases in tax positions of prior periods

 

 

(32

)

 

 

(535

)

 

 

(731

)

Unrecognized tax benefits, end of the year balance

 

$

9,834

 

 

$

3,974

 

 

$

2,478

 
Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate

A reconciliation between the statutory federal income tax rate and the effective income tax rate follows:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

 

 

2025

 

 

2024

 

 

2023

 

Federal income tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes, net of federal income tax effect

 

 

3.7

 

 

 

4.4

 

 

 

3.6

 

Foreign rate differential

 

 

0.6

 

 

 

0.2

 

 

 

0.9

 

International provisions of Tax Act

 

 

(1.3

)

 

 

(2.2

)

 

 

0.1

 

Valuation allowance changes, net

 

 

0.7

 

 

 

0.5

 

 

 

0.5

 

Non-deductible executive compensation

 

 

1.3

 

 

 

3.8

 

 

 

2.0

 

Change in unrecognized tax benefits

 

 

0.7

 

 

 

0.8

 

 

 

(0.1

)

Share Based Payments

 

 

(0.5

)

 

 

0.2

 

 

 

(0.2

)

Note Exchanges

 

 

0.0

 

 

 

0.0

 

 

 

1.4

 

Non-deductible goodwill

 

 

0.0

 

 

 

3.5

 

 

 

0.0

 

Federal Credits

 

 

(0.8

)

 

 

(2.1

)

 

 

(0.4

)

Other

 

 

0.1

 

 

 

(1.0

)

 

 

1.1

 

 

 

 

25.5

%

 

 

29.1

%

 

 

29.9

%
v3.25.1
Segment Reporting (Tables)
 12 Months Ended
Feb. 01, 2025
Segment Reporting [Abstract]  
Summary of Reportable Segment Information

Reportable segment information is presented in the following table:

For the year ended February 1, 2025 (In thousands)

 

American Eagle

 

 

Aerie

 

 

Other

 

 

Intersegment Elimination

 

 

Total

 

Net Revenue

 

$

3,385,231

 

 

$

1,738,414

 

 

$

243,907

 

 

$

(38,900

)

 

$

5,328,652

 

Cost of sales, including certain buying, occupancy and warehousing costs

 

 

1,976,914

 

 

 

1,018,418

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

727,590

 

 

 

345,054

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

74,220

 

 

 

59,097

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

606,507

 

 

$

315,845

 

 

$

(53,722

)

 

$

-

 

 

$

868,630

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(423,766

)

Impairment, restructuring and other charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(17,561

)

Total operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

427,303

 

Interest (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,769

)

Other (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,162

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

442,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended February 3, 2024 (In thousands)

 

American Eagle

 

 

Aerie

 

 

Other

 

 

Intersegment Elimination

 

 

Total

 

Net Revenue

 

$

3,361,579

 

 

$

1,670,000

 

 

$

489,056

 

 

$

(258,865

)

 

$

5,261,770

 

Cost of sales, including certain buying, occupancy and warehousing costs

 

 

1,955,069

 

 

 

1,009,650

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

729,519

 

 

 

323,239

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

77,195

 

 

 

61,249

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

599,796

 

 

$

275,862

 

 

$

(36,124

)

 

$

-

 

 

$

839,534

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(464,172

)

Impairment, restructuring and other charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(152,645

)

Total operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

222,717

 

Interest (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,190

)

Other (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,951

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

239,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended January 28, 2023 (In thousands)

 

American Eagle

 

 

Aerie

 

 

Other

 

 

Intersegment Elimination

 

 

Total

 

Net Revenue

 

$

3,262,893

 

 

$

1,506,798

 

 

$

469,371

 

 

$

(249,229

)

 

$

4,989,833

 

Cost of sales, including certain buying, occupancy and warehousing costs

 

 

1,977,216

 

 

 

999,654

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

677,451

 

 

 

285,756

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

66,820

 

 

 

53,921

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

541,406

 

 

$

167,467

 

 

$

(56,793

)

 

$

-

 

 

$

652,080

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(382,824

)

Impairment, restructuring and other charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(22,209

)

Total operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

247,047

 

Debt related charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64,721

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,297

 

Other (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,465

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

178,494

 

 

(1) Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.

 

 

Fiscal Years Ending

 

 

February 1, 2025

 

 

February 3, 2024

 

 

January 28, 2023

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

 

 

 

    American Eagle

$

86,953

 

 

$

61,139

 

 

$

85,033

 

    Aerie

$

68,541

 

 

$

40,746

 

 

$

107,084

 

    Other

$

11,965

 

 

$

32,235

 

 

$

32,717

 

   General corporate expenditures

$

55,114

 

 

$

40,317

 

 

$

35,544

 

Total Capital Expenditures

$

222,573

 

 

$

174,437

 

 

$

260,378

 

 
Summary of Geographical Information

The following tables present summarized geographical information:

 

 

 

Fiscal Years Ending

 

 

 

February 1,

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Total net revenue:

 

 

 

 

 

 

 

 

 

United States

 

$

4,492,630

 

 

$

4,424,345

 

 

$

4,268,114

 

Foreign (1)

 

 

836,022

 

 

 

837,425

 

 

 

721,719

 

Total net revenue

 

$

5,328,652

 

 

$

5,261,770

 

 

$

4,989,833

 

 

(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 1,

 

 

February 3,

 

(In thousands)

 

2025

 

 

2024

 

Long-lived assets, net:

 

 

 

 

 

 

United States

 

$

1,887,502

 

 

$

1,521,392

 

Foreign

 

 

159,162

 

 

 

468,649

 

Total long-lived assets, net

 

$

2,046,664

 

 

$

1,990,041

 

v3.25.1
Impairment, Restructuring and Other Charges (Tables)
 12 Months Ended
Feb. 01, 2025
Restructuring and Related Activities [Abstract]  
Summary of Impairment and Restructuring Charges

The following table represents impairment, restructuring and other charges. All amounts were recorded within impairment, restructuring and other charges on the Consolidated Statements of Operations, unless otherwise noted.

 

 

 

For the year ended

 

 

 

February 1,

 

(In thousands)

 

2025

 

Corporate restructuring costs (1)

 

 

10,729

 

Hong Kong retail operations impairment and restructuring costs (2)

 

 

6,832

 

Total impairment, restructuring and other charges

 

$

17,561

 

The following footnotes relate to the impairment and restructuring charges in the third quarter of Fiscal 2024:

(1)
The Company recorded restructuring costs of $10.7 million related to employee severance.
(2)
The Company recorded impairment and restructuring costs of $6.8 million related to the sale of the Company's Hong Kong retail operations to a third-party buyer. These costs primarily consist of impairment of $6.4 million and employee severance.

