American Eagle Outfitters 2000 Annual Report Download

Download and view the complete annual report

Please find the complete 2000 American Eagle Outfitters annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

ALIVE
AE Annual Report 2000
www.ae.com

Table of contents

  • Page 1
    ALIVE AE Annual Report 2000 www.ae.com

  • Page 2

  • Page 3
    ...'s Discussion and Analysis 63 Directors and Officers 06 AE 2000 in Review 39 Consolidated Financial Statements 64 Stockholder Information 11 Letter to Our Stockholders 66 Retail Store Locations 61 Market Price Information 15 AE is Alive 62 Management and Independent Auditors' Reports

  • Page 4
    www.ae.com ii AE

  • Page 5

  • Page 6
    AE Annual Report 2000 SELECTED CONSOLIDATED FINANCIAL DATA For the years ended In thousands, except per share amounts and square foot data Feb 3, 2001 (1)(2) Jan 29, 2000 Jan 30, 1999 Jan 31, 1998 Feb 1, 1997 Summary of Operations Net sales Comparable store sales increase (decrease) (3) ...

  • Page 7
    ... per share amounts and square foot data Feb 3, 2001 (1)(2) Jan 29, 2000 Jan 30, 1999 Jan 31, 1998 Feb 1, 1997 Balance Sheet Information Total assets Total cash and short-term investments Working capital Stockholders' equity Long-term debt Current ratio Average return on stockholders' equity...

  • Page 8
    AE FINANCIAL DATA '96 '97 '98 '99 '00 In millions $ 1,093.5 $832.1 $587.6 NET SALES $ GROSS PROFIT $405.7 $326.4 $ 436.2 $356.5 $234.5 $ NET INCOME $137.0 $98.8 $ 93.8 $90.7 $54.1 $ STOCKHOLDERS' EQUITY $19.5 $5.9 $ 367.7 $264.5 $ AE $151.2 $90.8 $71.1 04 www.ae.com

  • Page 9

  • Page 10
    ... ALIVE perfectly describes our brand and culture. We estimate our combined advertising efforts consisting of national magazine advertising, direct mail, email, radio, and the AE Magazine made 142 million impressions on the AE target customer in 2000. AE 06 www.ae.com Jason Biggs image provided...

  • Page 11
    ... ae.com with our existing operation will set the stage for future success. ae.com In November 2000, we entered the Canadian market by acquiring the 109 store Thriftys/Bluenotes chain and prime mall real estate. We plan to expand AE into Canada with 46 locations by backto-school 2001. www.ae.com...

  • Page 12

  • Page 13

  • Page 14

  • Page 15
    .... In 2001, we look forward to moving our design headquarters to a new location on Fifth Avenue in New York City. Our new facility is bigger, brighter, and there's room to grow our business. Our core customers, men and women in the 16-34 age-range, are a powerful demographic group.They care a lot...

  • Page 16
    ... chain, an established Canadian brand and a profitable retail business; 57 Braemar stores, with excellent real estate in prime mall locations, of which 46 will be converted to American Eagle stores in 2001; and National Logistics Services, a 420,000 square foot distribution center near Toronto...

  • Page 17

  • Page 18

  • Page 19
    We are...

  • Page 20

  • Page 21
    confident

  • Page 22
    passionate

  • Page 23

  • Page 24
    focused

  • Page 25

  • Page 26

  • Page 27
    energized

  • Page 28
    vivacious

  • Page 29

  • Page 30

  • Page 31
    free spirited

  • Page 32

  • Page 33
    ALIVE

  • Page 34
    AE Annual Report 2000

  • Page 35
    AE Annual Report 2000 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview Internet web site, ae.com. In Fiscal 2000, sales from our site increased over 600%. We promoted our brand through print media by increasing magazine advertising circulation by 33% ...

  • Page 36
    ... the increased sales volume and incentive programs that reward employees for the achievement of key performance indicators, • $8.2 million for direct mail, signage, promotional advertising, and catalog and non-store advertising, • $7.2 million in additional outside service costs to support...

