Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 03, 2024 | Mar. 11, 2024 | Jul. 29, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 03, 2024 | ||
Document Fiscal Year Focus | 2023 | ||
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 | --02-03 | ||
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 | 197,156,524 | ||
Entity Public Float | $ 2,550,643,168 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Security Exchange Name | NYSE | ||
Entity File Number | 1-33338 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-2721761 | ||
Entity Address, Address Line One | 77 Hot Metal Street | ||
Entity Address, City or Town | Pittsburgh | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15203-2329 | ||
City Area Code | 412 | ||
Local Phone Number | 432-3300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Company’s definitive proxy statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III herein of this Annual Report on Form 10-K. The registrant expects to file such definitive proxy statement with the Securities and Exchange Commission within 120 days of its fiscal year ended February 3, 2024 . | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Pittsburgh, Pennsylvania |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 354,094 | $ 170,209 | |
Short-term investments | 100,000 | ||
Merchandise inventory | 640,662 | 585,083 | |
Accounts receivable, net | 247,934 | 242,386 | |
Prepaid expenses and other | 90,660 | 102,563 | |
Total current assets | 1,433,350 | 1,100,241 | |
Operating lease right-of-use assets | 1,005,293 | 1,086,999 | |
Property and equipment, at cost, net of accumulated depreciation | 713,336 | 781,514 | |
Goodwill, net | 225,303 | 264,945 | [1] |
Non-current deferred income taxes | 82,064 | 36,483 | |
Intangible assets, net | 46,109 | 94,536 | |
Other assets | 52,454 | 56,238 | |
Total assets | 3,557,909 | 3,420,956 | |
Current liabilities: | |||
Accounts payable | 268,308 | 234,340 | |
Current portion of operating lease liabilities | 284,508 | 337,258 | |
Accrued compensation and payroll taxes | 152,353 | 51,912 | |
Unredeemed gift cards and gift certificates | 66,285 | 67,618 | |
Accrued income and other taxes | 46,114 | 10,919 | |
Other current liabilities and accrued expenses | 73,604 | 66,901 | |
Total current liabilities | 891,172 | 768,948 | |
Non-current liabilities: | |||
Non-current operating lease liabilities | 901,122 | 1,021,200 | |
Long-term debt, net | 8,911 | ||
Other non-current liabilities | 28,856 | 22,734 | |
Total non-current liabilities | 929,978 | 1,052,845 | |
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; 196,936 and 195,064 shares outstanding, respectively | 2,496 | 2,496 | |
Contributed capital | 360,378 | 341,775 | |
Accumulated other comprehensive loss | (16,410) | (32,630) | |
Retained earnings | 2,214,159 | 2,137,126 | |
Treasury stock, 52,630 and 54,502 shares, respectively, at cost | (823,864) | (849,604) | |
Total stockholders' equity | 1,736,759 | 1,599,163 | |
Total liabilities and stockholders’ equity | $ 3,557,909 | $ 3,420,956 | |
[1] Beginning balances for both periods include accumulated impairment of $ 4.2 million. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 |
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 | 196,936,000 | 195,064,000 | 168,699,000 |
Treasury stock, shares | 52,630,000 | 54,502,000 | 80,867,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Statement [Abstract] | |||
Total net revenue | $ 5,261,770 | $ 4,989,833 | $ 5,010,785 |
Cost of sales, including certain buying, occupancy and warehousing expenses | 3,237,192 | 3,244,585 | 3,018,995 |
Gross profit | 2,024,578 | 1,745,248 | 1,991,790 |
Selling, general and administrative expenses | 1,433,300 | 1,269,095 | 1,222,000 |
Impairment, restructuring and other charges | 141,695 | 22,209 | 11,944 |
Depreciation and amortization expense | 226,866 | 206,897 | 166,781 |
Operating income | 222,717 | 247,047 | 591,065 |
Debt related charges | 64,721 | ||
Interest (income) expense, net | (6,190) | 14,297 | 34,632 |
Other income, net | (10,951) | (10,465) | (2,489) |
Income before income taxes | 239,858 | 178,494 | 558,922 |
Provision for income taxes | 69,820 | 53,358 | 139,293 |
Net income | $ 170,038 | $ 125,136 | $ 419,629 |
Basic net income per common share | $ 0.87 | $ 0.69 | $ 2.5 |
Diluted net income per common share | $ 0.86 | $ 0.64 | $ 2.03 |
Weighted average common shares outstanding - basic | 195,646 | 181,778 | 168,156 |
Weighted average common shares outstanding - diluted | 196,863 | 205,226 | 206,529 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 170,038 | $ 125,136 | $ 419,629 |
Other comprehensive gain (loss): | |||
Foreign currency translation gain (loss) | 16,220 | 8,215 | (97) |
Other comprehensive gain (loss) | 16,220 | 8,215 | (97) |
Comprehensive income | $ 186,258 | $ 133,351 | $ 419,532 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ 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. 30, 2021 | $ 1,086,665 | $ 2,496 | $ 663,718 | $ 1,868,613 | $ (1,407,414) | $ (40,748) | |||
Beginning Balance (in shares) at Jan. 30, 2021 | 166,335,000 | ||||||||
Stock awards | 37,887 | 37,887 | |||||||
Repurchase of common stock from employees | (24,018) | (24,018) | |||||||
Repurchase of common stock from employees (in shares) | (781,000) | ||||||||
Reissuance of treasury stock | $ 14,533 | (59,384) | 26,490 | 47,427 | |||||
Reissuance of treasury stock (in shares) | 2,798,000 | 2,798,000 | |||||||
Equity portion of partial extinguishment of Convertible Senior Notes, net of tax | $ 3,018 | (9,876) | 6,995 | 5,899 | |||||
Equity portion of partial extinguishment of Convertible Senior Notes, net of tax, (in shares) | 347,000 | ||||||||
Net Income (Loss) | 419,629 | 419,629 | |||||||
Other comprehensive income (loss) | (97) | (97) | |||||||
Cash dividends and dividend equivalents | (113,945) | 4,010 | (117,955) | ||||||
Ending 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) |
Ending Balance (in shares) at Jan. 29, 2022 | 168,699,000 | 168,699,000 | |||||||
Stock awards | $ 38,148 | 38,148 | |||||||
Repurchase of common stock from employees | (9,780) | (9,780) | |||||||
Repurchase of common stock from employees (in shares) | (584,000) | ||||||||
Reissuance of treasury stock | $ 1,599 | (24,642) | (1,624) | 27,865 | |||||
Reissuance of treasury stock (in shares) | 1,643,000 | 1,643,000 | |||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | ||||||||
Accelerated share repurchase | $ (200,000) | ||||||||
Accelerated share repurchase (Shares) | (17,023,000) | ||||||||
Redemption/Exchange of Convertible Senior Notes | 323,482 | (244,198) | (142,737) | 710,417 | |||||
Redemption/Exchange of Convertible Senior Notes (in shares) | 42,329,000 | ||||||||
Net Income (Loss) | 125,136 | 125,136 | |||||||
Other comprehensive income (loss) | 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 | 195,064,000 | 195,064,000 | |||||||
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) | (1,000,000) | ||||||||
Repurchase of common stock from employees | (10,666) | (10,666) | |||||||
Repurchase of common stock from employees (in shares) | (766,000) | ||||||||
Reissuance of treasury stock | $ 6,585 | (28,038) | (4,936) | 39,559 | |||||
Reissuance of treasury stock (in shares) | 2,539,000 | 2,539,000 | |||||||
Redemption/Exchange of Convertible Senior Notes | $ 8,690 | (6,281) | (2,137) | 17,108 | |||||
Redemption/Exchange of Convertible Senior Notes (in shares) | 1,099,000 | ||||||||
Net Income (Loss) | 170,038 | 170,038 | |||||||
Other comprehensive income (loss) | 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 | 196,936,000 | 196,936,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends and dividend equivalents, Per share | $ 0.425 | $ 0.36 | $ 0.6775 |
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 | 196,936,000 | 195,064,000 | 168,699,000 |
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 | 52,630,000 | 54,502,000 | 80,867,000 |
Reissuance of treasury stock, shares | 2,539,000 | 1,643,000 | 2,798,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Operating activities: | |||
Net income | $ 170,038 | $ 125,136 | $ 419,629 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Depreciation and amortization | 235,213 | 212,499 | 171,151 |
Share-based compensation | 51,067 | 38,986 | 38,153 |
Deferred income taxes | (43,456) | 31,049 | (12,850) |
Impairment of assets | 116,365 | 20,633 | 11,944 |
Exchange of convertible senior notes | 60,341 | ||
Changes in assets and liabilities: | |||
Accounts receivable | (5,820) | 43,851 | (117,840) |
Merchandise inventory | (46,304) | (38,364) | (147,140) |
Operating lease assets | 230,659 | 345,798 | 296,652 |
Operating lease liabilities | (326,571) | (361,142) | (352,547) |
Other assets | 17,473 | 26,280 | (16,312) |
Accounts payable | 33,432 | 2,019 | (36,192) |
Accrued compensation and payroll taxes | 100,223 | (90,114) | (1,412) |
Accrued and other liabilities | 48,391 | (10,676) | 50,435 |
Net cash provided by operating activities | 580,710 | 406,296 | 303,671 |
Investing activities: | |||
Acquisitions of businesses, net of cash acquired | (358,151) | ||
Capital expenditures for property and equipment | (174,437) | (260,378) | (233,847) |
Purchase of available-for-sale investments | (100,000) | (75,000) | |
Sale of available-for-sale investments | 75,000 | ||
Other investing activities | (12,995) | (997) | (2,603) |
Net cash used for investing activities | (287,432) | (261,375) | (594,601) |
Financing activities: | |||
Accelerated share repurchase | (200,000) | ||
Principal paid in connection with exchange of convertible senior notes due 2025 | (136,419) | ||
Cash dividends paid | (83,825) | (64,767) | (113,945) |
Repurchase of common stock from employees | (10,666) | (9,780) | (24,018) |
Repurchase of common stock as part of publicly announced programs | (20,261) | ||
Net proceeds from stock options exercised | 7,646 | 2,089 | 13,065 |
Proceeds from revolving line of credit and convertible senior notes, net | 30,000 | ||
Principal payments on revolving line of credit | (30,000) | ||
Other financing activities | (2,368) | 984 | (299) |
Net cash (used for) financing activities | (109,474) | (407,893) | (125,197) |
Effect of exchange rates on cash | 81 | (1,589) | 420 |
Net change in cash and cash equivalents | 183,885 | (264,561) | (415,707) |
Cash and cash equivalents - beginning of period | 170,209 | 434,770 | 850,477 |
Cash and cash equivalents - end of period | $ 354,094 | $ 170,209 | $ 434,770 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 170,038 | $ 125,136 | $ 419,629 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Feb. 03, 2024 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Rule 10b5 - 1 Trading Plans During Fiscal 2023, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted, modified or terminated a "Rule 10b5 - 1 trading arrangement" or "non-Rule 105b-1 trading arrangement" (as those terms are defined in Item 408 of Regulation S-K). |
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 |
Business Operations
Business Operations | 12 Months Ended |
Feb. 03, 2024 | |
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, 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 more than 1,500 retail stores in the United States and internationally, online through our digital channels at www.ae.com and www.aerie.com , www.toddsnyder.com , www.unsubscribed.com 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 80 c ountries 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; “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. As e-commerce penetration and growth has normalized coming out of the COVID-19 pandemic, the supply chain landscape has continued to evolve. As a result of these changes, the Company has shifted strategy related to Quiet Platforms. Quiet Platforms is a regionalized fulfillment center network providing capacity, resilience, speed, and cost advantages. The network and related growth plans have been updated to reflect this refined focus. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2024 | |