 

 

 

Fiscal Years Ending

 

 

 

February 3,

 

 

January 28,

 

(In thousands)

 

2024

 

 

2023

 

Charges recorded in cost of sales:

 

 

 

 

 

 

       Inventory charges (1)

 

$

10,950

 

 

 

—

 

 

 

 

 

 

 

 

Charges recorded in operating expenses:

 

 

 

 

 

 

    Quiet Platforms impairment, restructuring and other charges (2)

 

 

119,572

 

 

$

3,844

 

International impairment and restructuring costs (3)

 

 

10,882

 

 

 

7,997

 

    Corporate impairment and restructuring charges (4)

 

 

11,241

 

 

 

-

 

U.S. and Canada store impairment charges(5)

 

 

-

 

 

 

10,368

 

Total impairment, restructuring and other charges

 

$

141,695

 

 

$

22,209

 

 

 

 

 

 

 

 

Total Company impairment, restructuring and other charges

 

$

152,645

 

 

$

22,209

 

 

The following footnotes relate to the impairment, restructuring and other charges in Fiscal 2023 and Fiscal 2022:

 

(1)
$11.0 million of inventory write-down charges related to our international businesses as further described in paragraph 1 of note (3) below.

 

(2)
$119.6 million of charges related to the Quiet Platforms restructuring. Of this amount, we impaired definite lived intangible assets of $40.5 million consisting of $31.2 million of customer relationships and $9.3 million of trade names. We also impaired $39.6 million of goodwill. We recorded $24.7 million of long-term asset impairment primarily related to technology which is no longer a part of the long-term strategy. All impairments were recorded due to insufficient prospective cash flows to support the asset value, resulting from the restructuring of Quiet Platforms. We recorded $9.9 million of severance based on this revised strategy. We also recorded $4.9 million of contract related charges.

 

For Fiscal 2022, impairment of $2.8 million consisting of $2.3 million of ROU asset and $0.5 million of property and equipment related to the closure of the Jacksonville, FL distribution center and severance of $1.0 million related to employees of that distribution center. The Jacksonville distribution center was replaced with a higher productivity location in Atlanta, GA.

 

(3)
$10.9 million of charges related to exiting the Japan market, including the closure of all 4 stores in January 2024, as well as impairment related to our Hong Kong retail operations. Of this amount, $4.7 million related to Japan ROU assets, $3.6 million of Japan store property and equipment, $1.3 million of Hong Kong store ROU assets, and $1.3 million of employee severance. All impairments were recorded due to insufficient prospective cash flows to support the asset values. Additionally, we recorded $11.0 million of inventory write-down charges related to restructuring our international operations, which was recorded separately in Cost of Sales and discussed in note (1) above.

 

For Fiscal 2022, $7.5 million of store impairment due to insufficient prospective cash flows to support the asset values and $0.5 million of severance related to down-sizing Hong Kong retail operations.

 

 

(4)
$11.2 million, consisting of $6.0 million of employee severance related to corporate realignment and other asset impairment of $5.2 million of investments related to further strategic business changes.

 

 

(5)
For Fiscal 2022, $10.4 million of impairment charges, consisting of $9.2 million of ROU assets and $1.2 million of store property and equipment related to insufficient cash flows to support the asset value in the U.S. and Canada.
Rollforward of Restructuring Liabilities Recognized in Consolidated Balance Sheet

A rollforward of the restructuring liabilities recognized in the Consolidated Balance Sheet is as follows:

 

 

 

 

 

For the year ended

 

 

 

 

 

February 1,

 

(In thousands)

 

 

 

2025

 

Accrued liability as of February 3, 2024

 

 

 

$

11,414

 

Add: Costs incurred, excluding non-cash charges

 

 

 

 

10,728

 

Less: Cash payments and adjustments

 

 

 

 

(14,492

)

Accrued liability as of February 1, 2025

 

 

 

