Investor P Prese sent ntat ation Ap Apri ril 2020 2020 For - PowerPoint PPT Presentation

Investor P Prese sent ntat ation Ap Apri ril 2020 2020

For orwa ward Loo Lookin king Statements SAFE HARBO RBOR R STATEM EMENT ENT UNDER T NDER THE PRI RIVATE SEC ECURI RITIES LITIGATION N REF REFORM RM ACT OF 1995 This presentation and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which are based on the views and beliefs of management, as well as assumptions and estimates made by management.. All forward- looking statements made by the company involve material risks and uncertainties and are subject to change based on many important factors, some of which may be beyond the company’s control. Words such as "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," “potential,” “will,” and similar expressions may identify forward-looking statements. Our forward-looking statements include, but are not limited to, statements regarding our corporate strategy and the ability of our offering of new convertible senior unsecured notes to minimize COVID-19 business disruptions. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of the company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020 and our subsequent reports filed with the SEC, in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results to differ materially from those expressed or implied in any of the forward-looking statements included in this presentation or otherwise made by management: the anticipated impact to consumer demand and our supply chain due to the spread of the coronavirus (COVID-19); the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate customer demand and changing fashion trends and to manage our inventory commensurately; seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic; our inability to respond to changes in e-commerce and leverage omni-channel demands; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; challenges with information technology systems, including safeguarding against security breaches; and changes in global economic and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity. NON ON-GAAP AAP FINANCIAL AL MEAS ASURES This presentation contains certain financial measures that differ from what is reported under generally accepted accounting principles (“GAAP”). These non- GAAP financial measures include adjusted EBITDA, free cash flow and levered adjusted free cash flow, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting, and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A reconciliation of the Company's non-GAAP measures used in these materials to the most directly comparable GAAP financial measures has been provided to you in the appendix to this presentation. 1

Compan any O Overvie iew Bu Busin iness D Des escrip iptio ion Two H High ighly ly-Recogniz ized Lea Leadin ing Bra Brands  AE AEO operates two of the most popular brands in the market today, American Eagle and Aerie − Amer erican Eagl gle , famous for its leading jeans collection, ~$3.5B ~$3. 5B ~$800M 2019 Revenue ~$800 2019 Revenue also offers a broad assortment of clothing and accessories aimed at 15 to 25 year olds − Aerie rie , rooted in body positivity and empowerment, is one of the fastest growing specialty retail brands. We Our brands are connected under the core tenet of REAL, offer intimates, soft apparel, sleepwear, swim and which is inclusive, optimistic and celebrates self-expression. personal care products Our purpose is to show the world that there’s REAL power in  Broad customer reach through a strong digital business, the optimism of youth. leading omni-channel capabilities and a fleet of 1,095 company-owned stores and 217 licensed store locations His istoric rical P Per erformance Marke ket-Lea Leadi ding O g Online e Presence FY19 Online P e Penetra ratio ion 33% 33% $4,308 Online $4,036 Q4’19 AEO $3,796 Penetration $3,610 $3,522 online penetration 29% 14.2% 13.3% 13.0% 12.6% 11.5% 46% 6% 2015A 2016A 2017A 2018A 2019A Q4’19 Aerie online Stores Revenue Adj. EBITDA Margin penetration 71% Comp Com 7.0% 3.0% 4.0% 8.0% 3.0% Sales: 2

20 Quarters s of P f Positiv ive C Comp Sale ales Consolida idated A ed AEO C Comp S Sales les 11% 9% 9% 9% 8% 8% 7% 6% 6% 6% 5% 4% 3% 3% 2% 2% 2% 2% 2% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015A 2016A 2017A 2018A 2019A American E Eagl gle e Bra Brand Comp S Sales les 10% 8% 7% 7% 5% 5% 4% 4% 4% 3% 3% 2% 1% 1% 0% 0% (1%) (1%) (1%) (3%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015A 2016A 2017A 2018A 2019A Aer erie e Bra Brand d Comp S Sales les 38% 34% 32% 32% 27% 26% 26% 26% 25% 24% 23% 21% 21% 20% 19% 18% 17% 16% 14% 12% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015A 2016A 2017A 2018A 2019A 3

Americ Amer ican Eagle Eagle - Favorit ite A Apparel l Bran and ~$3.5 billion in annual revenue –  consistent brand growth fueled by leading jeans and bottoms businesses 26 consecutive quarters of record  jeans sales Strong product innovation – high-  quality fabrics, fit, style + affordability Focus on outfitting centered on jeans  A favorite apparel brand among teens  based on AE ’s focus on individual self- expression 1 4 1 Piper Sandler Taking Stock With Teens Survey – April 8, 2020.

AEO AEO is a F is a Fav avorit ite Amo Among Tee eens Pop opular Acr r Acros oss Genders Top 1 10 Favor vorite Apparel B Brands s – Spr Spring 2020 2020 Rank Retailer % % Change YoY #1 #1 1 Nike 25% 3%  2 Amer erican n Eagl gle 10% 0% 1% 1%  with Females 3 Adidas 5% - - 4 Hollister 4% 1%  5 PacSun 3% - - 6 lululemon 3% - - #3 #3 7 Forever 21 3% (2%)  8 Urban Outfitters 3% - - with Males 9 H&M 2% - - 10 Vans 2% n/a - AEO continues to own a large portion of the teen clothing wallet Annu nual T Teen n Spen ending ng 1 Clothi hing ng S Share o of Wallet 1 AEO Cus Custome mer Spe pend d 2 $2,300 $2,3 00 ~19% 19% $4 $437 37 ~40% 0% $174 $174 Total Clothing Wallet 5 1 Piper Sandler Taking Stock With Teens Survey – April 8, 2020. 2 AEO Customer Analytics – Trailing Twelve Month KPIs through February 2020.

Aerie – A Ae A Top op Per erfor former i in S Spe pecialty R Reta tail 21 consecutive quarters of double-digit  growth Well positioned intimates brand rooted  in body positivity and women’s empowerment Strong customer following –  acquisitions increasing at a double digit pace Expanding market presence, fueled by  store growth and online penetration (46% of revenue in Q4‘19) Successful product extensions across  apparel, fitness, intimates, swim and accessories Increasing brand profit and margins as  business scales up 6