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 3, 2024 , 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 2025" refers to the 52 week period that will end on January 31, 2026. "Fiscal 2024" refers to the 52-week period that will end on February 1, 2025. “Fiscal 2023” refers to the 53-week period ended on February 3, 2024. “Fiscal 2022” refers to the 52-week period ended January 28, 2023 . "Fiscal 2021" refers to the 52-week period ended January 29, 2022. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 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 Financial Standards Board 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 plans to adopt ASU 2023-07 effective for its Fiscal year 2024 and for the interim periods beginning in Fiscal 2025. Refer to Note 15 to the Consolidated Financial Statements for additional information regarding Segment Reporting. In December 2023, the Financial Standards Board 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 14 to the Consolidated Financial Statements for additional information regarding Income Taxes. 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 11 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 4 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 the fiscal year ended February 3, 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 3, 2024 and January 28, 2023, our allowance for credit losses was $ 12.7 million and $ 3.7 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 3, 2024, 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 assumption used in our fair value analysis is forecasted revenue. 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 7 to the Consolidated Financial Statements for additional information regarding property and equipment, and refer to Note 16 to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2023, Fiscal 2022 and Fiscal 2021. Goodwill and Intangible Assets The Company’s goodwill is primarily related to the acquisitions of Quiet Logistics and AirTerra in Fiscal 2021, 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 3, 2024 . As a result of the annual impairment test, the Company concluded that the goodwill assigned to the Quiet Platforms reporting unit was impaired, resulting in a charge of $ 39.6 M 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 the discount rate. There were no goodwill impairment charges recorded during Fiscal 2022 or Fiscal 2021. 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. During Fiscal 2023, the Company recorded a $ 40.5 M of definite-lived intangible asset impairment charge, related to the definite-lived intangible assets of Quiet Platforms, due to insufficient prospective cash flows to support the carrying value of the assets. No definite-lived intangible asset impairment charges were recorded during Fiscal 2022, or Fiscal 2021. Refer to Note 8 to the Consolidated Financial Statements for additional information regarding goodwill and intangible assets and refer to Note 16 to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2023. 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 10 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 both shared and unique benefits for loyalty members and credit card holders. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn 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 3, January 28, January 29, (In thousands) 2024 2023 2022 Beginning balance $ 10,369 $ 9,168 $ 8,377 Returns ( 161,833 ) ( 150,987 ) ( 149,988 ) Provisions 162,230 152,188 150,779 Ending balance $ 10,766 $ 10,369 $ 9,168 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 9 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 14 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 3, 2024 the Company had prepaid advertising costs of $ 7.6 million. As of January 28, 2023 , the Company had prepaid advertising expense of $ 6.1 million. All other advertising costs are expensed as incurred. The Company recognized $ 186.9 million, $ 175.2 million, and $ 173.6 million in advertising expense during Fiscal 2023, Fiscal 2022 , and Fiscal 2021, 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 Debt-related charges consist primarily of a $ 60.4 million induced conversion expense on the exchanges of the 2025 Notes, along with certain other costs related to actions we took to strengthen our capital structure during Fiscal 2022 . There were no debt related charges in Fiscal 2023 . Refer to Note 9 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, partially offset by interest expense related to the Company’s 2025 Notes and borrowings under our five-year, syndicated, asset-based revolving credit facilities. 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 (received) paid during the respective periods: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Cash (received) paid during the periods for: Income taxes $ 31,440 $ ( 22,109 ) $ 182,656 Interest $ 2,494 $ 15,435 $ 8,729 Segment Information The Company has identified two operating segments (American Eagle and Aerie brand) that also represent our reportable segments and reflect our Chief Operating Decision Maker'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 15 to the Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Feb. 03, 2024 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions On December 29, 2021 , the Company completed the acquisition of Quiet Logistics, Inc. and certain other strategic investments pursuant to a stock purchase agreement, dated as of November 1, 2021. Quiet Logistics operates a network of in-market fulfillment centers, locating products closer to need, creating inventory efficiencies, cost benefits and same-day and next-day delivery options to customers and stores. At the closing of the transaction, the Company acquired from the sellers all of the issued and outstanding shares of capital stock of Quiet Logistics and certain equity interests in two related strategic investments. The aggregate purchase price paid at the closing, after giving effect to estimated adjustments in respect of working capital and other customary matters, was approximately $ 360.6 million in cash. In accordance with ASC 805, Business Combinations ("ASC 805"), the total purchase price was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of the acquisition. Such estimated fair values require management to make estimates and judgments, especially with respect to intangible assets. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The following table summarizes the final fair values of the Quiet Logistics assets acquired and liabilities assumed at the acquisition date: Current assets: Cash and cash equivalents $ 3,857 Accounts Receivable 23,207 Prepaid expenses 3,210 Total current assets $ 30,274 Property and equipment $ 28,728 Intangible assets 51,500 Goodwill 248,798 Other long-term assets 118,550 Total Assets $ 477,850 Current liabilities $ 29,819 Total long-term liabilities 87,415 Total Liabilities $ 117,234 Total purchase price $ 360,616 The purchase price allocation included $ 51.5 million of acquired intangible assets, of which $ 39.0 million was assigned to customer relationships and $ 12.5 million was assigned to trade names, which were both recognized at fair value on the acquisition date. The fair value of the identifiable intangible assets was estimated using the income approach through a discounted cash flow analysis. The cash flows were based on estimates used to price the Quiet Logistics acquisition, and the discount rates applied were benchmarked with reference to the implied rate of return to the Company’s pricing model and the weighted-average cost of capital of 14.5 %. Additionally, the significant assumption used to determine the fair value of the customer relationships intangible asset was revenue growth. This significant assumption is forward-looking and could be affected by future economic and market conditions. The customer relationships and trade name intangible assets are subject to useful lives of 10 and 15 years, respectively. Deferred tax assets were increased by $ 6.3 million in Fiscal 2022 related to the finalization of the net operating loss ("NOL") benefit. In accordance with ASC 350, the $ 248.8 million of goodwill that was associated with the Quiet Logistics acquisition was assigned to the reporting units that benefited from the acquisition, namely the AE, Aerie and Quiet Platforms reporting units in the amounts of $ 101.6 million, $ 110.6 million and $ 36.6 million, respectively. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Quiet Logistics. No ne of the goodwill is expected to be deductible for income tax purposes. On May 3, 2021 , the Company completed the acquisition of AirTerra, Inc. AirTerra is a logistics and supply chain platform that solves e-commerce fulfillment and shipping challenges. The aggregate purchase price paid at closing was $ 3.0 million. As e-commerce penetration and growth has normalized coming out of the COVID-19 pandemic, the supply chain landscape has continued to evolve. As a result of these changes, the Company has shifted strategy related to Quiet Platforms. Quiet Platforms is a regionalized fulfillment center network providing capacity, resilience, speed, and cost advantages. The network and related growth plans have been updated to reflect this refined focus. The Company recorded $ 40.5 million impairment of intangible assets and $ 39.6 million goodwill impairment charge in Fiscal 2023. Refer to Note 16 to the Consolidated Financial Statements for additional information regarding this charge. |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-term Investments | 12 Months Ended |
Feb. 03, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Short-term Investments | 4. 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 3, January 28, (In thousands) 2024 2023 Cash and cash equivalents: Cash $ 162,279 $ 84,960 Interest-bearing deposits $ 191,815 85,249 Total cash and cash equivalents $ 354,094 $ 170,209 Short-term investments: Certificates of deposits $ 100,000 — Total short-term investments $ 100,000 — Total cash and short-term investments $ 454,094 $ 170,209 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 03, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. 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 4 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 3, 2024 (In thousands) Carrying Amount Quoted Market Significant Other Significant Cash and cash equivalents Cash $ 162,279 $ 162,279 — — Interest-bearing deposits 191,815 191,815 — — Total cash and cash equivalents $ 354,094 $ 354,094 — — Short-term investments: Certificates of deposits $ 100,000 $ 100,000 — — Total short-term investments $ 100,000 $ 100,000 — — Total cash and short-term investments $ 454,094 $ 454,094 — — Long-Term Debt As of February 3, 2024, 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 9 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 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) and Japan ROU assets ($ 4.7 million), Japan store property and equipment ($ 3.6 million) and Hong Kong store property and equipment of ($ 1.3 million). During Fiscal 2022 , the Company recorded asset impairment charges of $ 20.6 million, primarily related to retail store property and equipment, and operating lease ROU assets. 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. Refer to Note 16 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 2023 and Fiscal 2022 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. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Feb. 03, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 6. Earnings per Share The following is a reconciliation between basic and diluted weighted average shares outstanding: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Numerator: Net income and numerator for basic EPS $ 170,038 $ 125,136 $ 419,629 Add: Interest expense, net of tax, related to the 2025 Notes (1) 58 5,474 — Numerator for diluted EPS $ 170,096 $ 130,610 $ 419,629 Denominator: Denominator for basic EPS - weighted average shares 195,646 181,778 168,156 Add: Dilutive effect of the 2025 Notes (1) 205 21,507 34,003 Add: Dilutive effect of stock options and non-vested restricted stock 1,012 1,941 4,370 Denominator for diluted EPS - adjusted weighted average shares 196,863 205,226 206,529 Anti-dilutive shares (2) 1,289 2,182 202 (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 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 9 and Note 12 to the Consolidated Financial Statements for additional information regarding the 2025 Notes and share-based compensation, respectively. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Feb. 03, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | 7. Property and Equipment, net Property and equipment, net consists of the following: Fiscal Years Ending February 3, January 28, (In thousands) 2024 2023 Land $ 17,910 $ 17,910 Buildings 222,660 222,857 Leasehold improvements 850,519 822,292 Fixtures and equipment 1,335,173 1,635,897 Construction in progress 852 8,105 Property and equipment, at cost $ 2,427,114 $ 2,707,061 Less: Accumulated depreciation ( 1,713,778 ) ( 1,925,547 ) Property and equipment, net $ 713,336 $ 781,514 Depreciation expense is as follows: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Depreciation expense $ 230,833 $ 208,014 $ 161,492 Additionally, during Fiscal 2023, Fiscal 2022 and Fiscal 2021, the Company recorded $ 3.6 million, $ 4.4 million, and $ 4.4 million, respectively, related to asset write-offs within depreciation and amortization expense. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 12 Months Ended |
Feb. 03, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | 8. Goodwill and Intangible Assets, net Goodwill and definite-lived intangible assets, net consist of the following: Fiscal Years Ending February 3, 2024 January 28, 2023 (In thousands) American Eagle Aerie Corporate and Other (3) Total American Eagle Aerie Corporate and Other (3) Total Goodwill, beginning balance (1) $ 114,747 $ 110,600 $ 39,598 $ 264,945 $ 114,883 $ 110,600 $ 45,933 $ 271,416 Impairment (2) — — ( 39,598 ) ( 39,598 ) — — — — Purchase accounting adjustment — — — — — — ( 6,335 ) ( 6,335 ) Foreign currency fluctuation ( 44 ) — — ( 44 ) ( 136 ) — — ( 136 ) Goodwill, ending balance $ 114,703 $ 110,600 $ - $ 225,303 $ 114,747 $ 110,600 $ 39,598 $ 264,945 (1) Beginning balances for both periods include accumulated impairment of $ 4.2 million. (2) Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 16 of 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 3, 2024 January 28, 2023 Intangible assets, beginning balance, at cost $ 94,536 $ 102,701 Additions 826 985 Impairment (1) ( 40,533 ) — Amortization ( 8,720 ) ( 9,150 ) Intangible assets, net (2) $ 46,109 $ 94,536 (1) Impairment included $ 31.2 million of customer relationships and $ 9.3 million of trade names related to Quiet Platforms. Refer to Note 16 of the Consolidated Financial Statements for additional information (2) The ending balance includes accumulated amortization of $ 100.9 million and $ 51.7 million as of February 3, 2024 and January 28, 2023 , respectively. Amortization expense is as follows: Fiscal Years Ending (In thousands) February 3, 2024 January 28, 2023 January 29, 2022 Amortization expense $ 8,748 $ 9,162 $ 6,468 The table below summarizes the estimated future amortization expense for intangible assets existing as of February 3, 2024 for the next five fiscal years: Future (In thousands) Amortization 2024 $ 4,232 2025 $ 4,093 2026 $ 3,970 2027 $ 3,899 2028 $ 3,817 |