$

7,650

 
v3.25.1
Business Operations - Additional Information (Detail)
Feb. 01, 2025
Store
Country
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of retail stores 1,500
Number of international store locations 300
Number of countries company operates in | Country 90
v3.25.1
Summary of Significant Accounting Policies - Additional Information (Detail)
$ / shares in Units, shares in Thousands, $ in Thousands
 1 Months Ended 12 Months Ended
Jul. 28, 2022
$ / shares
shares
Jun. 03, 2022
USD ($)
shares
Jun. 30, 2022
USD ($)
Apr. 30, 2020
USD ($)
Feb. 01, 2025
USD ($)
Segment
shares
Feb. 03, 2024
USD ($)
shares
Jan. 28, 2023
USD ($)
shares
Significant Accounting Policies [Line Items]              
Maximum ownership percentage in consolidated entities and subsidiaries         100.00%    
Number of reportable segments | Segment         2    
Allowance for credit losses         $ 8,900 $ 12,700  
Weighted average remaining useful life, assets         6 years    
Goodwill impairment charge [1]           39,598  
Definite-lived impairment charges [2]           40,533  
Payments for accelerated share repurchase         $ 190,912 $ 10,666 $ 9,780
Cumulative treasury stock, shares | shares         60,948 52,630 54,502
Debt related charges             $ 64,721
Credit Card Reward Program Description         The Program features a variety of benefits for loyalty members and credit card members. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn dollar rewards in the form of discount savings certificates. Rewards earned are valid through the stated expiration date, which is 60 days from the issuance date of the reward. Rewards not redeemed during the 60-day redemption period are forfeited.    
Prepaid advertising expense         $ 12,100 $ 7,600  
Advertising expense         206,300 186,900 175,200
ASR Agreement | JPM              
Significant Accounting Policies [Line Items]              
Payments for accelerated share repurchase   $ 200,000          
Number of shares repurchased | shares 3,700 13,400          
Cumulative treasury stock, shares | shares 17,000            
Shares repurchased price per share | $ / shares $ 11.75            
Credit Agreement | Credit Facilities              
Significant Accounting Policies [Line Items]              
Loans and letters of credit maximum borrowing capacity     $ 700,000        
Line of credit facility, expiration date     Jun. 24, 2027        
Quiet Platforms              
Significant Accounting Policies [Line Items]              
Goodwill impairment charge           39,600  
Definite-lived impairment charges         0 40,500 $ 0
ACON Apparel Investors, L.P. | ACON Apparel GenPar, LLC.              
Significant Accounting Policies [Line Items]              
Payment paid         $ 35,000    
Percentage of interest         20.00%    
2025 Notes              
Significant Accounting Policies [Line Items]              
Aggregate principal amount of debt issued       $ 415,000      
Debt instrument, maturity year       2025      
Debt related charges         $ 0 $ 0  
Minimum              
Significant Accounting Policies [Line Items]              
Definite-lived intangibles, useful life         10 years    
Maximum              
Significant Accounting Policies [Line Items]              
Definite-lived intangibles, useful life         15 years    
ASU 2020-06              
Significant Accounting Policies [Line Items]              
Change in accounting principle, accounting standards update, adopted         true    
Change in accounting principle, accounting standards update, adoption date         Jan. 30, 2022    
ASU 2023-07              
Significant Accounting Policies [Line Items]              
Change in accounting principle, accounting standards update, adopted         true    
[1] Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.
[2] Impairment included $31.2 million of customer relationships and $9.3 million of trade names related to Quiet Platforms recorded in Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information
v3.25.1
Summary of Significant Accounting Policies - Useful Lives of Major Classes of Assets (Detail)
Feb. 01, 2025
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items]  
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] Leasehold Improvements
Buildings  
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items]  
Useful lives in asset class 25 years
Leasehold Improvements | Maximum  
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items]  
Useful lives in asset class 10 years
Fixtures and Equipment  
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items]  
Useful lives in asset class 5 years
Information Technology | Minimum  
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items]  
Useful lives in asset class 3 years
Information Technology | Maximum  
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items]  
Useful lives in asset class 5 years
v3.25.1
Summary of Significant Accounting Policies - Useful Lives of Major Classes of Assets (Parenthetical) (Detail)
Feb. 01, 2025
Maximum | Leasehold Improvements  
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items]  
Useful lives in asset class 10 years
v3.25.1
Summary of Significant Accounting Policies - Sales Return Reserve (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Accounting Policies [Abstract]      
Beginning balance $ 10,766 $ 10,369 $ 9,168
Returns (161,891) (161,833) (150,987)
Provisions 160,801 162,230 152,188
Ending balance $ 9,676 $ 10,766 $ 10,369
v3.25.1
Summary of Significant Accounting Policies - Supplemental Cash Flow Information for Cash Amounts (Received) Paid (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Cash paid (received) during the periods for:      
Income taxes $ 139,777 $ 31,440 $ (22,109)
Interest $ 1,592 $ 2,494 $ 15,435
v3.25.1
Cash and Cash Equivalents and Short-term Investments - Fair Market Value of Cash, Cash Equivalents, and Short-term Investments (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Cash and cash equivalents:    
Cash and cash equivalents $ 308,962 $ 354,094
Short-term investments:    
Short-term investments 50,000 100,000
Total cash and short-term investments 358,962 454,094
Cash    
Cash and cash equivalents:    
Cash and cash equivalents 150,053 162,279
Interest Bearing Deposits    
Cash and cash equivalents:    
Cash and cash equivalents 158,909 191,815
Certificates of Deposit    
Short-term investments:    
Short-term investments $ 50,000 $ 100,000
v3.25.1
Fair Value Measurements - Additional Information (Detail) - USD ($)
 1 Months Ended 12 Months Ended
Apr. 30, 2020
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Fair Value Measurements Disclosure [Line Items]        
Financial instruments required at fair value measurements   $ 0    
Asset impairment charges   $ 6,353,000 $ 116,365,000 $ 20,633,000
Definite-lived impairment charges [1]     $ 40,533,000  
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration]   Impairment Restructuring and Other Charges Impairment Restructuring and Other Charges Impairment Restructuring and Other Charges
2025 Notes        
Fair Value Measurements Disclosure [Line Items]        
Aggregate principal amount of debt issued $ 415,000,000      
Debt instrument, maturity year 2025      
Japan        
Fair Value Measurements Disclosure [Line Items]        
Impairment of operating lease ROU assets     $ 300,000  
Hong Kong        
Fair Value Measurements Disclosure [Line Items]        
Asset impairment charges   $ 6,400,000    
Impairment of property and equipment     1,300,000  
Quiet Platforms        
Fair Value Measurements Disclosure [Line Items]        
Asset impairment charges   6,400,000 74,800,000 $ 2,800,000
Definite-lived impairment charges   0 40,500,000 0
Impairment of property and equipment and ROU assets     24,700,000  
Impairment of property and equipment     $ 24,700,000  
Impairment of operating lease ROU assets       $ 2,300,000
Revolving Credit Facility        
Fair Value Measurements Disclosure [Line Items]        
Outstanding borrowings   $ 0    
[1] Impairment included $31.2 million of customer relationships and $9.3 million of trade names related to Quiet Platforms recorded in Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information
v3.25.1