  • Page 37
    ..., and $8.5 million to purchase an import services company, Blue Star Imports. The remainder of the cash ï¬,ow provided by operating activities is being retained for new store growth, store remodels, system enhancements, and other capital expenditures.We fund merchandise purchases through operating...

  • Page 38
    ... certain holiday seasons, the number and timing of new store openings, the amount of net sales contributed by new and existing stores, the timing and level of markdowns, store closings, refurbishments and relocations, competitive factors, weather and general economic conditions. AE 34 www.ae.com

  • Page 39

  • Page 40

  • Page 41

  • Page 42

  • Page 43
    CONSOLIDATED FINANCIAL STATEMENTS American Eagle Outfitters, Inc. AE Annual Report 2000 FY 2000 www.ae.com 39 AE

  • Page 44
    AE Annual Report 2000 Consolidated Financial Statements American Eagle Outfitters, Inc. Consolidated Balance Sheets Feb 3, 2001 In thousands Jan 29, 2000 Jan 30, 1999 Assets Current assets: Cash and cash equivalents Short-term investments Merchandise inventory Accounts and note receivable, ...

  • Page 45
    AE Annual Report 2000 Consolidated Financial Statements American Eagle Outfitters, Inc. Consolidated Statements of Operations For the years ended In thousands, except per share amounts Feb 3, 2001 Jan 29, 2000 Jan 30, 1999 Net sales Cost of sales, including certain buying, occupancy and ...

  • Page 46
    ... 70 million and 69 million (adjusted for stock splits) at January 29, 2000 and January 30, 1999, respectively.The Company has 5 million authorized, with none issued or outstanding, $.01 par value preferred stock at February 3, 2001. See Notes to Consolidated Financial Statements AE 42 www.ae.com

  • Page 47
    ... inventory Accounts and note receivable Prepaid expenses and other Accounts payable Unredeemed stored value cards Accrued liabilities Total adjustments Net cash provided by operating activities Investing activities Capital expenditures Purchase of an import services company, Blue Star Imports...

  • Page 48
    ... 2001 1. Business Operations American Eagle Outfitters, Inc. (the "Company") designs, markets, and sells its AE brand of relaxed, clean, and versatile clothing for 16 to 34 year olds in its United States retail stores.We also operate via the Internet at ae.com. The AE brand provides high-quality...

  • Page 49
    ...and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Recent Financial Accounting Standards Board...

  • Page 50
    AE Annual Report 2000 Consolidated Financial Statements Merchandise Inventory Merchandise inventory is valued at the lower of average cost or market, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company reviews its inventory ...

  • Page 51
    AE Annual Report 2000 Consolidated Financial Statements Advertising Costs Advertising costs are expensed as incurred. Advertising expense is summarized as follows: For the years ended In thousands Feb 3, 2001 Jan 29, 2000 Jan 30, 1999 Advertising expense $36,262 $27,243 $16,431 ...

  • Page 52
    ...convert certain retail locations to American Eagle retail stores. Management has finalized and approved the plan related to this conversion. Accordingly, the Company accrued approximately $7.3 million in exit costs consisting primarily of operating losses of the discontinued businesses, lease costs...

  • Page 53
    ...follow: stores are closed and the store locations are turned over to the Company for conversion to American Eagle stores. Compensation is determined by several factors, including proceeds from the sale of inventory and store performance versus plan. During Fiscal 2000, the Company paid $0.1 million...

  • Page 54
    AE Annual Report 2000 Consolidated Financial Statements 6. Property and Equipment Property and equipment consists of the following: Feb 3, 2001 In thousands Jan 29, 2000 Jan 30, 1999 Land Buildings Leasehold improvements Fixtures and equipment Subtotal Less: Accumulated depreciation and ...