Long-Term Debt, Net
Long-Term Debt, Net | 12 Months Ended |
Feb. 03, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | 9. Long-Term Debt, Net The Company’s long-term debt consisted of the following: Fiscal Years Ending February 3, January 28, (In thousands) 2024 2023 2025 Notes principal $ — $ 8,791 Less: unamortized discount — 105 2025 Notes, net $ — $ 8,686 2025 Notes In April 2020, the Company issued $ 415 million aggregate principal amount of 2025 Notes in a private placement to qualified institutional buyers in reliance on Rule 144A under the Securities Act. 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" and "Early Redemption" 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 In June and December 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"). In June 2022, the Company exchanged $ 342.4 million in aggregate principal amount of the 2025 Notes. The Company paid cash of $ 136.1 million to redeem a principal amount of the 2025 Notes with a carrying value of $ 339.2 million and issued approximately 34.7 million shares of the Company's common stock. In connection with these transactions, the Company recognized a pre-tax inducement charge of approximately $ 55.7 million during the 13 weeks ended July 30, 2022, which was recorded within debt-related charges on the Consolidated Statements of Operations. In December 2022, the Company exchanged $ 60.8 million in aggregate principal amount of the 2025 Notes for shares of the Company's common stock, plus payment of accrued and unpaid interest. The Company issued approximately 7.6 million shares of the Company's common stock with a carrying value of $ 60.4 million. In connection with these transactions, the Company recognized a pre-tax inducement charge of approximately $ 4.7 million during the 13 weeks ending January 28, 2023, which was recorded within debt-related charges on the Consolidated Statements of Operations. 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: Fiscal Years Ending February 3, January 28, (In thousands) 2024 2023 Accrued interest for interest payments $ 70 $ 6,894 Amortization of discount 10 915 Total interest expense $ 80 $ 7,809 Revolving Credit Facility 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 . Before amendment and restatement, the Company's previous credit agreement provided senior secured asset-based revolving credit for loans and letters of credit up to $ 400 million and was scheduled to expire on January 30, 2024 . 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 3, 2024 , the Company was in compliance with the terms of the Credit Agreement and had $ 7.7 million outstanding in stand-by letters of credit. No borrowings were outstanding under the Credit Agreement as of both February 3, 2024 and January 28, 2023. Borrowings under the Credit Facility accrue interest at the election of the Company at an adjusted secured overnight financing rate ("SOFR") rate of 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 for Fiscal 2023 was $ 1.1 million. The total interest expense related to the Credit Facility for Fiscal 2022 was $ 5.9 million. |
Leases
Leases | 12 Months Ended |
Feb. 03, 2024 | |
Leases [Abstract] | |
Leases | 10. 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, 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 3, January 28, (In thousands) 2024 2023 Lease costs Operating lease costs $ 335,420 $ 368,483 Variable lease costs 121,061 121,604 Short-term leases and other lease costs 45,411 5,357 Total lease costs $ 501,892 $ 495,444 Other information Cash paid for operating lease liability $ ( 403,355 ) $ ( 397,059 ) New operating lease ROU assets entered into during the period $ 153,236 $ 254,290 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 3, 2024 Weighted-average remaining lease term - operating leases 4.99 years Weighted-average discount rate - operating leases 4.6 % 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 (In thousands) February 3, 2024 Fiscal years: 2024 304,062 2025 284,736 2026 232,307 2027 180,886 2028 146,568 Thereafter 185,682 Total undiscounted cash flows $ 1,334,241 Less: discount on lease liability ( 148,611 ) Total lease liability $ 1,185,630 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Feb. 03, 2024 | |
Equity [Abstract] | |
Other Comprehensive Loss | 11. 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 30, 2021 $ ( 40,748 ) Foreign currency translation loss (1) ( 1,003 ) Gain on long-term intra-entity foreign currency transactions 906 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 ) (1) Foreign currency translation adjustments are not adjusted for income taxes as they relate to a permanent investment in a subsidiary. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Feb. 03, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payments | 12. 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 2023, Fiscal 2022 , and Fiscal 2021 was $ 51.1 million ($ 36.2 million, net of tax), $ 39.0 million ($ 27.3 million, net of tax), and $ 38.2 million ($ 28.8 million, net of tax), respectively. There was $ 20.1 million of share-based payment expense, consisting of both time- and performance-based awards, included in gross profit this year. This is compared to $ 16.8 million of share-based payment expense included in gross profit last year. There was $ 31.0 million of share-based payment expense, consisting of time and performance-based awards, included in selling, general, and administrative expenses for Fiscal 2023. This is compared to $ 22.2 million of share-based payment expense included in selling, general, and administrative expenses for Fiscal 2022. 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 3, 2024 , 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 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 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 directors who are not officers or employees of the Company, which are not to exceed in value of $ 750,000 in any single fiscal year. Through February 3, 2024 , approximately a nominal amount of shares of restricted stock and common stock had been granted under the 2023 Plan to employees and directors. Approximately 11 % of the restricted stock awards are performance-based and are earned if the established performance goals are met. The remaining 89 % of the restricted stock awards are time-based and 12 % vest ratably over three years and 88 % vest over one year . 2020 Stock Award and Incentive Plan (“2020 Plan”) 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, stock appreciation rights (“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 Code Section 162(m), (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 directors who are not officers or employees of the Company, 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 and 97 % vest ratably over three years and 3 % vest over a period of one to two years . 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 2020 Plan. 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 under the 2020 Plan for Fiscal 2023 follows: Fiscal Year Ending February 3, 2024 Weighted- Weighted- Aggregate Options Exercise Price Term Value (In thousands) (In years) (In thousands) Outstanding - January 28, 2023 3,950 $ 17.01 Granted 1,051 $ 13.17 Exercised (1) ( 491 ) $ 12.18 Cancelled ( 297 ) $ 13.99 Outstanding - February 3, 2024 4,213 $ 16.83 4.0 22,038 Vested and expected to vest - February 3, 2024 3,252 $ 16.97 2.7 9,251 Exercisable - February 3, 2024 (2) 1,694 $ 13.71 2.7 11,963 (1) Options exercised during Fiscal 2023 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 3, 2024 . The weighted-average grant date fair value of stock options granted during Fiscal 2023 and Fiscal 2022 was $ 5.31 and $ 5.90 , respectively. The aggregate intrinsic value of options exercised during Fiscal 2023 and Fiscal 2022 was $ 3.6 million, and $ 0.5 million, respectively. Cash received from the exercise of stock options and the actual tax detriment realized from share-based payments was $ 7.6 million and ($ 0.5 ) million, respectively, for Fiscal 2023 . Cash received from the exercise of stock options and the actual tax benefit realized from share-based payments was $ 2.1 million and $ 0.3 million, respectively, for Fiscal 2022. As of February 3, 2024 , there was $ 0.4 million of unrecognized compensation expense related to non-vested stock option awards that is expected to be recognized over a weighted average period of 1.8 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 3, January 28, Black-Scholes Option Valuation Assumptions 2024 2023 Risk-free interest rate (1) 3.4 % 2.5 % Dividend yield 2.8 % 3.8 % Volatility factor (2) 55.7 % 52.2 % Weighted-average expected term (3) 4.5 years 4.5 years (1) Based on the United States 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 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- Fiscal Year Ending Fiscal Year Ending February 3, 2024 February 3, 2024 (Shares in thousands) Shares Weighted-Average Shares Weighted-Average Non-vested - January 28, 2023 2,749 $ 17.00 1,574 $ 20.11 Granted 1,939 13.42 958 15.04 Vested ( 1,585 ) 14.95 ( 421 ) 15.95 Cancelled ( 273 ) 15.64 ( 88 ) 22.90 Non-vested - February 3, 2024 2,830 $ 15.83 2,023 $ 18.45 As of February 3, 2024 , there was $ 25.8 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 1.8 years. There is $ 3.6 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 1.6 years. As of February 3, 2024 , the Company had 12.0 million shares available for all equity grants. During Fiscal 2023 and Fiscal 2022 , we repurchased approximately 0.8 million and 0.6 million shares, respectively, from certain employees at market prices totaling $ 10.7 million and $ 9.8 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. |
Retirement Plan and Employee St
Retirement Plan and Employee Stock Purchase Plan | 12 Months Ended |
Feb. 03, 2024 | |
Retirement Benefits [Abstract] | |
Retirement Plan and Employee Stock Purchase Plan | 13. 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. In addition, full-time employees need to have completed 30 days of service and 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 plan. Employees are 100 % vested in the Company match after two years . Contributions to the profit-sharing plan, as determined by the Board, are discretionary. The Company recognized $ 21.0 million, $ 15.1 million, and $ 14.7 million in expense during Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively, 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 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 investment up to a maximum investment of $ 100 per pay period. These contributions are used to purchase shares of Company stock in the open market. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes On December 22, 2017, the United States government enacted comprehensive tax legislation in the form of the Tax Cuts and Jobs Act (the "Tax Act”). The Tax Act significantly changed United States 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-United States corporate subsidiaries of large United States shareholders. The Company has elected to treat GILTI as a period expense, and the effect of the GILTI inclusion for Fiscal 2023 is not material. The components of income (loss) before income taxes are: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 U.S. $ 208,283 $ 138,023 $ 520,952 Foreign 31,575 40,471 37,970 Total $ 239,858 $ 178,494 $ 558,922 The significant components of the Company’s deferred tax assets and liabilities are as follows: Fiscal Years Ending February 3, January 28, (in thousands) 2024 2023 Deferred tax assets: Operating lease ROU assets $ 305,043 $ 353,277 Employee compensation and benefits 25,576 2,896 Net Operating Loss 25,071 27,604 Capitalized research and development expenses 22,014 4,120 Accruals not currently deductible 10,041 11,442 Deferred compensation 9,737 9,498 Inventories 8,828 7,082 Other long-term assets 8,169 8,201 State tax credits 7,741 7,968 Gift card liability 5,723 4,871 Capital loss 4,673 4,210 Allowance for Doubtful Accounts 3,114 911 Foreign tax credits 955 2,761 Other 690 744 General Business Credits 116 1,586 Disallowed business interest expense — 8,353 Gross deferred tax assets 437,491 455,524 Valuation allowance ( 27,466 ) ( 25,902 ) Total deferred tax assets 410,025 429,622 Deferred tax liabilities: Operating lease liabilities $ ( 253,229 ) $ ( 287,061 ) Property and equipment ( 69,030 ) ( 100,958 ) Prepaid expenses ( 3,572 ) ( 2,988 ) Goodwill ( 1,981 ) ( 1,996 ) Other ( 149 ) ( 136 ) 2025 Notes — — Total deferred tax liabilities $ ( 327,961 ) $ ( 393,139 ) Total deferred tax assets, net $ 82,064 $ 36,483 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, Property and equipment and disallowed business interest expense, partially offset by an increase in employee compensation and benefits and capitalized research and development expenses. As of February 3, 2024 , the Company had deferred tax assets related to federal, state and foreign net operating loss carryovers of $ 10.2 million, $ 5.4 million and $ 9.4 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 $ 2.8 and $ 2.7 have been recorded on the deferred tax assets related to a portion of the state net operating loss carryovers as of February 3, 2024 and January 28, 2023 , respectively. Further, valuation allowances of $ 9.4 million and $ 6.7 million have been recorded on the deferred tax assets related to the cumulative foreign net operating loss carryovers as of February 3, 2024 and January 28, 2023 , respectively. We also provided for valuation allowances of a nominal amount as of February 3, 2024 and $ 1.6 million as of January 28, 2023, related to other foreign deferred tax assets. The Company had foreign tax credit carryovers in the amount of $ 1.0 million and $ 2.8 million as of February 3, 2024 and January 28, 2023 , respectively. 