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents $ 308,962 $ 354,094
Fair Value Measurements, Recurring | Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 308,962  
Short-term investments 50,000  
Total cash and short-term investments 358,962  
Fair Value Measurements, Recurring | Cash | Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 150,053  
Fair Value Measurements, Recurring | Interest Bearing Deposits | Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 158,909  
Fair Value Measurements, Recurring | Certificates of Deposit | Carrying Amount    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 50,000  
Fair Value Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 308,962  
Short-term investments 50,000  
Total cash and short-term investments 358,962  
Fair Value Measurements, Recurring | Level 1 | Cash    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 150,053  
Fair Value Measurements, Recurring | Level 1 | Interest Bearing Deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 158,909  
Fair Value Measurements, Recurring | Level 1 | Certificates of Deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments $ 50,000  
v3.25.1
Earnings per Share - Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding (Detail) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Numerator:      
Net Income (Loss) $ 329,380 $ 170,038 $ 125,136
Add: Interest expense, net of tax, related to the 2025 Notes [1]   58 5,474
Numerator for diluted EPS $ 329,380 $ 170,096 $ 130,610
Denominator:      
Denominator for basic EPS - weighted average shares 193,056 195,646 181,778
Add: Dilutive effect of the 2025 Notes [1]   205 21,507
Add: Dilutive effect of stock options and non-vested restricted stock 3,356 1,012 1,941
Denominator for diluted EPS - adjusted weighted average shares 196,412 196,863 205,226
Anti-dilutive shares [2] 500 1,289 2,182
[1] In Fiscal 2022, the Company adopted ASU 2020-06. The Company utilizes the "if-converted" method of calculating diluted EPS. Refer to Note 2, Summary of Significant Accounting Policies, to the Consolidated Financial Statements for additional information regarding the impact of the adoption of ASU 2020-06.
[2] For all periods presented, anti-dilutive shares relate to stock options and unvested restricted stock
v3.25.1
Property and Equipment, Net - Property and Equipment, net (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Property, Plant and Equipment [Abstract]    
Land $ 17,910 $ 17,910
Buildings 228,390 222,660
Leasehold improvements 890,155 850,519
Fixtures and equipment 1,432,344 1,335,173
Construction in progress 2,486 852
Property and equipment, at cost 2,571,285 2,427,114
Less: Accumulated depreciation (1,820,021) (1,713,778)
Property and equipment, net $ 751,264 $ 713,336
v3.25.1
Property and Equipment, Net - Depreciation Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 216,093 $ 230,833 $ 208,014
v3.25.1
Property and Equipment, Net - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Property, Plant and Equipment [Abstract]      
Asset write-offs $ 5.1 $ 3.6 $ 4.4
v3.25.1
Goodwill and Intangible Assets, net - Summary of Goodwill and Definite-lived Intangible Assets, Net (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Goodwill [Line Items]    
Goodwill, beginning balance [1] $ 225,303 $ 264,945
Impairment [2]   (39,598)
Foreign currency fluctuation (224) (44)
Goodwill, ending balance 225,079 225,303 [1]
Intangible assets, net, beginning balance 46,109 [3] 94,536
Additions 772 826
Impairment [4]   (40,533)
Amortization (4,432) (8,720)
Intangible assets, net [3] 42,449 46,109
Operating Segments | American Eagle    
Goodwill [Line Items]    
Goodwill, beginning balance [1] 114,703 114,747
Foreign currency fluctuation (224) (44)
Goodwill, ending balance 114,479 114,703 [1]
Operating Segments | Aerie    
Goodwill [Line Items]    
Goodwill, beginning balance [1] 110,600 110,600
Goodwill, ending balance $ 110,600 110,600 [1]
Corporate and Other, Non-Segment    
Goodwill [Line Items]    
Goodwill, beginning balance [1],[5]   39,598
Impairment [2],[5]   $ (39,598)
Goodwill, ending balance    
[1] Beginning balances include accumulated impairment of $43.8 million and $4.2 million as of February 1, 2025 and February 3, 2024, respectively.
[2] Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.
[3] The ending balance includes accumulated amortization of $104.9 million and $100.9 million as of February 1, 2025 and February 3, 2024, respectively.
[4] Impairment included $31.2 million of customer relationships and $9.3 million of trade names related to Quiet Platforms recorded in Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information
[5] Corporate and Other includes goodwill allocated to the Quiet Platforms reporting unit, which has been identified as a separate operating segment, but is not material to disclose as a separate reportable segment.
v3.25.1
Goodwill and Intangible Assets, net - Summary of Goodwill and Definite-lived Intangible Assets, Net, (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Finite-Lived Intangible Assets [Line Items]      
Accumulated impairment $ 43,800 $ 4,200  
Impairment [1]   40,533  
Accumulated amortization 104,900 100,900  
Quiet Platforms      
Finite-Lived Intangible Assets [Line Items]      
Impairment $ 0 40,500 $ 0
Customer Relationships | Quiet Platforms      
Finite-Lived Intangible Assets [Line Items]      
Impairment   31,200  
Trade Names | Quiet Platforms      
Finite-Lived Intangible Assets [Line Items]      
Impairment   $ 9,300  
[1] Impairment included $31.2 million of customer relationships and $9.3 million of trade names related to Quiet Platforms recorded in Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information
v3.25.1
Goodwill and Intangible Assets, net - Amortization Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 4,432 $ 8,748 $ 9,162
v3.25.1
Goodwill and Intangible Assets, net - Estimated Future Amortization Expense (Detail)
$ in Thousands
Feb. 01, 2025
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2025 $ 4,142
2026 4,056
2027 3,958
2028 3,876
2029 $ 3,702
v3.25.1
Long-Term Debt, Net - Additional Information (Detail)
shares in Thousands
 1 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
Apr. 30, 2020
USD ($)
TradingDay
Feb. 01, 2025
USD ($)
Feb. 03, 2024
USD ($)
shares
Feb. 01, 2024
USD ($)
Jan. 28, 2023
USD ($)
shares
Line Of Credit Facility [Line Items]            
Long-term debt outstanding     $ 0 $ 0   $ 0
Credit Facilities            
Line Of Credit Facility [Line Items]            
Credit facility interest rate     0.10      
Weighted average interest rate for borrowings       6.00%    
Interest expense         $ 1,100,000  
Credit Facilities | SOFR | Minimum            
Line Of Credit Facility [Line Items]            
Accrued interest margin rate     1.125%      
Credit Facilities | SOFR | Maximum            
Line Of Credit Facility [Line Items]            
Accrued interest margin rate     1.375%      
Credit Facilities | Alternate Base Rate | Minimum            
Line Of Credit Facility [Line Items]            
Accrued interest margin rate     0.125%      
Credit Facilities | Alternate Base Rate | Maximum            
Line Of Credit Facility [Line Items]            
Accrued interest margin rate     0.375%      
Credit Agreement | Credit Facilities            
Line Of Credit Facility [Line Items]            
Loans and letters of credit maximum borrowing capacity $ 700,000,000          
Line of credit facility, expiration date Jun. 24, 2027          
Credit Agreement | Stand-by Letters of Credit            
Line Of Credit Facility [Line Items]            
Letters of credit outstanding amount     $ 12,000,000 $ 7,700,000    
Credit Agreement | Credit Agreement Loans            
Line Of Credit Facility [Line Items]            
Outstanding borrowings     $ 0 $ 0    
Common Stock            
Line Of Credit Facility [Line Items]            
Exchange of Convertible Senior Notes (in shares) | shares       1,099   42,329
2025 Notes            
Line Of Credit Facility [Line Items]            
Aggregate principal amount of debt issued   $ 415,000,000        
Debt instrument, stated interest rate   3.75%        
Debt instrument, maturity year   2025        
Debt instrument, interest terms   The 2025 Notes had a stated interest rate of 3.75%, payable semi-annually.        