  • Page 55
    ... million as of February 3, 2001. The facility requires annual payments of $4.3 million and matures in December 2007.The term facility bears interest at the one-month Bankers' Acceptance Rate (5.50% at February 3, 2001) plus 140 basis points. Interest paid under the term facility was $0.3 million for...

  • Page 56
    AE Annual Report 2000 Consolidated Financial Statements 9. Leases All store operations are conducted from leased premises.These leases generally provide for base rentals and the payment of a percentage of sales as additional rent when sales exceed specified levels. Minimum rentals relating to ...

  • Page 57
    AE Annual Report 2000 Consolidated Financial Statements 10. Income Taxes The significant components of the Company's deferred tax assets (there are no deferred tax liabilities) were as follows: Feb 3, 2001 In thousands Jan 29, 2000 Jan 30, 1999 Current Inventories Accrued rent Salaries and ...

  • Page 58
    AE Annual Report 2000 Consolidated Financial Statements Significant components of the provision for income taxes are as follows: For the years ended In thousands Feb 3, 2001 Jan 29, 2000 Jan 30, 1999 Current Federal State Total current...vested restricted stock grants and stock options ...

  • Page 59
    ... years old, have completed sixty days of service, and work on average twenty hours a week. Contributions are determined by the employee, with a maximum of $60 per pay period, with the Company matching 15% of the investment.These contributions are used to purchase shares of Company stock in the open...

  • Page 60
    AE Annual Report 2000 Consolidated Financial Statements Pro forma information regarding net income and earnings per share is required by SFAS No. 123, which also requires that the information be determined as if the Company has accounted for its employee stock options granted beginning in the fi...

  • Page 61
    ... weighted-average remaining contractual lives approximating 10 years. (4) As of February 3, 2001, the exercise price of 774,212 options exercisable ranged between $0.93 and $5.94.The exercise price of 725,285 options ranged between $11.79 and $21.79. Restricted Stock Grants The Company maintains...

  • Page 62
    ...two stock split from February 2001. (2) Quarters are presented in 13-week periods consistent with the Company's fiscal year discussed in Note 2 of the Consolidated Financial Statements, except for the fourth quarter ended February 3, 2001, which is presented as a 14-week period. AE 58 www.ae.com

  • Page 63

  • Page 64

  • Page 65
    ...the range of high and low sales prices of the common stock as reported on The Nasdaq National Market during the periods indicated. As of March 20, 2001, there were 186 stockholders of record. However, when including associates who own shares through the Company's 401(k) retirement plan and employee...

  • Page 66
    ... the Board of Directors, consisting of independent directors, meets periodically with management and independent auditors to review matters relating to our financial reporting, the adequacy of internal accounting controls and the scope and results of audit work. Ernst & Young LLP, Certified Public...

  • Page 67
    ... Corporation David W.Thompson President of Value City Furniture Gerald E.Wedren President of Craig Capital Co. Jay L. Schottenstein Chairman of the Board and Chief Executive Officer Saul Schottenstein Vice Chairman George Kolber Vice Chairman of the Company and CEO of Value City Department Stores...

  • Page 68
    ...Morris & Arthur 41 South High Street Columbus, OH 43215-6194 National City Bank Stock Transfer Department P.O. Box 92301 Cleveland, OH 44193-0900 (800) 622-6757 Headquarters of the Company American Eagle Outfitters 150 Thorn Hill Drive Warrendale, PA 15086-7528 (724) 776-4857 AE 64 www.ae.com

  • Page 69

  • Page 70
    109 CANADA Ontario 49 stores British Columbia 17 stores Nova Scotia 9 stores New Brunswick 4 stores Alberta 15 stores Saskatchewan 7 stores Newfoundland 3 stores Manitoba 5 stores THRIFTYS/BLUENOTES STORES AMERICAN EAGLE STORES 554 US 21-40 STORES 11-20 STORES 1-10 STORES PA 39 stores MA...

  • Page 71
    get into AE gear > Get into our gear and feel alive. Please accept this $10 gift card as an invitation to shop in our stores or online at www.ae.com.

  • Page 72