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 3, 2024 and January 28, 2023. The Company had state income tax credit carryforwards of $ 8.0 million (net of federal tax) as of both February 3, 2024 and January 28, 2023 , 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 will begin to expire in Fiscal 2024 . 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 $ 1.5 million have been recorded on the deferred tax assets related to the cumulative state income tax credit carryovers as of both February 3, 2024 and January 28, 2023. The Company had United States federal and state capital loss carryforwards of $ 4.6 million and $ 4.2 million as of February 3, 2024 and January 28, 2023 , respectively. Generally, the capital loss has a carryforward period of five years . The Company has recorded a valuation allowance of $ 4.6 million and $ 4.2 million as of February 3, 2024 and January 28, 2023 , on the deferred tax asset attributable to these capital losses. The Company recorded deferred tax assets of $ 8.2 million as of both February 3, 2024 and January 28, 2023 , for other long-term assets related to the acquisition of Quiet Logistics, Inc. and certain other strategic investments. Management believes it is more likely than not that these other long-term assets will not reduce future years’ tax liabilities. As such, valuation allowances of $ 8.2 million was recorded as of both February 3, 2024 and January 28, 2023 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 3, January 28, January 29, (In thousands) 2024 2023 2022 Current: Federal $ 66,112 $ ( 986 ) $ 107,493 Foreign taxes 27,958 19,701 19,671 State 19,206 3,594 24,979 Total current 113,276 22,309 152,143 Deferred: Federal $ ( 31,602 ) $ 26,758 $ ( 12,637 ) Foreign taxes ( 6,317 ) ( 1,374 ) ( 1,284 ) State ( 5,537 ) 5,665 1,071 Total deferred ( 43,456 ) 31,049 ( 12,850 ) Provision for income taxes $ 69,820 $ 53,358 $ 139,293 As of February 3, 2024 , the undistributed earnings of the Company’s foreign subsidiaries were approximately $ 139.2 million. The Company intends to permanently reinvest a portion of its earnings outside of the United States for the foreseeable future. On the remaining earnings, the Company has no t recognized deferred tax expense because we expect 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 3, January 28, January 29, (In thousands) 2024 2023 2022 Unrecognized tax benefits, beginning of the year $ 2,478 $ 3,259 $ 2,563 Increases in current period tax positions 2,371 681 251 Increases in tax positions of prior periods 10 — 688 Settlements ( 275 ) ( 454 ) — Lapse of statute of limitations ( 75 ) ( 277 ) ( 93 ) Decreases in tax positions of prior periods ( 535 ) ( 731 ) ( 150 ) Unrecognized tax benefits, end of the year balance $ 3,974 $ 2,478 $ 3,259 As of February 3, 2024, the gross amount of unrecognized tax benefits was $ 4.0 million , of which $ 3.6 million would affect the effective income tax rate if recognized. The gross amount of unrecognized tax benefits as of January 28, 2023 was $ 2.5 million, of which $ 2.0 million would affect the effective income tax rate if recognized. Unrecognized tax benefits increased by $ 1.5 million during Fiscal 2023 , and decreased by $ 0.8 million during Fiscal 2022 . Over the next 12 months, the Company believes it is reasonably possible that the unrecognized tax benefits could decrease by as much as $ 1.1 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 $ 0.8 million as of both February 3, 2024 and January 28, 2023. The Company and its subsidiaries file income tax returns in the United States 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 United States, with limited exceptions, generally, the Company and its subsidiaries are no longer subject to income tax audits for tax years before Fiscal 2017 (ended February 3, 2018). 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 3, January 28, January 29, 2024 2023 2022 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax effect 4.4 3.6 4.1 Foreign rate differential 0.2 0.9 0.6 International provisions of Tax Act ( 2.2 ) 0.1 ( 0.5 ) Valuation allowance changes, net 0.5 0.5 0.2 Non-deductible executive compensation 3.8 2.0 1.3 Change in unrecognized tax benefits 0.8 ( 0.1 ) 0.1 Share Based Payments 0.2 ( 0.2 ) ( 0.8 ) Note Exchanges 0.0 1.4 0.0 Non-deductible goodwill impairment 3.5 0.0 0.0 Federal Credits ( 2.1 ) ( 0.4 ) ( 1.0 ) Other ( 1.0 ) 1.1 ( 0.1 ) 29.1 % 29.9 % 24.9 % The Company recorded income tax expense of $ 69.8 million (an effective tax rate of 29.1 %) in Fiscal 2023 , and income tax expense of $ 53.4 million (an effective tax rate of 29.9 %) in Fiscal 2022 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | 15. 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 Chief Operating Decision Maker’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. General 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: Fiscal Years Ending February 3, 2024 January 28, 2023 January 29, 2022 Net Revenue: American Eagle $ 3,361,579 $ 3,262,893 $ 3,555,706 Aerie $ 1,670,000 $ 1,506,798 $ 1,376,269 Total Segment Net Revenue $ 5,031,579 $ 4,769,691 $ 4,931,975 Other $ 489,056 $ 469,371 $ 81,951 Intersegment Elimination $ ( 258,865 ) $ ( 249,229 ) $ ( 3,140 ) Total Net Revenue $ 5,261,770 $ 4,989,833 $ 5,010,785 Operating Income: American Eagle $ 599,796 $ 541,406 $ 795,960 Aerie $ 275,862 $ 167,467 $ 214,000 Total Segment Operating Income $ 875,658 $ 708,873 $ 1,009,960 Other $ ( 36,124 ) $ ( 56,793 ) $ ( 15,996 ) Intersegment Elimination $ - $ - $ - General corporate expenses $ ( 464,172 ) $ ( 382,824 ) $ ( 390,955 ) Impairment, restructuring and other charges (1) $ ( 152,645 ) $ ( 22,209 ) $ ( 11,944 ) Total Operating Income $ 222,717 $ 247,047 $ 591,065 Debt related charges $ - $ 64,721 $ - Interest (income) expense, net $ ( 6,190 ) $ 14,297 $ 34,632 Other (income), net $ ( 10,951 ) $ ( 10,465 ) $ ( 2,489 ) Income before income taxes $ 239,858 $ 178,494 $ 558,922 Capital Expenditures American Eagle $ 61,139 $ 85,033 $ 47,106 Aerie $ 40,746 $ 107,084 $ 80,062 Other $ 32,235 $ 32,717 $ 3,932 General corporate expenditures $ 40,317 $ 35,544 $ 102,747 Total Capital Expenditures $ 174,437 $ 260,378 $ 233,847 Depreciation and amortization American Eagle $ 77,195 $ 66,820 $ 59,641 Aerie $ 61,249 $ 53,921 $ 33,834 Other $ 18,874 $ 16,067 $ 2,023 General corporate depreciation $ 69,548 $ 70,089 $ 71,284 Total Depreciation and amortization $ 226,866 $ 206,897 $ 166,781 (1) Refer to Note 16. to the Consolidated Financial Statements for additional information. We do not allocate assets to the reportable segment level and therefore our CEO does not use segment asset information to make decisions. Total net revenue for the American Eagle and Aerie reportable segments in the table above represents revenue attributable to each brand's merchandise, which comprises approximately 96% of total net revenue. The following tables present summarized geographical information: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Total net revenue: United States $ 4,424,345 $ 4,268,114 $ 4,336,806 Foreign (1) 837,425 721,719 673,979 Total net revenue $ 5,261,770 $ 4,989,833 $ 5,010,785 (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 3, January 28, (In thousands) 2024 2023 Long-lived assets, net: United States $ 1,521,392 $ 2,050,459 Foreign 468,649 177,535 Total long-lived assets, net $ 1,990,041 $ 2,227,994 |
Impairment, Restructuring and O
Impairment, Restructuring and Other Charges | 12 Months Ended |
Feb. 03, 2024 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and Other Charges | 16. 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. As e-commerce penetration and growth has normalized coming out of the COVID-19 pandemic, the supply chain landscape has continued to evolve and financial results were negatively impacted. In Fiscal 2023, as part of our profit improvement initiative, we began to streamline and shift the operations of Quiet Platforms to better align with AEO's long term strategy. As a result of these changes, Quiet Platforms has refined its focus on its core capabilities as a regionalized fulfillment center network. The network has been updated to reflect this refined focus. The impact of the Quiet platforms business changes resulted in $ 119.6 million impairment, restructuring and other charges in Fiscal 2023. Our international business has also experienced changes in market conditions as a result of unbalanced recovery from the COVID-19 pandemic. The Company has made the decision to exit the Japan market fully as of the end of Fiscal 2023. Relative to Hong Kong, the Company has implemented a strategy to right-size our presence in the market given a slower than anticipated recovery. The impact of the change to our international strategy resulted in $ 21.8 million of impairment, restructuring and other charges recorded in Fiscal 2023. Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 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 $ 6,174 Corporate impairment and restructuring charges (4) $ 11,241 $ — $ 2,575 U.S. and Canada store impairment charges (5) $ — $ 10,368 $ 3,195 Total impairment, restructuring and other charges $ 141,695 $ 22,209 $ 11,944 Total Company impairment, restructuring and other charges $ 152,645 $ 22,209 $ 11,944 The following footnotes relate to the impairment, restructuring and other charges in Fiscal 2023: (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. For Fiscal 2021, $ 6.2 million of store impairment related to insufficient prospective cash flows to support the asset value. (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. For Fiscal 2021, impairment of $ 2.6 million of other assets. (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. For Fiscal 2021, $ 3.2 million consisting of $ 2.2 million of store property and equipment and $ 1.0 million of ROU assets related to insufficient cash flows to support the asset value. A rollforward of the restructuring liabilities recognized in the Consolidated Balance Sheet is as follows: February 3, (In thousands) 2024 Accrued liability as of January 28, 2023 $ — Add: Costs incurred, excluding non-cash charges 17,407 Less: Cash payments and adjustments ( 5,993 ) Accrued liability as of February 3, 2024 $ 11,414 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 03, 2024 | |
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 3, 2024 , 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 2025" refers to the 52 week period that will end on January 31, 2026. "Fiscal 2024" refers to the 52-week period that will end on February 1, 2025. “Fiscal 2023” refers to the 53-week period ended on February 3, 2024. “Fiscal 2022” refers to the 52-week period ended January 28, 2023 . "Fiscal 2021" refers to the 52-week period ended January 29, 2022. |
Estimates | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 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 Financial Standards Board 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 plans to adopt ASU 2023-07 effective for its Fiscal year 2024 and for the interim periods beginning in Fiscal 2025. Refer to Note 15 to the Consolidated Financial Statements for additional information regarding Segment Reporting. In December 2023, the Financial Standards Board 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 14 to the Consolidated Financial Statements for additional information regarding Income Taxes. |
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 11 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 4 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 the fiscal year ended February 3, 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 3, 2024 and January 28, 2023, our allowance for credit losses was $ 12.7 million and $ 3.7 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 3, 2024, 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 assumption used in our fair value analysis is forecasted revenue. 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 7 to the Consolidated Financial Statements for additional information regarding property and equipment, and refer to Note 16 to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2023, Fiscal 2022 and Fiscal 2021. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company’s goodwill is primarily related to the acquisitions of Quiet Logistics and AirTerra in Fiscal 2021, 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 3, 2024 . As a result of the annual impairment test, the Company concluded that the goodwill assigned to the Quiet Platforms reporting unit was impaired, resulting in a charge of $ 39.6 M 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 the discount rate. There were no goodwill impairment charges recorded during Fiscal 2022 or Fiscal 2021. 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. During Fiscal 2023, the Company recorded a $ 40.5 M of definite-lived intangible asset impairment charge, related to the definite-lived intangible assets of Quiet Platforms, due to insufficient prospective cash flows to support the carrying value of the assets. No definite-lived intangible asset impairment charges were recorded during Fiscal 2022, or Fiscal 2021. Refer to Note 8 to the Consolidated Financial Statements for additional information regarding goodwill and intangible assets and refer to Note 16 to the Consolidated Financial Statements for additional information regarding impairment charges for Fiscal 2023. |