Debt instrument, redemption earliest date   Apr. 17, 2023        
Debt instrument, frequency of periodic payment of interest   payable semi-annually        
Notes exchange aggregate principal amount           $ 403,200,000
Interest expense for 2025 Notes       $ 100,000    
Debt instrument, redemption, scheduled trading day immediately preceding maturity date | TradingDay   40        
Debt instrument, redemption percentage of common stock price to conversion price   130.00%        
Debt instrument, redemption, effect for trading days | TradingDay   20        
Debt instrument, redemption, consecutive trading day period | TradingDay   30        
v3.25.1
Leases - Summary of Expense Categories and Cash Payments for Operating Leases (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Lease costs    
Operating lease costs $ 387,560 $ 335,420
Variable lease costs 115,010 121,061
Short-term leases and other lease costs 2,281 45,411
Total lease costs 504,851 501,892
Other information    
Cash paid for operating lease liability (387,560) (403,355)
New operating lease ROU assets entered into during the period $ 559,750 $ 153,236
v3.25.1
Leases - Summary of Average Remaining Lease Term and Discount Rate (Detail)
Feb. 01, 2025
Lease term and discount rate  
Weighted-average remaining lease term - operating leases 7 years
Weighted-average discount rate - operating leases 5.20%
v3.25.1
Leases - Summary of Maturity Analysis of Operating Leases (Detail)
$ in Thousands
Feb. 01, 2025
USD ($)
Leases [Abstract]  
2025 $ 367,689
2026 338,191
2027 286,428
2028 244,557
2029 184,835
Thereafter 573,868
Total undiscounted cash flows 1,995,568
Less: discount on lease liability (549,238)
Total lease liability $ 1,446,330
v3.25.1
Accumulated Other Comprehensive Loss - Accumulated Balances of Other Comprehensive Loss (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Accumulated Other Comprehensive Income (Loss)      
Beginning Balance $ (16,410) $ (32,630) $ (40,845)
Foreign currency translation gain (loss) [1] (41,493) 17,911 9,749
Gain (loss) on long-term intra-entity foreign currency transactions 1,513 (1,691) (1,534)
Ending Balance $ (56,390) $ (16,410) $ (32,630)
[1] Foreign currency translation adjustments are not adjusted for income taxes as they relate to a permanent investment in a subsidiary.
v3.25.1
Share-Based Payments - Additional Information (Detail)
 12 Months Ended
Jun. 07, 2023
USD ($)
shares
Apr. 13, 2020
USD ($)
shares
Feb. 01, 2025
USD ($)
CompensationPlan
$ / shares
shares
Feb. 03, 2024
USD ($)
$ / shares
shares
Jan. 28, 2023
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation     $ 39,606,000 $ 51,067,000 $ 38,986,000
Share-based compensation, net of tax     $ 29,500,000 36,200,000 27,300,000
Number of share-based compensation plans | CompensationPlan     2    
Stock awards     $ 39,006,000 $ 50,445,000 38,148,000
Weighted-average grant date fair value of stock options granted | $ / shares     $ 10.61 $ 5.31  
Aggregate intrinsic value of options exercised     $ 3,500,000 $ 3,600,000  
Net proceeds from stock options exercised     3,841,000 7,646,000 $ 2,089,000
Tax benefit (detriment) realized from stock option exercises     2,100,000 (500,000)  
Stock repurchased during period, value     $ 13,800,000 $ 10,700,000  
Stock repurchased during period, shares | shares     600,000 800,000  
Shares available for all equity grants | shares     11,000,000    
2023 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Authorized shares under the plan | shares 10,600,000        
Shares of common stock granted | shares     700,000    
2023 Stock Award and Incentive Plan | Director | In any single calendar year          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock awards $ 750,000        
2020 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Authorized shares under the plan | shares   10,200,000      
Shares of common stock granted | shares       3,400,000  
Terminated date   Jun. 07, 2023      
2020 Stock Award and Incentive Plan | Director | In any single calendar year          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock awards   $ 750,000      
Stock options, SAR, dividend equivalents, performance awards or other non-full value stock awards | 2020 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Maximum number of options that may be granted to any individual | shares   3,000,000      
Restricted stock awards, restricted stock units or other full value stock awards | 2020 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Maximum number of options that may be granted to any individual | shares   1,500,000      
Restricted Stock | 2023 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares granted | shares     1,600,000    
Restricted Stock | 2020 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares granted | shares       7,200,000  
Performance-Based Restricted Stock Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares granted | shares     500,000    
Vesting period     3 years    
Unrecognized compensation expense     $ 4,700,000    
Unrecognized compensation expense, weighted average period     1 year 8 months 12 days    
Performance-Based Restricted Stock Units | 2023 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Percentage of shares vested     30.00%    
Performance-Based Restricted Stock Units | 2020 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Percentage of shares vested       40.00%  
Time-based restricted stock awards | 2023 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Percentage of shares vested     70.00%    
Time-based restricted stock awards | 2020 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Percentage of shares vested       60.00%  
Employee Stock Option          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized compensation expense     $ 700,000    
Unrecognized compensation expense, weighted average period     1 year 10 months 24 days    
Time Based Restricted Stock Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares granted | shares     1,101,000    
Unrecognized compensation expense, weighted average period     1 year 10 months 24 days    
Unrecognized compensation expense, restricted stock grants     $ 25,100,000    
Time Based Restricted Stock Units | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period     1 year    
Time Based Restricted Stock Units | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period     3 years    
Time and performance-based awards          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation     $ 14,200,000 $ 20,100,000  
Time and performance-based awards | Selling general and administrative expenses          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation     $ 25,400,000 $ 31,000,000  
Vest Ratably | 2023 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Percentage of shares vested     95.00%    
Vesting period     3 years    
Vest Ratably | 2020 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Percentage of shares vested       97.00%  
Vesting period       3 years  
Vest Ratably 1 | 2023 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Percentage of shares vested     5.00%    
Vest Ratably 1 | 2023 Stock Award and Incentive Plan | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period     1 year    
Vest Ratably 1 | 2023 Stock Award and Incentive Plan | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period     2 years    
Vest Ratably 1 | 2020 Stock Award and Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Percentage of shares vested       3.00%  
Vest Ratably 1 | 2020 Stock Award and Incentive Plan | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period       1 year  
Vest Ratably 1 | 2020 Stock Award and Incentive Plan | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period       2 years  
v3.25.1
Share-Based Payments - Summary of Stock Option Activity (Detail)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Feb. 01, 2025
USD ($)
$ / shares
shares
Options  
Outstanding - beginning of period | shares 4,213
Granted | shares 525
Exercised | shares (414) [1]
Outstanding - end of period | shares 4,324
Vested and expected to vest - end of period | shares 4,202
Exercisable - end of period | shares 1,135 [2]