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 10 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 both shared and unique benefits for loyalty members and credit card holders. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn 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 3, January 28, January 29, (In thousands) 2024 2023 2022 Beginning balance $ 10,369 $ 9,168 $ 8,377 Returns ( 161,833 ) ( 150,987 ) ( 149,988 ) Provisions 162,230 152,188 150,779 Ending balance $ 10,766 $ 10,369 $ 9,168 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 9 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 14 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 3, 2024 the Company had prepaid advertising costs of $ 7.6 million. As of January 28, 2023 , the Company had prepaid advertising expense of $ 6.1 million. All other advertising costs are expensed as incurred. The Company recognized $ 186.9 million, $ 175.2 million, and $ 173.6 million in advertising expense during Fiscal 2023, Fiscal 2022 , and Fiscal 2021, 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 Debt-related charges consist primarily of a $ 60.4 million induced conversion expense on the exchanges of the 2025 Notes, along with certain other costs related to actions we took to strengthen our capital structure during Fiscal 2022 . There were no debt related charges in Fiscal 2023 . Refer to Note 9 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, partially offset by interest expense related to the Company’s 2025 Notes and borrowings under our five-year, syndicated, asset-based revolving credit facilities. |
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 (received) paid during the respective periods: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Cash (received) paid during the periods for: Income taxes $ 31,440 $ ( 22,109 ) $ 182,656 Interest $ 2,494 $ 15,435 $ 8,729 |
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 Chief Operating Decision Maker'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 15 to the Consolidated Financial Statements. |
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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 3, January 28, January 29, (In thousands) 2024 2023 2022 Beginning balance $ 10,369 $ 9,168 $ 8,377 Returns ( 161,833 ) ( 150,987 ) ( 149,988 ) Provisions 162,230 152,188 150,779 Ending balance $ 10,766 $ 10,369 $ 9,168 |
Supplemental Cash Flow Information for Cash Amounts (Received) Paid | The table below shows supplemental cash flow information for cash amounts (received) paid during the respective periods: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Cash (received) paid during the periods for: Income taxes $ 31,440 $ ( 22,109 ) $ 182,656 Interest $ 2,494 $ 15,435 $ 8,729 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Business Combinations [Abstract] | |
Summary of Estimated Final Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | The following table summarizes the final fair values of the Quiet Logistics assets acquired and liabilities assumed at the acquisition date: Current assets: Cash and cash equivalents $ 3,857 Accounts Receivable 23,207 Prepaid expenses 3,210 Total current assets $ 30,274 Property and equipment $ 28,728 Intangible assets 51,500 Goodwill 248,798 Other long-term assets 118,550 Total Assets $ 477,850 Current liabilities $ 29,819 Total long-term liabilities 87,415 Total Liabilities $ 117,234 Total purchase price $ 360,616 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-term Investments (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 3, January 28, (In thousands) 2024 2023 Cash and cash equivalents: Cash $ 162,279 $ 84,960 Interest-bearing deposits $ 191,815 85,249 Total cash and cash equivalents $ 354,094 $ 170,209 Short-term investments: Certificates of deposits $ 100,000 — Total short-term investments $ 100,000 — Total cash and short-term investments $ 454,094 $ 170,209 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on a Recurring Basis | 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 4 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 3, 2024 (In thousands) Carrying Amount Quoted Market Significant Other Significant Cash and cash equivalents Cash $ 162,279 $ 162,279 — — Interest-bearing deposits 191,815 191,815 — — Total cash and cash equivalents $ 354,094 $ 354,094 — — Short-term investments: Certificates of deposits $ 100,000 $ 100,000 — — Total short-term investments $ 100,000 $ 100,000 — — Total cash and short-term investments $ 454,094 $ 454,094 — — |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 3, January 28, January 29, (In thousands) 2024 2023 2022 Numerator: Net income and numerator for basic EPS $ 170,038 $ 125,136 $ 419,629 Add: Interest expense, net of tax, related to the 2025 Notes (1) 58 5,474 — Numerator for diluted EPS $ 170,096 $ 130,610 $ 419,629 Denominator: Denominator for basic EPS - weighted average shares 195,646 181,778 168,156 Add: Dilutive effect of the 2025 Notes (1) 205 21,507 34,003 Add: Dilutive effect of stock options and non-vested restricted stock 1,012 1,941 4,370 Denominator for diluted EPS - adjusted weighted average shares 196,863 205,226 206,529 Anti-dilutive shares (2) 1,289 2,182 202 (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 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 . |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and equipment, net consists of the following: Fiscal Years Ending February 3, January 28, (In thousands) 2024 2023 Land $ 17,910 $ 17,910 Buildings 222,660 222,857 Leasehold improvements 850,519 822,292 Fixtures and equipment 1,335,173 1,635,897 Construction in progress 852 8,105 Property and equipment, at cost $ 2,427,114 $ 2,707,061 Less: Accumulated depreciation ( 1,713,778 ) ( 1,925,547 ) Property and equipment, net $ 713,336 $ 781,514 |
Depreciation Expense | Depreciation expense is as follows: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Depreciation expense $ 230,833 $ 208,014 $ 161,492 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 3, 2024 January 28, 2023 (In thousands) American Eagle Aerie Corporate and Other (3) Total American Eagle Aerie Corporate and Other (3) Total Goodwill, beginning balance (1) $ 114,747 $ 110,600 $ 39,598 $ 264,945 $ 114,883 $ 110,600 $ 45,933 $ 271,416 Impairment (2) — — ( 39,598 ) ( 39,598 ) — — — — Purchase accounting adjustment — — — — — — ( 6,335 ) ( 6,335 ) Foreign currency fluctuation ( 44 ) — — ( 44 ) ( 136 ) — — ( 136 ) Goodwill, ending balance $ 114,703 $ 110,600 $ - $ 225,303 $ 114,747 $ 110,600 $ 39,598 $ 264,945 (1) Beginning balances for both periods include accumulated impairment of $ 4.2 million. (2) Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 16 of 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 3, 2024 January 28, 2023 Intangible assets, beginning balance, at cost $ 94,536 $ 102,701 Additions 826 985 Impairment (1) ( 40,533 ) — Amortization ( 8,720 ) ( 9,150 ) Intangible assets, net (2) $ 46,109 $ 94,536 (1) Impairment included $ 31.2 million of customer relationships and $ 9.3 million of trade names related to Quiet Platforms. Refer to Note 16 of the Consolidated Financial Statements for additional information (2) The ending balance includes accumulated amortization of $ 100.9 million and $ 51.7 million as of February 3, 2024 and January 28, 2023 , respectively. |
Amortization Expense | Amortization expense is as follows: Fiscal Years Ending (In thousands) February 3, 2024 January 28, 2023 January 29, 2022 Amortization expense $ 8,748 $ 9,162 $ 6,468 |
Estimated Future Amortization Expense | The table below summarizes the estimated future amortization expense for intangible assets existing as of February 3, 2024 for the next five fiscal years: Future (In thousands) Amortization 2024 $ 4,232 2025 $ 4,093 2026 $ 3,970 2027 $ 3,899 2028 $ 3,817 |
Long-Term Debt, Net (Tables)
Long-Term Debt, Net (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | The Company’s long-term debt consisted of the following: Fiscal Years Ending February 3, January 28, (In thousands) 2024 2023 2025 Notes principal $ — $ 8,791 Less: unamortized discount — 105 2025 Notes, net $ — $ 8,686 |
Schedule of Interest Expense for Notes | Interest expense for the 2025 Notes was: Fiscal Years Ending February 3, January 28, (In thousands) 2024 2023 Accrued interest for interest payments $ 70 $ 6,894 Amortization of discount 10 915 Total interest expense $ 80 $ 7,809 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 3, January 28, (In thousands) 2024 2023 Lease costs Operating lease costs $ 335,420 $ 368,483 Variable lease costs 121,061 121,604 Short-term leases and other lease costs 45,411 5,357 Total lease costs $ 501,892 $ 495,444 Other information Cash paid for operating lease liability $ ( 403,355 ) $ ( 397,059 ) New operating lease ROU assets entered into during the period $ 153,236 $ 254,290 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 3, 2024 Weighted-average remaining lease term - operating leases 4.99 years Weighted-average discount rate - operating leases 4.6 % |
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 (In thousands) February 3, 2024 Fiscal years: 2024 304,062 2025 284,736 2026 232,307 2027 180,886 2028 146,568 Thereafter 185,682 Total undiscounted cash flows $ 1,334,241 Less: discount on lease liability ( 148,611 ) Total lease liability $ 1,185,630 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 30, 2021 $ ( 40,748 ) Foreign currency translation loss (1) ( 1,003 ) Gain on long-term intra-entity foreign currency transactions 906 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 ) (1) Foreign currency translation adjustments are not adjusted for income taxes as they relate to a permanent investment in a subsidiary. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity under the 2020 Plan for Fiscal 2023 follows: Fiscal Year Ending February 3, 2024 Weighted- Weighted- Aggregate Options Exercise Price Term Value (In thousands) (In years) (In thousands) Outstanding - January 28, 2023 3,950 $ 17.01 Granted 1,051 $ 13.17 Exercised (1) ( 491 ) $ 12.18 Cancelled ( 297 ) $ 13.99 Outstanding - February 3, 2024 4,213 $ 16.83 4.0 22,038 Vested and expected to vest - February 3, 2024 3,252 $ 16.97 2.7 9,251 Exercisable - February 3, 2024 (2) 1,694 $ 13.71 2.7 11,963 (1) Options exercised during Fiscal 2023 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 3, 2024 . |
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 3, January 28, Black-Scholes Option Valuation Assumptions 2024 2023 Risk-free interest rate (1) 3.4 % 2.5 % Dividend yield 2.8 % 3.8 % Volatility factor (2) 55.7 % 52.2 % Weighted-average expected term (3) 4.5 years 4.5 years (1) Based on the United States 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- Fiscal Year Ending Fiscal Year Ending February 3, 2024 February 3, 2024 (Shares in thousands) Shares Weighted-Average Shares Weighted-Average Non-vested - January 28, 2023 2,749 $ 17.00 1,574 $ 20.11 Granted 1,939 13.42 958 15.04 Vested ( 1,585 ) 14.95 ( 421 ) 15.95 Cancelled ( 273 ) 15.64 ( 88 ) 22.90 Non-vested - February 3, 2024 2,830 $ 15.83 2,023 $ 18.45 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 U.S. $ 208,283 $ 138,023 $ 520,952 Foreign 31,575 40,471 37,970 Total $ 239,858 $ 178,494 $ 558,922 |
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 3, January 28, (in thousands) 2024 2023 Deferred tax assets: Operating lease ROU assets $ 305,043 $ 353,277 Employee compensation and benefits 25,576 2,896 Net Operating Loss 25,071 27,604 Capitalized research and development expenses 22,014 4,120 Accruals not currently deductible 10,041 11,442 Deferred compensation 9,737 9,498 Inventories 8,828 7,082 Other long-term assets 8,169 8,201 State tax credits 7,741 7,968 Gift card liability 5,723 4,871 Capital loss 4,673 4,210 Allowance for Doubtful Accounts 3,114 911 Foreign tax credits 955 2,761 Other 690 744 General Business Credits 116 1,586 Disallowed business interest expense — 8,353 Gross deferred tax assets 437,491 455,524 Valuation allowance ( 27,466 ) ( 25,902 ) Total deferred tax assets 410,025 429,622 Deferred tax liabilities: Operating lease liabilities $ ( 253,229 ) $ ( 287,061 ) Property and equipment ( 69,030 ) ( 100,958 ) Prepaid expenses ( 3,572 ) ( 2,988 ) Goodwill ( 1,981 ) ( 1,996 ) Other ( 149 ) ( 136 ) 2025 Notes — — Total deferred tax liabilities $ ( 327,961 ) $ ( 393,139 ) Total deferred tax assets, net $ 82,064 $ 36,483 |
Components of Provision (Benefit) for Income Taxes | Significant components of the provision (benefit) for income taxes are as follows: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Current: Federal $ 66,112 $ ( 986 ) $ 107,493 Foreign taxes 27,958 19,701 19,671 State 19,206 3,594 24,979 Total current 113,276 22,309 152,143 Deferred: Federal $ ( 31,602 ) $ 26,758 $ ( 12,637 ) Foreign taxes ( 6,317 ) ( 1,374 ) ( 1,284 ) State ( 5,537 ) 5,665 1,071 Total deferred ( 43,456 ) 31,049 ( 12,850 ) Provision for income taxes $ 69,820 $ 53,358 $ 139,293 |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Unrecognized tax benefits, beginning of the year $ 2,478 $ 3,259 $ 2,563 Increases in current period tax positions 2,371 681 251 Increases in tax positions of prior periods 10 — 688 Settlements ( 275 ) ( 454 ) — Lapse of statute of limitations ( 75 ) ( 277 ) ( 93 ) Decreases in tax positions of prior periods ( 535 ) ( 731 ) ( 150 ) Unrecognized tax benefits, end of the year balance $ 3,974 $ 2,478 $ 3,259 |