Weighted-Average Exercise Price  
Outstanding - beginning of period | $ / shares $ 16.83
Granted | $ / shares 24.37
Exercised | $ / shares 14.35 [1]
Outstanding - end of period | $ / shares 17.98
Vested and expected to vest - end of period | $ / shares 17.86
Exercisable - end of period | $ / shares $ 11.12 [2]
Weighted-Average Remaining Contractual Term (In years)  
Outstanding - end of period 3 years 3 months 18 days
Vested and expected to vest - end of period 3 years 2 months 12 days
Exercisable - end of period 3 years [2]
Aggregate Intrinsic Value  
Outstanding - end of period | $ $ 7,777
Vested and expected to vest - end of period | $ 7,603
Exercisable - end of period | $ $ 5,696 [2]
[1] Options exercised during Fiscal 2024 ranged in price from $8.62 to $17.24.
[2] Options exercisable represent “in-the-money” vested options based upon the weighted average exercise price of vested options compared to the Company’s stock price on February 1, 2025.
v3.25.1
Share-Based Payments - Summary of Stock Option Activity (Parenthetical) (Detail)
 12 Months Ended
Feb. 01, 2025
$ / shares
Share-Based Payment Arrangement [Abstract]  
Options exercised, exercise price range, lower limit $ 8.62
Options exercised, exercise price range, upper limit $ 17.24
v3.25.1
Share-Based Payments - Black-Scholes Option Valuation Assumptions (Detail)
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Risk-free interest rates [1] 4.40% 3.40%
Dividend yield 1.90% 2.80%
Volatility factor [2] 55.40% 55.70%
Weighted-average expected term [3] 4 years 6 months 4 years 6 months
[1] Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options.
[2] Based on the historical volatility of the Company’s common stock.
[3] Represents the period that options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience.
v3.25.1
Share-Based Payments - Summary of Restricted Stock Activity (Detail)
shares in Thousands
 12 Months Ended
Feb. 01, 2025
$ / shares
shares
Time Based Restricted Stock Units  
Shares  
Nonvested - beginning of period | shares 2,830
Granted | shares 1,101
Vested | shares (1,214)
Cancelled | shares (357)
Nonvested - end of period | shares 2,360
Weighted-Average Grant Date Fair Value  
Nonvested - beginning of period | $ / shares $ 15.83
Granted | $ / shares 24.03
Vested | $ / shares 17.53
Cancelled | $ / shares 17.32
Nonvested - end of period | $ / shares $ 18.56
Performance-Based Restricted Stock Units  
Shares  
Nonvested - beginning of period | shares 2,023
Granted | shares 500
Vested | shares (257)
Cancelled | shares (48)
Nonvested - end of period | shares 2,218
Weighted-Average Grant Date Fair Value  
Nonvested - beginning of period | $ / shares $ 18.45
Granted | $ / shares 26.95
Vested | $ / shares 38.38
Cancelled | $ / shares 18.55
Nonvested - end of period | $ / shares $ 18.05
v3.25.1
Retirement Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($)
 12 Months Ended
Jan. 01, 2023
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Defined Benefit Plan Disclosure [Line Items]        
Employee contribution percentage   3.00%    
Years of age attained   20 years    
Vesting percentage in matching contribution to defined contribution plan   100.00%    
Vesting period in matching contribution to defined contribution plan   2 years    
Compensation expense   $ 16,000,000 $ 21,000,000 $ 15,100,000
First 3 Percent of Each Participant's Contributions        
Defined Benefit Plan Disclosure [Line Items]        
Matching contribution to defined contribution plan   100.00%    
Next 3 Percent of Each Participant's Contributions        
Defined Benefit Plan Disclosure [Line Items]        
Matching contribution to defined contribution plan   25.00%    
Full-time employees        
Defined Benefit Plan Disclosure [Line Items]        
Periods of service to be eligible   30 days    
Part-time employees        
Defined Benefit Plan Disclosure [Line Items]        
Periods of service to be eligible 500 hours 1000 hours    
Defined Contribution Pension Plan 401k | Maximum        
Defined Benefit Plan Disclosure [Line Items]        
Employee contribution percentage   50.00%    
Employee Stock Purchase Plan        
Defined Benefit Plan Disclosure [Line Items]        
Periods of service to be eligible   60 days    
Employee Stock Purchase Plan | Maximum        
Defined Benefit Plan Disclosure [Line Items]        
Matching investment per pay period   $ 100    
Employee Stock Purchase Plan | Minimum        
Defined Benefit Plan Disclosure [Line Items]        
Qualifying age   18 years    
Matching percent of investment   15.00%    
Matching investment per pay period   $ 5    
v3.25.1
Income Taxes - Additional Information (Detail) - USD ($)
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Jan. 29, 2023
Jan. 29, 2022
Income Taxes [Line Items]          
U.S. federal corporate tax rate 21.00% 21.00% 21.00%    
Net operating loss $ 12,470,000 $ 25,071,000      
Valuation allowances 18,998,000 27,466,000      
Foreign tax credit carryovers $ 1,000,000 1,000,000      
Foreign tax credit carryovers expiration date 2028        
Deferred tax asset related to State income tax credit carryforwards, net of federal tax $ 6,800,000 8,000,000      
Deferred tax asset related to State income tax credit, net of federal tax, minimum carryforwards years 16 years        
Deferred tax asset related to State income tax credit carryforwards, net of federal tax, expiration period begins 2024        
Valuation allowances of state income tax credit carryovers $ 1,000,000 1,500,000      
Federal and state impairments of investments 4,700,000 4,600,000      
Valuation allowance on deferred tax asset to impairments of investments 4,700,000 4,600,000      
Deferred tax assets, Other long term assets 8,145,000 8,169,000      
Valuation allowances on deferred tax assets to other long term assets 8,100,000 8,200,000      
Undistributed foreign earnings 175,700,000        
Deferred income taxes $ 9,748,000 (43,456,000) $ 31,049,000    
Percent of dividends received as deduction for tax act 100.00%        
Unrecognized tax benefits $ 9,834,000 3,974,000 2,478,000 $ 2,478,000 $ 3,259,000
Unrecognized tax benefits that would affect effective income tax rate if recognized 9,000,000 3,600,000      
Increase (decrease) in unrecognized tax benefits 5,900,000 1,500,000      
Reasonably possible amount of reduction in unrecognized tax benefit over the next twelve months 5,000,000        
Accrued interest and penalties related to unrecognized tax benefits 1,400,000 800,000      
Interest and penalties related to unrecognized tax benefits 7,300,000        
Income tax expense (benefit) $ 112,854,000 $ 69,820,000 $ 53,358,000    
Effective income tax benefit rate 25.50% 29.10% 29.90%    
Retained Earnings          
Income Taxes [Line Items]          
Deferred income taxes $ 0        
Federal          
Income Taxes [Line Items]          
Net operating loss 5,500,000        
State          
Income Taxes [Line Items]          
Net operating loss 5,700,000        
Foreign          
Income Taxes [Line Items]          
Net operating loss 1,300,000        
Deferred Tax Asset Operating Loss Carryforwards State          
Income Taxes [Line Items]          
Valuation allowances 2,900,000 $ 2,800,000      
Deferred Tax Asset Operating Loss Carryforwards Foreign          
Income Taxes [Line Items]          
Valuation allowances 1,300,000 9,400,000      
Deferred Tax Asset Tax Credit Carryforwards Foreign          
Income Taxes [Line Items]          
Valuation allowances $ 1,000,000 $ 1,000,000      
v3.25.1
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Tax Disclosure [Abstract]      
U.S. $ 453,098 $ 208,283 $ 138,023
Foreign (10,864) 31,575 40,471
Income before income taxes $ 442,234 $ 239,858 $ 178,494
v3.25.1
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Feb. 01, 2025
Feb. 03, 2024
Deferred tax assets:    
Operating lease ROU assets $ 361,549 $ 305,043
Capitalized research and development expenses 28,121 22,014
Employee compensation and benefits 19,820 25,576
Net Operating Loss 12,470 25,071
Accruals not currently deductible 10,508 10,041
Deferred compensation 10,261 9,737
Other long-term assets 8,145 8,169
State tax credits 6,839 7,741
Gift card liability 6,239 5,723
Inventories 6,231 8,828
Impairment of investments 4,659 4,673
Allowance for Doubtful Accounts 2,180 3,114