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 3, January 28, January 29, 2024 2023 2022 Federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax effect 4.4 3.6 4.1 Foreign rate differential 0.2 0.9 0.6 International provisions of Tax Act ( 2.2 ) 0.1 ( 0.5 ) Valuation allowance changes, net 0.5 0.5 0.2 Non-deductible executive compensation 3.8 2.0 1.3 Change in unrecognized tax benefits 0.8 ( 0.1 ) 0.1 Share Based Payments 0.2 ( 0.2 ) ( 0.8 ) Note Exchanges 0.0 1.4 0.0 Non-deductible goodwill impairment 3.5 0.0 0.0 Federal Credits ( 2.1 ) ( 0.4 ) ( 1.0 ) Other ( 1.0 ) 1.1 ( 0.1 ) 29.1 % 29.9 % 24.9 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
Summary of Reportable Segment Information | Reportable segment information is presented in the following table: Fiscal Years Ending February 3, 2024 January 28, 2023 January 29, 2022 Net Revenue: American Eagle $ 3,361,579 $ 3,262,893 $ 3,555,706 Aerie $ 1,670,000 $ 1,506,798 $ 1,376,269 Total Segment Net Revenue $ 5,031,579 $ 4,769,691 $ 4,931,975 Other $ 489,056 $ 469,371 $ 81,951 Intersegment Elimination $ ( 258,865 ) $ ( 249,229 ) $ ( 3,140 ) Total Net Revenue $ 5,261,770 $ 4,989,833 $ 5,010,785 Operating Income: American Eagle $ 599,796 $ 541,406 $ 795,960 Aerie $ 275,862 $ 167,467 $ 214,000 Total Segment Operating Income $ 875,658 $ 708,873 $ 1,009,960 Other $ ( 36,124 ) $ ( 56,793 ) $ ( 15,996 ) Intersegment Elimination $ - $ - $ - General corporate expenses $ ( 464,172 ) $ ( 382,824 ) $ ( 390,955 ) Impairment, restructuring and other charges (1) $ ( 152,645 ) $ ( 22,209 ) $ ( 11,944 ) Total Operating Income $ 222,717 $ 247,047 $ 591,065 Debt related charges $ - $ 64,721 $ - Interest (income) expense, net $ ( 6,190 ) $ 14,297 $ 34,632 Other (income), net $ ( 10,951 ) $ ( 10,465 ) $ ( 2,489 ) Income before income taxes $ 239,858 $ 178,494 $ 558,922 Capital Expenditures American Eagle $ 61,139 $ 85,033 $ 47,106 Aerie $ 40,746 $ 107,084 $ 80,062 Other $ 32,235 $ 32,717 $ 3,932 General corporate expenditures $ 40,317 $ 35,544 $ 102,747 Total Capital Expenditures $ 174,437 $ 260,378 $ 233,847 Depreciation and amortization American Eagle $ 77,195 $ 66,820 $ 59,641 Aerie $ 61,249 $ 53,921 $ 33,834 Other $ 18,874 $ 16,067 $ 2,023 General corporate depreciation $ 69,548 $ 70,089 $ 71,284 Total Depreciation and amortization $ 226,866 $ 206,897 $ 166,781 (1) Refer to Note 16. to the Consolidated Financial Statements for additional information. |
Summary of Geographical Information | The following tables present summarized geographical information: Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 Total net revenue: United States $ 4,424,345 $ 4,268,114 $ 4,336,806 Foreign (1) 837,425 721,719 673,979 Total net revenue $ 5,261,770 $ 4,989,833 $ 5,010,785 (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 3, January 28, (In thousands) 2024 2023 Long-lived assets, net: United States $ 1,521,392 $ 2,050,459 Foreign 468,649 177,535 Total long-lived assets, net $ 1,990,041 $ 2,227,994 |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Charges (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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. As e-commerce penetration and growth has normalized coming out of the COVID-19 pandemic, the supply chain landscape has continued to evolve and financial results were negatively impacted. In Fiscal 2023, as part of our profit improvement initiative, we began to streamline and shift the operations of Quiet Platforms to better align with AEO's long term strategy. As a result of these changes, Quiet Platforms has refined its focus on its core capabilities as a regionalized fulfillment center network. The network has been updated to reflect this refined focus. The impact of the Quiet platforms business changes resulted in $ 119.6 million impairment, restructuring and other charges in Fiscal 2023. Our international business has also experienced changes in market conditions as a result of unbalanced recovery from the COVID-19 pandemic. The Company has made the decision to exit the Japan market fully as of the end of Fiscal 2023. Relative to Hong Kong, the Company has implemented a strategy to right-size our presence in the market given a slower than anticipated recovery. The impact of the change to our international strategy resulted in $ 21.8 million of impairment, restructuring and other charges recorded in Fiscal 2023. Fiscal Years Ending February 3, January 28, January 29, (In thousands) 2024 2023 2022 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 $ 6,174 Corporate impairment and restructuring charges (4) $ 11,241 $ — $ 2,575 U.S. and Canada store impairment charges (5) $ — $ 10,368 $ 3,195 Total impairment, restructuring and other charges $ 141,695 $ 22,209 $ 11,944 Total Company impairment, restructuring and other charges $ 152,645 $ 22,209 $ 11,944 The following footnotes relate to the impairment, restructuring and other charges in Fiscal 2023: (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. For Fiscal 2021, $ 6.2 million of store impairment related to insufficient prospective cash flows to support the asset value. (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. For Fiscal 2021, impairment of $ 2.6 million of other assets. (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. For Fiscal 2021, $ 3.2 million consisting of $ 2.2 million of store property and equipment and $ 1.0 million of ROU assets related to insufficient cash flows to support the asset value. |
Rollforward of Restructuring Liabilities Recognized in Consolidated Balance Sheet | A rollforward of the restructuring liabilities recognized in the Consolidated Balance Sheet is as follows: February 3, (In thousands) 2024 Accrued liability as of January 28, 2023 $ — Add: Costs incurred, excluding non-cash charges 17,407 Less: Cash payments and adjustments ( 5,993 ) Accrued liability as of February 3, 2024 $ 11,414 |
Business Operations - Additiona
Business Operations - Additional Information (Detail) | Feb. 03, 2024 Country Store |
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 | 80 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, shares in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Jul. 28, 2022 $ / shares shares | Jun. 03, 2022 USD ($) shares | Apr. 30, 2020 USD ($) | Jan. 31, 2019 USD ($) | Feb. 03, 2024 USD ($) Segment shares | Jan. 28, 2023 USD ($) shares | Jan. 29, 2022 USD ($) shares | Oct. 28, 2023 | Jun. 30, 2022 USD ($) | |||
Significant Accounting Policies [Line Items] | |||||||||||
Maximum ownership percentage in consolidated entities and subsidiaries | 100% | ||||||||||
Number of reportable segments | Segment | 2 | ||||||||||
Allowance for credit losses | $ 12,700,000 | $ 3,700,000 | |||||||||
Impairment, restructuring and other charges | 141,695,000 | 22,209,000 | $ 11,944,000 | ||||||||
Increase in net income, net of tax | $ 170,038,000 | $ 125,136,000 | $ 419,629,000 | ||||||||
Add: Dilutive effect of the 2025 Notes | shares | [1] | 205 | 21,507 | 34,003 | |||||||
Weighted average remaining useful life, assets | 6 years | ||||||||||
Goodwill impairment charge | $ 39,598,000 | [2] | $ 0 | $ 0 | |||||||
Definite-lived impairment charges | 40,533,000 | [3] | $ 0 | $ 0 | |||||||
Payments for accelerated share repurchase | $ 20,261,000 | ||||||||||
Cumulative treasury stock, shares | shares | 52,630 | 54,502 | 80,867 | ||||||||
Debt related charges | $ 64,721,000 | ||||||||||
Credit Card Reward Program Description | The Program features both shared and unique benefits for loyalty members and credit card holders. Under the Program, members accumulate points based on purchase activity and earn rewards by reaching certain point thresholds. Members earn 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 | $ 7,600,000 | 6,100,000 | |||||||||
Advertising expense | 186,900,000 | 175,200,000 | $ 173,600,000 | ||||||||
ASR Agreement | JPM | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Payments for accelerated share repurchase | $ 200,000,000 | ||||||||||
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 | $ 400,000,000 | $ 700,000,000 | $ 700,000,000 | ||||||||
Line of credit facility, expiration date | Jan. 30, 2024 | Jun. 24, 2027 | |||||||||
Quiet Platforms | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Impairment, restructuring and other charges | [4] | $ 119,572,000 | 3,844,000 | ||||||||
Goodwill impairment charge | 39,600,000 | ||||||||||
Definite-lived impairment charges | 40,500,000 | ||||||||||
2025 Notes | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Aggregate principal amount of debt issued | $ 415,000,000 | ||||||||||
Debt instrument, maturity year | 2025 | ||||||||||
Debt related charges | $ 0 | $ 60,400,000 | |||||||||
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 | ||||||||||
[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 to the Consolidated Financial Statements for additional information regarding the impact of the adoption of ASU 2020-06. Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 16 of the Consolidated Financial Statements for additional information. Impairment included $ 31.2 million of customer relationships and $ 9.3 million of trade names related to Quiet Platforms. Refer to Note 16 of the Consolidated Financial Statements for additional information $ 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. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Useful Lives of Major Classes of Assets (Detail) | Feb. 03, 2024 |
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 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Useful Lives of Major Classes of Assets (Parenthetical) (Detail) | Feb. 03, 2024 |
Maximum | Leasehold Improvements | |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | |
Useful lives in asset class | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Sales Return Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Accounting Policies [Abstract] | |||
Beginning balance | $ 10,369 | $ 9,168 | $ 8,377 |
Returns | (161,833) | (150,987) | (149,988) |
Provisions | 162,230 | 152,188 | 150,779 |
Ending balance | $ 10,766 | $ 10,369 | $ 9,168 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Supplemental Cash Flow Information for Cash Amounts (Received) Paid (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Cash (received) paid during the periods for: | |||
Income taxes | $ 31,440 | $ (22,109) | $ 182,656 |
Interest | $ 2,494 | $ 15,435 | $ 8,729 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||||
Dec. 29, 2021 | May 03, 2021 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 225,303,000 | $ 264,945,000 | [1] | $ 271,416,000 | [1] | |||
Impairment | 40,533,000 | [2] | 0 | 0 | ||||
Goodwill impairment charge | 39,598,000 | [3] | 0 | $ 0 | ||||
Quiet Logistics | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Dec. 29, 2021 | |||||||
Aggregate purchase price in cash | $ 360,600,000 | |||||||
Acquired intangible assets | $ 51,500,000 | 51,500,000 | ||||||
Weighted average cost of capital | 14.50% | |||||||
Goodwill | $ 248,800,000 | 248,798,000 | ||||||
Increase decrease in deferred tax asset | $ 6,300,000 | |||||||
Goodwill deductible for income tax purposes | $ 0 | |||||||
Quiet Logistics | American Eagle | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 101,600,000 | |||||||
Quiet Logistics | Aerie | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 110,600,000 | |||||||
Quiet Logistics | Supply Chain Platform | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 36,600,000 | |||||||
Quiet Logistics | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired intangible assets | $ 39,000,000 | |||||||
Definite-lived intangibles, useful life | 10 years | |||||||
Quiet Logistics | Trade Names | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired intangible assets | $ 12,500,000 | |||||||
Definite-lived intangibles, useful life | 15 years | |||||||
AirTerra | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | May 03, 2021 | |||||||
Aggregate purchase price paid | $ 3,000,000 | |||||||
[1] Beginning balances for both periods include accumulated impairment of $ 4.2 million. Impairment included $ 31.2 million of customer relationships and $ 9.3 million of trade names related to Quiet Platforms. Refer to Note 16 of the Consolidated Financial Statements for additional information Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 16 of the Consolidated Financial Statements for additional information. |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Final Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date (Detail) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 | [1] | Jan. 29, 2022 | [1] | Dec. 29, 2021 |
Current assets | ||||||
Goodwill | $ 225,303 | $ 264,945 | $ 271,416 | |||
Quiet Logistics | ||||||
Current assets | ||||||
Cash and cash equivalents | 3,857 | |||||
Accounts Receivable | 23,207 | |||||
Prepaid expenses | 3,210 | |||||
Total current assets | 30,274 | |||||
Property and equipment | 28,728 | |||||
Intangible assets | 51,500 | $ 51,500 | ||||
Goodwill | 248,798 | $ 248,800 | ||||
Other long term assets | 118,550 | |||||
Total Assets | 477,850 | |||||
Current liabilities | 29,819 | |||||
Total long-term liabilities | 87,415 | |||||
Total Liabilities | 117,234 | |||||
Total purchase price | $ 360,616 | |||||
[1] Beginning balances for both periods include accumulated impairment of $ 4.2 million. |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-term Investments - Fair Market Value of Cash, Cash Equivalents, and Short-term Investments (Detail) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Cash and cash equivalents: | ||
Cash and cash equivalents | $ 354,094 | $ 170,209 |
Short-term investments: | ||
Short-term investments | 100,000 | |
Total cash and short-term investments | 454,094 | 170,209 |
Cash | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 162,279 | 84,960 |
Interest Bearing Deposits | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 191,815 | $ 85,249 |
Certificates of Deposit | ||
Short-term investments: | ||
Short-term investments | $ 100,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Fair Value Measurements Disclosure [Line Items] | |||||
Financial instruments required at fair value measurements | $ 0 | ||||
Impairment charges | 116,365,000 | $ 20,633,000 | $ 11,944,000 | ||
Definite-lived impairment charges | $ 40,533,000 | [1] | $ 0 | $ 0 | |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring Costs and Asset Impairment Charges | Restructuring Costs and Asset Impairment Charges | Restructuring Costs and Asset Impairment 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 property and equipment | $ 3,600,000 | ||||
Impairment of operating lease ROU assets | 4,700,000 | ||||
Hong Kong | |||||
Fair Value Measurements Disclosure [Line Items] | |||||
Impairment of property and equipment | 1,300,000 | ||||
Quiet Platforms | |||||
Fair Value Measurements Disclosure [Line Items] | |||||
Impairment charges | 74,800,000 | $ 2,800,000 | |||
Definite-lived impairment charges | 40,500,000 | ||||
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. Refer to Note 16 of the Consolidated Financial Statements for additional information |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on a Recurring Basis (Details) (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 354,094 | $ 170,209 |
Fair Value Measurements, Recurring | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 354,094 | |
Short-term investments | 100,000 | |
Total cash and short-term investments | 454,094 | |
Fair Value Measurements, Recurring | Cash | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 162,279 | |
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 | 191,815 | |
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 | 100,000 | |
Fair Value Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 354,094 | |
Short-term investments | 100,000 | |
Total cash and short-term investments | 454,094 | |
Fair Value Measurements, Recurring | Level 1 | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 162,279 | |
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 | 191,815 | |
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 | $ 100,000 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Numerator | ||||
Net Income (Loss) | $ 170,038 | $ 125,136 | $ 419,629 | |
Add: Interest expense, net of tax, related to the 2025 Notes | [1] | 58 | 5,474 | |
Numerator for diluted EPS | $ 170,096 | $ 130,610 | $ 419,629 | |
Denominator: | ||||
Denominator for basic EPS - weighted average shares | 195,646 | 181,778 | 168,156 | |
Add: Dilutive effect of the 2025 Notes | [1] | 205 | 21,507 | 34,003 |
Add: Dilutive effect of stock options and non-vested restricted stock | 1,012 | 1,941 | 4,370 | |
Denominator for diluted EPS - adjusted weighted average shares | 196,863 | 205,226 | 206,529 | |
Anti-dilutive shares | [2] | 1,289 | 2,182 | 202 |
[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 to the Consolidated Financial Statements for additional information regarding the impact of the adoption of ASU 2020-06. For all periods presented, anti-dilutive shares relate to stock options and unvested restricted stock |
Accounts Receivable, net - Acco
Accounts Receivable, net - Accounts receivable, net (Detail) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Receivables [Abstract] | ||
Total | $ 247,934 | $ 242,386 |
Property and Equipment, net - P
Property and Equipment, net - Property and Equipment, net (Detail) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 17,910 | $ 17,910 |
Buildings | 222,660 | 222,857 |
Leasehold improvements | 850,519 | 822,292 |
Fixtures and equipment | 1,335,173 | 1,635,897 |
Construction in progress | 852 | 8,105 |
Property and equipment, at cost | 2,427,114 | 2,707,061 |
Less: Accumulated depreciation | (1,713,778) | (1,925,547) |
Property and equipment, net | $ 713,336 | $ 781,514 |
Property and Equipment, net - D
Property and Equipment, net - Depreciation Expense (Detail) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 230,833 | $ 208,014 | $ 161,492 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Asset write-offs | $ 3.6 | $ 4.4 | $ 4.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net - Summary of Goodwill and Definite-lived Intangible Assets, Net (Detail) - USD ($) | 12 Months Ended | |||||||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 29, 2023 | |||||
Goodwill [Line Items] | ||||||||
Goodwill, beginning balance | [1] | $ 264,945,000 | $ 271,416,000 | |||||
Impairment | (39,598,000) | [2] | 0 | $ 0 | ||||
Purchase accounting adjustment | (6,335,000) | |||||||
Foreign currency fluctuation | (44,000) | (136,000) | ||||||
Goodwill, ending balance | 225,303,000 | 264,945,000 | [1] | 271,416,000 | [1] | |||
Intangible assets, beginning balance, at cost | 94,536,000 | [3] | 102,701,000 | |||||
Additions | 826,000 | 985,000 | ||||||
Impairment | (40,533,000) | [4] | 0 | 0 | ||||
Amortization | (8,720,000) | (9,150,000) | ||||||
Intangible assets, net | 46,109,000 | [3] | 94,536,000 | [3] | 102,701,000 | $ 94,536,000 | ||
Operating Segments | American Eagle | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill, beginning balance | [1] | 114,747,000 | 114,883,000 | |||||
Foreign currency fluctuation | (44,000) | (136,000) | ||||||
Goodwill, ending balance | 114,703,000 | 114,747,000 | [1] | 114,883,000 | [1] | |||
Operating Segments | Aerie | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill, beginning balance | [1] | 110,600,000 | 110,600,000 | |||||
Goodwill, ending balance | 110,600,000 | 110,600,000 | [1] | 110,600,000 | [1] | |||
Corporate and Other, Non-Segment | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill, beginning balance | [1],[5] | 39,598,000 | 45,933,000 | |||||
Impairment | [2],[5] | $ (39,598,000) | ||||||
Purchase accounting adjustment | [5] | (6,335,000) | ||||||
Goodwill, ending balance | [1],[5] | $ 39,598,000 | $ 45,933,000 | |||||
[1] Beginning balances for both periods include accumulated impairment of $ 4.2 million. Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 16 of the Consolidated Financial Statements for additional information. The ending balance includes accumulated amortization of $ 100.9 million and $ 51.7 million as of February 3, 2024 and January 28, 2023 , respectively. Impairment included $ 31.2 million of customer relationships and $ 9.3 million of trade names related to Quiet Platforms. Refer to Note 16 of the Consolidated Financial Statements for additional information 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. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net - Summary of Goodwill and Definite-lived Intangible Assets, Net, (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Accumulated impairment | $ 4,200,000 | $ 4,200,000 | ||
Impairment | 40,533,000 | [1] | 0 | $ 0 |
Accumulated amortization | 100,900,000 | $ 51,700,000 | ||
Quiet Platforms | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment | 40,500,000 | |||
Customer Relationships | Quiet Platforms | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment | 31,200,000 | |||
Trade Names | Quiet Platforms | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment | $ 9,300,000 | |||
[1] Impairment included $ 31.2 million of customer relationships and $ 9.3 million of trade names related to Quiet Platforms. Refer to Note 16 of the Consolidated Financial Statements for additional information |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, net - Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 8,748 | $ 9,162 | $ 6,468 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, net - Estimated Future Amortization Expense (Detail) $ in Thousands | Feb. 03, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 4,232 |
2025 | 4,093 |
2026 | 3,970 |
2027 | 3,899 |
2028 | $ 3,817 |
Long-Term Debt, Net - Component
Long-Term Debt, Net - Components of Long-Term Debt (Detail) - 2025 Notes $ in Thousands | Jan. 28, 2023 USD ($) |
Debt Instrument [Line Items] | |
2025 Notes principal | $ 8,791 |
Less: unamortized discount | 105 |
2025 Notes, net | $ 8,686 |
Long-Term Debt, Net - Additiona
Long-Term Debt, Net - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) shares | Jun. 30, 2022 USD ($) shares | Apr. 30, 2020 USD ($) TradingDay | Jan. 31, 2019 USD ($) | Jan. 28, 2023 USD ($) | Jul. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Feb. 03, 2024 USD ($) shares | Jan. 28, 2023 USD ($) shares | |
Credit Facilities | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Credit facility interest rate | 0.10 | ||||||||
Weighted average interest rate for borrowings | 6% | ||||||||
Interest expense | $ 1,100,000 | $ 5,900,000 | |||||||
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 | $ 400,000,000 | $ 700,000,000 | ||||||
Line of credit facility, expiration date | Jan. 30, 2024 | Jun. 24, 2027 | |||||||
Credit Agreement | Stand-by Letters of Credit | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Letters of credit outstanding amount | $ 7,700,000 | ||||||||
Credit Agreement | Credit Agreement Loans | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Outstanding borrowings | $ 0 | $ 0 | $ 0 | ||||||
Common Stock | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Exchange of Convertible Senior Notes (in shares) | shares | 1,099,000 | 42,329,000 | |||||||
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 | $ 60,800,000 | 342,400,000 | $ 403,200,000 | ||||||
Cash paid to noteholders | 136,100,000 | ||||||||
Carrying value of notes | $ 60,400,000 | $ 339,200,000 | $ 60,400,000 | ||||||
Pre-tax inducement charge | $ 4,700,000 | $ 55,700,000 | |||||||
Debt instrument, redemption, scheduled trading day immediately preceding maturity date | TradingDay | 40 | ||||||||
Debt instrument, redemption percentage of common stock price to conversion price | 130% | ||||||||
Debt instrument, redemption, effect for trading days | TradingDay | 20 | ||||||||
Debt instrument, redemption, consecutive trading day period | TradingDay | 30 | ||||||||
2025 Notes | Common Stock | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Exchange of Convertible Senior Notes (in shares) | shares | 7,600,000 | 34,700,000 |
Long-Term Debt, Net - Schedule
Long-Term Debt, Net - Schedule of Interest Expense for Notes (Detail) - 2025 Notes - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Debt Instrument [Line Items] | ||
Accrued interest for interest payments | $ 70 | $ 6,894 |
Amortization of discount | 10 | 915 |
Total interest expense | $ 80 | $ 7,809 |
Leases - Summary of Expense Cat
Leases - Summary of Expense Categories and Cash Payments for Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Lease costs | ||
Operating lease costs | $ 335,420 | $ 368,483 |
Variable lease costs | 121,061 | 121,604 |
Short-term leases and other lease costs | 45,411 | 5,357 |
Total lease costs | 501,892 | 495,444 |
Other information | ||
Cash paid for operating lease liability | (403,355) | (397,059) |
New operating lease ROU assets entered into during the period | $ 153,236 | $ 254,290 |
Leases - Summary of Average Rem
Leases - Summary of Average Remaining Lease Term and Discount Rate (Detail) | Feb. 03, 2024 |
Lease term and discount rate | |
Weighted-average remaining lease term - operating leases | 4 years 11 months 26 days |
Weighted-average discount rate - operating leases | 4.60% |
Leases - Summary of Maturity An
Leases - Summary of Maturity Analysis of Operating Leases (Detail) $ in Thousands | Feb. 03, 2024 USD ($) |
Leases [Abstract] | |
2024 | $ 304,062 |
2025 | 284,736 |
2026 | 232,307 |
2027 | 180,886 |
2028 | 146,568 |
Thereafter | 185,682 |
Total undiscounted cash flows | 1,334,241 |
Less: discount on lease liability | (148,611) |
Total lease liability | $ 1,185,630 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Accumulated Balances of Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning Balance | $ (32,630) | $ (40,845) | $ (40,748) | |
Foreign currency translation gain (loss) | [1] | 17,911 | 9,749 | (1,003) |
Gain (loss) on long-term intra-entity foreign currency transactions | (1,691) | (1,534) | 906 | |
Ending Balance | $ (16,410) | $ (32,630) | $ (40,845) | |
[1] Foreign currency translation adjustments are not adjusted for income taxes as they relate to a permanent investment in a subsidiary. |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) | 12 Months Ended | ||||
Jun. 07, 2023 USD ($) shares | Apr. 13, 2020 USD ($) shares | Feb. 03, 2024 USD ($) CompensationPlan $ / shares shares | Jan. 28, 2023 USD ($) $ / shares shares | Jan. 29, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 51,067,000 | $ 38,986,000 | $ 38,153,000 | ||
Share-based compensation, net of tax | $ 36,200,000 | 27,300,000 | 28,800,000 | ||
Number of share-based compensation plans | CompensationPlan | 2 | ||||
Stock awards | $ 50,445,000 | $ 38,148,000 | 37,887,000 | ||
Weighted-average grant date fair value of stock options granted | $ / shares | $ 5.31 | $ 5.9 | |||
Aggregate intrinsic value of options exercised | $ 3,600,000 | $ 500,000 | |||
Net proceeds from stock options exercised | 7,646,000 | 2,089,000 | $ 13,065,000 | ||
Tax benefit (detriment) realized from stock option exercises | (500,000) | 300,000 | |||
Stock repurchased during period, value | $ 10,700,000 | $ 9,800,000 | |||
Stock repurchased during period, shares | shares | 800,000 | 600,000 | |||
Shares available for all equity grants | shares | 12,000,000 | ||||
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 | ||||
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 | 7,200,000 | ||||
Performance-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | shares | 958,000 | ||||
Vesting period | 3 years | ||||