Other 1,020 690
Foreign tax credits 955 955
General Business Credits 116 116
Gross deferred tax assets 479,113 437,491
Valuation allowance (18,998) (27,466)
Total deferred tax assets 460,115 410,025
Deferred tax liabilities:    
Operating lease liabilities (319,488) (253,229)
Property and equipment (64,429) (69,030)
Prepaid expenses (5,561) (3,572)
Goodwill (1,937) (1,981)
Other (542) (149)
Total deferred tax liabilities (391,957) (327,961)
Total deferred tax assets, net $ 68,158 $ 82,064
v3.25.1
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Current:      
Federal $ 32,249 $ 66,112 $ (986)
Foreign taxes 52,224 27,958 19,701
State 18,633 19,206 3,594
Total current 103,106 113,276 22,309
Deferred:      
Federal 9,940 (31,602) 26,758
Foreign taxes (3,766) (6,317) (1,374)
State 3,574 (5,537) 5,665
Total deferred 9,748 (43,456) 31,049
Provision for income taxes $ 112,854 $ 69,820 $ 53,358
v3.25.1
Income Taxes - Activity Related to Unrecognized Tax Benefits (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Tax Disclosure [Abstract]      
Unrecognized tax benefits, beginning of the year balance $ 3,974 $ 2,478 $ 3,259
Increases in current period tax positions 157 2,371 681
Increases in tax positions of prior periods 16,428 10  
Settlements (10,620) (275) (454)
Lapse of statute of limitations (73) (75) (277)
Decreases in tax positions of prior periods (32) (535) (731)
Unrecognized tax benefits, end of the year balance $ 9,834 $ 3,974 $ 2,478
v3.25.1
Income Taxes - Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate (Detail)
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Income Tax Disclosure [Abstract]      
Federal income tax rate 21.00% 21.00% 21.00%
State income taxes, net of federal income tax effect 3.70% 4.40% 3.60%
Foreign rate differential 0.60% 0.20% 0.90%
International provisions of Tax Act (1.30%) (2.20%) 0.10%
Valuation allowance changes, net 0.70% 0.50% 0.50%
Non-deductible executive compensation 1.30% 3.80% 2.00%
Change in unrecognized tax benefits 0.70% 0.80% (0.10%)
Share Based Payments (0.50%) 0.20% (0.20%)
Note Exchanges 0.00% 0.00% 1.40%
Non-deductible goodwill 0.00% 3.50% 0.00%
Federal Credits (0.80%) (2.10%) (0.40%)
Other 0.10% (1.00%) 1.10%
Effective Income Tax Rate Reconciliation, Percent, Total 25.50% 29.10% 29.90%
v3.25.1
Segment Reporting - Additional Information (Detail)
 12 Months Ended
Feb. 01, 2025
Segment
Segment Reporting Information [Line Items]  
Number of operating segments 2
Number of reportable segments 2
v3.25.1
Segment Reporting - Summary of Reportable Segment Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Segment Reporting Information [Line Items]      
Net Revenue $ 5,328,652 $ 5,261,770 $ 4,989,833
Cost of sales, including certain buying, occupancy and warehousing costs 3,239,719 3,237,192 3,244,585
Selling, general and administrative expenses 1,431,814 1,433,300 1,269,095
Depreciation and amortization 212,255 226,866 206,897
Total segment operating income 868,630 839,534 652,080
Unallocated corporate expenses (423,766) (464,172) (382,824)
Impairment, restructuring and other charges [1] (17,561) (152,645) (22,209)
Operating income 427,303 222,717 247,047
Debt related charges     64,721
Interest (income) expense, net (7,769) (6,190) 14,297
Other (income), net (7,162) (10,951) (10,465)
Income before income taxes 442,234 239,858 178,494
Capital expenditures 222,573 174,437 260,378
General Corporate Expenses      
Segment Reporting Information [Line Items]      
Capital expenditures 55,114 40,317 35,544
Operating Segments | American Eagle      
Segment Reporting Information [Line Items]      
Net Revenue 3,385,231 3,361,579 3,262,893
Cost of sales, including certain buying, occupancy and warehousing costs 1,976,914 1,955,069 1,977,216
Selling, general and administrative expenses 727,590 729,519 677,451
Depreciation and amortization 74,220 77,195 66,820
Total segment operating income 606,507 599,796 541,406
Capital expenditures 86,953 61,139 85,033
Operating Segments | Aerie      
Segment Reporting Information [Line Items]      
Net Revenue 1,738,414 1,670,000 1,506,798
Cost of sales, including certain buying, occupancy and warehousing costs 1,018,418 1,009,650 999,654
Selling, general and administrative expenses 345,054 323,239 285,756
Depreciation and amortization 59,097 61,249 53,921
Total segment operating income 315,845 275,862 167,467
Capital expenditures 68,541 40,746 107,084
Other      
Segment Reporting Information [Line Items]      
Net Revenue 243,907 489,056 469,371
Total segment operating income (53,722) (36,124) (56,793)
Capital expenditures 11,965 32,235 32,717
Intersegment Elimination      
Segment Reporting Information [Line Items]      
Net Revenue $ (38,900) $ (258,865) $ (249,229)
[1] Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.
v3.25.1
Segment Reporting - Summary of Geographical Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Revenues From External Customers And Long Lived Assets [Line Items]      
Total net revenue $ 5,328,652 $ 5,261,770 $ 4,989,833
Long-lived assets, net:      
Total long-lived assets, net 2,046,664 1,990,041  
United States      
Revenues From External Customers And Long Lived Assets [Line Items]      
Total net revenue 4,492,630 4,424,345 4,268,114
Long-lived assets, net:      
Total long-lived assets, net 1,887,502 1,521,392  
Foreign      
Revenues From External Customers And Long Lived Assets [Line Items]      
Total net revenue [1] 836,022 837,425 $ 721,719
Long-lived assets, net:      
Total long-lived assets, net $ 159,162 $ 468,649  
[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.
v3.25.1
Impairment, Restructuring and Other Charges - Summary of Impairment and Restructuring Charges (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Charges recorded in operating expenses:      
Impairment and restructuring charges $ 17,561    
Asset impairment charges 6,353 $ 116,365 $ 20,633
Impairment, restructuring and other charges 17,561 141,695 22,209
Total Company impairment, restructuring and other charges [1] 17,561 152,645 22,209
U.S. and Canada Store Asset      
Charges recorded in operating expenses:      
Asset impairment charges [2]     10,368
Corporate      
Charges recorded in operating expenses:      
Impairment and restructuring charges 10,729 [3] 11,241 [4]  
International      
Charges recorded in cost of sales:      
Inventory charges [5]   10,950  
Hong Kong      
Charges recorded in operating expenses:      
Impairment and restructuring charges [6]   10,882 7,997
Asset impairment charges 6,400    
Hong Kong | Retail Operations      
Charges recorded in operating expenses:      
Impairment and restructuring charges [7] 6,832    
Quiet Platforms      
Charges recorded in operating expenses:      
Asset impairment charges $ 6,400 74,800 2,800
Impairment, restructuring and other charges [8]   $ 119,572 $ 3,844
[1] Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.
[2] For Fiscal 2022, $10.4 million of impairment charges, consisting of $9.2 million of ROU assets and $1.2 million of store property and equipment related to insufficient cash flows to support the asset value in the U.S. and Canada.
[3] The Company recorded restructuring costs of $10.7 million related to employee severance.
[4] $11.2 million, consisting of $6.0 million of employee severance related to corporate realignment and other asset impairment of $5.2 million of investments related to further strategic business changes.
[5] $11.0 million of inventory write-down charges related to our international businesses as further described in paragraph 1 of note (3) below.
[6] $10.9 million of charges related to exiting the Japan market, including the closure of all 4 stores in January 2024, as well as impairment related to our Hong Kong retail operations. Of this amount, $4.7 million related to Japan ROU assets, $3.6 million of Japan store property and equipment, $1.3 million of Hong Kong store ROU assets, and $1.3 million of employee severance. All impairments were recorded due to insufficient prospective cash flows to support the asset values. Additionally, we recorded $11.0 million of inventory write-down charges related to restructuring our international operations, which was recorded separately in Cost of Sales and discussed in note (1) above.

 

For Fiscal 2022, $7.5 million of store impairment due to insufficient prospective cash flows to support the asset values and $0.5 million of severance related to down-sizing Hong Kong retail operations.
[7] The Company recorded impairment and restructuring costs of $6.8 million related to the sale of the Company's Hong Kong retail operations to a third-party buyer. These costs primarily consist of impairment of $6.4 million and employee severance.
[8] $119.6 million of charges related to the Quiet Platforms restructuring. Of this amount, we impaired definite lived intangible assets of $40.5 million consisting of $31.2 million of customer relationships and $9.3 million of trade names. We also impaired $39.6 million of goodwill. We recorded $24.7 million of long-term asset impairment primarily related to technology which is no longer a part of the long-term strategy. All impairments were recorded due to insufficient prospective cash flows to support the asset value, resulting from the restructuring of Quiet Platforms. We recorded $9.9 million of severance based on this revised strategy. We also recorded $4.9 million of contract related charges.

 

For Fiscal 2022, impairment of $2.8 million consisting of $2.3 million of ROU asset and $0.5 million of property and equipment related to the closure of the Jacksonville, FL distribution center and severance of $1.0 million related to employees of that distribution center. The Jacksonville distribution center was replaced with a higher productivity location in Atlanta, GA.
v3.25.1
Impairment, Restructuring and Other Charges - Summary of Impairment and Restructuring Charges (Parenthetical) (Detail)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
USD ($)
Store
Feb. 03, 2024
USD ($)
Store
Jan. 28, 2023
USD ($)
Restructuring Cost And Reserve [Line Items]      
Impairment, restructuring and other charges $ 17,561 $ 141,695 $ 22,209
Impairment and restructuring charges 17,561    
Impairment charges $ 6,353 116,365 $ 20,633
Definite-lived impairment charges [1]   $ 40,533  
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] Impairment, restructuring and other charges Impairment, restructuring and other charges Impairment, restructuring and other charges
Goodwill impairment [2]   $ 39,598  
Number of retail stores | Store 1,500    
International      
Restructuring Cost And Reserve [Line Items]      
Inventory write-down charges [3]   10,950  
Japan      
Restructuring Cost And Reserve [Line Items]      
Impairment of operating lease ROU assets   300  
Hong Kong      
Restructuring Cost And Reserve [Line Items]      
Impairment and restructuring charges [4]   10,882 $ 7,997
Impairment charges $ 6,400    
Long-term asset impairment   1,300  
Severance costs   1,300  
Corporate      
Restructuring Cost And Reserve [Line Items]      
Impairment and restructuring charges 10,729 [5] 11,241 [6]  
Severance costs 10,700 6,000  
Other assets   5,200  
Retail Operations | Hong Kong      
Restructuring Cost And Reserve [Line Items]      
Impairment and restructuring charges [7] 6,832    
Down Sizing Hong Kong Retail Operations | International      
Restructuring Cost And Reserve [Line Items]      
Severance costs     500
Japan Market Exit Costs      
Restructuring Cost And Reserve [Line Items]      
Impairment and restructuring charges   $ 10,900  
Number of retail stores | Store   4  
Japan Market Exit Costs | Japan      
Restructuring Cost And Reserve [Line Items]      
Impairment of operating lease ROU assets   $ 4,700  
Retail Stores | International      
Restructuring Cost And Reserve [Line Items]      
Impairment and restructuring charges     7,500
Retail Stores | Hong Kong      
Restructuring Cost And Reserve [Line Items]      
Impairment of operating lease ROU assets   1,300  
Quiet Platforms      
Restructuring Cost And Reserve [Line Items]      
Impairment, restructuring and other charges [8]   119,572 3,844
Impairment charges 6,400 74,800 2,800
Definite-lived impairment charges $ 0 $ 40,500 0
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]   Impairment, restructuring and other charges  
Long-term asset impairment   $ 24,700  
Goodwill impairment   39,600  
Contract related charges   4,900  
Severance costs   9,900  
Impairment of operating lease ROU assets     2,300
Quiet Platforms | Jacksonville, FL Distribution Center      
Restructuring Cost And Reserve [Line Items]      
Severance costs     1,000
Customer Relationships | Quiet Platforms      
Restructuring Cost And Reserve [Line Items]      
Definite-lived impairment charges   31,200  
Trade Names | Quiet Platforms      
Restructuring Cost And Reserve [Line Items]      
Definite-lived impairment charges   9,300  
U.S. and Canada Store Asset      
Restructuring Cost And Reserve [Line Items]      
Impairment charges [9]     10,368
Impairment of operating lease ROU assets     9,200
Store Property and Equipment | Retail Stores | Japan Market Exit Costs | Japan      
Restructuring Cost And Reserve [Line Items]      
Impairment charges   $ 3,600  
Store Property and Equipment | U.S. and Canada Store Asset      
Restructuring Cost And Reserve [Line Items]      
Impairment charges     1,200
Property and Equipment | Quiet Platforms | Jacksonville, FL Distribution Center      
Restructuring Cost And Reserve [Line Items]      
Impairment charges     $ 500
[1] Impairment included $31.2 million of customer relationships and $9.3 million of trade names related to Quiet Platforms recorded in Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information
[2] Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.
[3] $11.0 million of inventory write-down charges related to our international businesses as further described in paragraph 1 of note (3) below.
[4] $10.9 million of charges related to exiting the Japan market, including the closure of all 4 stores in January 2024, as well as impairment related to our Hong Kong retail operations. Of this amount, $4.7 million related to Japan ROU assets, $3.6 million of Japan store property and equipment, $1.3 million of Hong Kong store ROU assets, and $1.3 million of employee severance. All impairments were recorded due to insufficient prospective cash flows to support the asset values. Additionally, we recorded $11.0 million of inventory write-down charges related to restructuring our international operations, which was recorded separately in Cost of Sales and discussed in note (1) above.

 

For Fiscal 2022, $7.5 million of store impairment due to insufficient prospective cash flows to support the asset values and $0.5 million of severance related to down-sizing Hong Kong retail operations.
[5] The Company recorded restructuring costs of $10.7 million related to employee severance.
[6] $11.2 million, consisting of $6.0 million of employee severance related to corporate realignment and other asset impairment of $5.2 million of investments related to further strategic business changes.
[7] The Company recorded impairment and restructuring costs of $6.8 million related to the sale of the Company's Hong Kong retail operations to a third-party buyer. These costs primarily consist of impairment of $6.4 million and employee severance.
[8] $119.6 million of charges related to the Quiet Platforms restructuring. Of this amount, we impaired definite lived intangible assets of $40.5 million consisting of $31.2 million of customer relationships and $9.3 million of trade names. We also impaired $39.6 million of goodwill. We recorded $24.7 million of long-term asset impairment primarily related to technology which is no longer a part of the long-term strategy. All impairments were recorded due to insufficient prospective cash flows to support the asset value, resulting from the restructuring of Quiet Platforms. We recorded $9.9 million of severance based on this revised strategy. We also recorded $4.9 million of contract related charges.

 

For Fiscal 2022, impairment of $2.8 million consisting of $2.3 million of ROU asset and $0.5 million of property and equipment related to the closure of the Jacksonville, FL distribution center and severance of $1.0 million related to employees of that distribution center. The Jacksonville distribution center was replaced with a higher productivity location in Atlanta, GA.
[9] For Fiscal 2022, $10.4 million of impairment charges, consisting of $9.2 million of ROU assets and $1.2 million of store property and equipment related to insufficient cash flows to support the asset value in the U.S. and Canada.
v3.25.1
Impairment, Restructuring and Other Charges - Rollforward of Restructuring Liabilities Recognized in Consolidated Balance Sheets (Detail)
$ in Thousands
 12 Months Ended
Feb. 01, 2025
USD ($)
Restructuring and Related Activities [Abstract]  
Accrued liability as of February 3, 2024 $ 11,414
Add: Costs incurred, excluding non-cash charges 10,728
Less: Cash payments and adjustments (14,492)
Accrued liability as of February 1, 2025 $ 7,650
v3.25.1
Subsequent Events - Additional Information (Details) - USD ($)
$ in Thousands, shares in Millions
 12 Months Ended
Mar. 17, 2025
Feb. 01, 2025
Feb. 03, 2024
Jan. 28, 2023
Mar. 14, 2025
Mar. 11, 2025
Jun. 30, 2022
Subsequent Event [Line Items]              
Payments for share repurchase   $ 190,912 $ 10,666 $ 9,780      
Credit Facilities | Credit Agreement              
Subsequent Event [Line Items]              
Loans and letters of credit maximum borrowing capacity             $ 700,000
Subsequent Event              
Subsequent Event [Line Items]              
Authorized repurchases, amount           $ 50,000  
Remaining authorized repurchases, amount           $ 68,500  
Subsequent Event | ASR Agreement              
Subsequent Event [Line Items]              
Percenatge of shares that are expected to be repurchased 80.00%            
Subsequent Event | ASR Agreement | Bank of America              
Subsequent Event [Line Items]              
Authorized repurchases, amount         $ 200,000    
Payments for share repurchase $ 200,000            
Repurchase od shares of its common 14.5