Unrecognized compensation expense, weighted average period | 1 year 7 months 6 days | ||||
Unrecognized compensation expense, restricted stock grants | $ 3,600,000 | ||||
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 | 11% | ||||
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% | ||||
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 | 89% | ||||
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% | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 400,000 | ||||
Unrecognized compensation expense, weighted average period | 1 year 9 months 18 days | ||||
Time Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | shares | 1,939,000 | ||||
Vesting period | 3 years | ||||
Unrecognized compensation expense, weighted average period | 1 year 9 months 18 days | ||||
Unrecognized compensation expense, restricted stock grants | $ 25,800,000 | ||||
Time and performance-based awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | 20,100,000 | $ 16,800,000 | |||
Time and performance-based awards | Selling general and administrative expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 31,000,000 | $ 22,200,000 | |||
Vest Ratably | 2023 Stock Award and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vested | 12% | ||||
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% | ||||
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 | 88% | ||||
Vesting period | 1 year | ||||
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% | ||||
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 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Feb. 03, 2024 USD ($) $ / shares shares | ||
Options | ||
Outstanding - beginning of period | shares | 3,950 | |
Granted | shares | 1,051 | |
Exercised | shares | (491) | [1] |
Cancelled | shares | (297) | |
Outstanding - end of period | shares | 4,213 | |
Vested and expected to vest - end of period | shares | 3,252 | |
Exercisable - end of period | shares | 1,694 | [2] |
Weighted-Average Exercise Price | ||
Outstanding - beginning of period | $ / shares | $ 17.01 | |
Granted | $ / shares | 13.17 | |
Exercised | $ / shares | 12.18 | [1] |
Cancelled | $ / shares | 13.99 | |
Outstanding - end of period | $ / shares | 16.83 | |
Vested and expected to vest - end of period | $ / shares | 16.97 | |
Exercisable - end of period | $ / shares | $ 13.71 | [2] |
Weighted-Average Remaining Contractual Term (In years) | ||
Outstanding - end of period | 4 years | |
Vested and expected to vest - end of period | 2 years 8 months 12 days | |
Exercisable - end of period | 2 years 8 months 12 days | [2] |
Aggregate Intrinsic Value | ||
Outstanding - end of period | $ | $ 22,038 | |
Vested and expected to vest - end of period | $ | 9,251 | |
Exercisable - end of period | $ | $ 11,963 | [2] |
[1] Options exercised during Fiscal 2023 ranged in price from $ 8.62 to $ 17.24 . 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 3, 2024 . |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Stock Option Activity (Parenthetical) (Detail) | 12 Months Ended |
Feb. 03, 2024 $ / shares | |
Share-Based Payment Arrangement [Abstract] | |
Options exercised, exercise price range, lower limit | $ 8.62 |
Options exercised, exercise price range, upper limit | $ 17.24 |
Share-Based Payments - Black-Sc
Share-Based Payments - Black-Scholes Option Valuation Assumptions (Detail) | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | [1] | 3.40% | 2.50% |
Dividend yield | 2.80% | 3.80% | |
Volatility factors of the expected market price of the Company's common stock | [2] | 55.70% | 52.20% |
Weighted-average expected term | [3] | 4 years 6 months | 4 years 6 months |
[1] Based on the United States Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. Based on the historical volatility of the Company’s common stock. Represents the period that options are expected to be outstanding. The weighted average expected option terms were determined based on historical experience. |
Share-Based Payments - Summar_3
Share-Based Payments - Summary of Restricted Stock Activity (Detail) shares in Thousands | 12 Months Ended |
Feb. 03, 2024 $ / shares shares | |
Time Based Restricted Stock Units | |
Shares | |
Nonvested - beginning of period | shares | 2,749 |
Granted | shares | 1,939 |
Vested | shares | (1,585) |
Cancelled | shares | (273) |
Nonvested - end of period | shares | 2,830 |
Weighted-Average Grant Date Fair Value | |
Nonvested - beginning of period | $ / shares | $ 17 |
Granted | $ / shares | 13.42 |
Vested | $ / shares | 14.95 |
Cancelled | $ / shares | 15.64 |
Nonvested - end of period | $ / shares | $ 15.83 |
Performance-Based Restricted Stock Units | |
Shares | |
Nonvested - beginning of period | shares | 1,574 |
Granted | shares | 958 |
Vested | shares | (421) |
Cancelled | shares | (88) |
Nonvested - end of period | shares | 2,023 |
Weighted-Average Grant Date Fair Value | |
Nonvested - beginning of period | $ / shares | $ 20.11 |
Granted | $ / shares | 15.04 |
Vested | $ / shares | 15.95 |
Cancelled | $ / shares | 22.9 |
Nonvested - end of period | $ / shares | $ 18.45 |
Retirement Plan and Employee _2
Retirement Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jan. 01, 2023 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee contribution percentage | 3% | |||
Years of age attained | 20 years | |||
Vesting percentage in matching contribution to defined contribution plan | 100% | |||
Vesting period in matching contribution to defined contribution plan | 2 years | |||
Compensation expense | $ 21,000,000 | $ 15,100,000 | $ 14,700,000 | |
First 3 Percent of Each Participant's Contributions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Matching contribution to defined contribution plan | 100% | |||
Next 3 Percent of Each Participant's Contributions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Matching contribution to defined contribution plan | 25% | |||
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% | |||
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% | |||
Matching investment per pay period | $ 5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 29, 2023 | Jan. 30, 2021 | |
Income Taxes [Line Items] | |||||
U.S. federal corporate tax rate | 21% | 21% | 21% | ||
Net operating loss | $ 25,071,000 | $ 27,604,000 | |||
Valuation allowances | 27,466,000 | 25,902,000 | |||
Foreign tax credit carryovers | $ 1,000,000 | 2,800,000 | |||
Foreign tax credit carryovers expiration date | 2028 | ||||
Deferred tax asset related to State income tax credit carryforwards, net of federal tax | $ 8,000,000 | 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 | $ 1,500,000 | 1,500,000 | |||
Federal and state capital loss carryforwards | 4,600,000 | ||||
Deferred tax assets, capital losses | $ 4,673,000 | 4,210,000 | |||
Capital loss, carryforward period | 5 years | ||||
Valuation allowance on deferred tax asset to capital losses | $ 4,600,000 | 4,200,000 | |||
Deferred tax assets, Other long term assets | 8,169,000 | 8,201,000 | |||
Valuation allowances on deferred tax assets to other long term assets | 8,200,000 | 8,200,000 | |||
Undistributed foreign earnings | 139,200,000 | ||||
Deferred income taxes | $ (43,456,000) | 31,049,000 | $ (12,850,000) | ||
Percent of dividends received as deduction for tax act | 100% | ||||
Unrecognized tax benefits | $ 3,974,000 | 2,478,000 | 3,259,000 | $ 2,478,000 | $ 2,563,000 |
Unrecognized tax benefits that would affect effective income tax rate if recognized | 3,600,000 | 2,000,000 | |||
Increase (decrease) in unrecognized tax benefits | 1,500,000 | (800,000) | |||
Reasonably possible amount of reduction in unrecognized tax benefit over the next twelve months | 1,100,000 | ||||
Accrued interest and penalties related to unrecognized tax benefits | 800,000 | 800,000 | |||
Income tax expense (benefit) | $ 69,820,000 | $ 53,358,000 | $ 139,293,000 | ||
Effective income tax benefit rate | 29.10% | 29.90% | 24.90% | ||
Retained Earnings | |||||
Income Taxes [Line Items] | |||||
Deferred income taxes | $ 0 | ||||
Federal | |||||
Income Taxes [Line Items] | |||||
Net operating loss | 10,200,000 | ||||
State | |||||
Income Taxes [Line Items] | |||||
Net operating loss | 5,400,000 | ||||
Foreign | |||||
Income Taxes [Line Items] | |||||
Net operating loss | 9,400,000 | ||||
Deferred Tax Asset Operating Loss Carryforwards State | |||||
Income Taxes [Line Items] | |||||
Valuation allowances | 2,800,000 | $ 2,700,000 | |||
Deferred Tax Asset Operating Loss Carryforwards Foreign | |||||
Income Taxes [Line Items] | |||||
Valuation allowances | 9,400,000 | 6,700,000 | |||
Deferred Tax Asset Other Foreign | |||||
Income Taxes [Line Items] | |||||
Valuation allowances | 1,600,000 | ||||
Deferred Tax Asset Tax Credit Carryforwards Foreign | |||||
Income Taxes [Line Items] | |||||
Valuation allowances | $ 1,000,000 | $ 1,000,000 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 208,283 | $ 138,023 | $ 520,952 |
Foreign | 31,575 | 40,471 | 37,970 |
Income before income taxes | $ 239,858 | $ 178,494 | $ 558,922 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Deferred tax assets: | ||
Operating lease ROU assets | $ 305,043 | $ 353,277 |
Employee compensation and benefits | 25,576 | 2,896 |
Net Operating Loss | 25,071 | 27,604 |
Capitalized research and development expenses | 22,014 | 4,120 |
Accruals not currently deductible | 10,041 | 11,442 |
Deferred compensation | 9,737 | 9,498 |
Inventories | 8,828 | 7,082 |
Other long-term assets | 8,169 | 8,201 |
State tax credits | 7,741 | 7,968 |
Gift card liability | 5,723 | 4,871 |
Capital loss | 4,673 | 4,210 |
Allowance for Doubtful Accounts | 3,114 | 911 |
Foreign tax credits | 955 | 2,761 |
Other | 690 | 744 |
General Business Credits | 116 | 1,586 |
Disallowed business interest expense | 0 | 8,353 |
Gross deferred tax assets | 437,491 | 455,524 |
Valuation allowance | (27,466) | (25,902) |
Total deferred tax assets | 410,025 | 429,622 |
Deferred tax liabilities: | ||
Operating lease liabilities | (253,229) | (287,061) |
Property and equipment | (69,030) | (100,958) |
Prepaid expenses | (3,572) | (2,988) |
Goodwill | (1,981) | (1,996) |
Other | (149) | (136) |
Total deferred tax liabilities | (327,961) | (393,139) |
Total deferred tax assets, net | $ 82,064 | $ 36,483 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Current: | |||
Federal | $ 66,112 | $ (986) | $ 107,493 |
Foreign taxes | 27,958 | 19,701 | 19,671 |
State | 19,206 | 3,594 | 24,979 |
Total current | 113,276 | 22,309 | 152,143 |
Deferred: | |||
Federal | (31,602) | 26,758 | (12,637) |
Foreign taxes | (6,317) | (1,374) | (1,284) |
State | (5,537) | 5,665 | 1,071 |
Total deferred | (43,456) | 31,049 | (12,850) |
Provision for income taxes | $ 69,820 | $ 53,358 | $ 139,293 |
Income Taxes - Activity Related
Income Taxes - Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning of the year balance | $ 2,478 | $ 3,259 | $ 2,563 |
Increases in current period tax positions | 2,371 | 681 | 251 |
Increases in tax positions of prior periods | 10 | 688 | |
Settlements | (275) | (454) | |
Lapse of statute of limitations | (75) | (277) | (93) |
Decreases in tax positions of prior periods | (535) | (731) | (150) |
Unrecognized tax benefits, end of the year balance | $ 3,974 | $ 2,478 | $ 3,259 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21% | 21% | 21% |
State income taxes, net of federal income tax effect | 4.40% | 3.60% | 4.10% |
Foreign rate differential | 0.20% | 0.90% | 0.60% |
International provisions of Tax Act | (2.20%) | 0.10% | (0.50%) |
Valuation allowance changes, net | 0.50% | 0.50% | 0.20% |
Non-deductible executive compensation | 3.80% | 2% | 1.30% |
Change in unrecognized tax benefits | 0.80% | (0.10%) | 0.10% |
Share Based Payments | 0.20% | (0.20%) | (0.80%) |
Note Exchanges | 0% | 1.40% | 0% |
Non-deductible goodwill impairment | 3.50% | 0% | 0% |
Federal Credits | (2.10%) | (0.40%) | (1.00%) |
Other | (1.00%) | 1.10% | (0.10%) |
Effective Income Tax Rate Reconciliation, Percent, Total | 29.10% | 29.90% | 24.90% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Feb. 03, 2024 Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment Reporting - Summary of
Segment Reporting - Summary of Reportable Segment Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Segment Reporting Information [Line Items] | ||||
Total net revenue | $ 5,261,770 | $ 4,989,833 | $ 5,010,785 | |
Impairment, restructuring and other charges | [1] | (152,645) | (22,209) | (11,944) |
Operating income | 222,717 | 247,047 | 591,065 | |
Debt related charges | 64,721 | |||
Interest (income) expense, net | (6,190) | 14,297 | 34,632 | |
Other (income), net | (10,951) | (10,465) | (2,489) | |
Income before income taxes | 239,858 | 178,494 | 558,922 | |
Capital expenditures | 174,437 | 260,378 | 233,847 | |
Depreciation and amortization | 226,866 | 206,897 | 166,781 | |
General Corporate Expenses | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (464,172) | (382,824) | (390,955) | |
International | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | [2] | 837,425 | 721,719 | 673,979 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 5,031,579 | 4,769,691 | 4,931,975 | |
Operating income | 875,658 | 708,873 | 1,009,960 | |
Operating Segments | American Eagle | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 3,361,579 | 3,262,893 | 3,555,706 | |
Operating income | 599,796 | 541,406 | 795,960 | |
Capital expenditures | 61,139 | 85,033 | 47,106 | |
Depreciation and amortization | 77,195 | 66,820 | 59,641 | |
Operating Segments | Aerie | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 1,670,000 | 1,506,798 | 1,376,269 | |
Operating income | 275,862 | 167,467 | 214,000 | |
Capital expenditures | 40,746 | 107,084 | 80,062 | |
Depreciation and amortization | 61,249 | 53,921 | 33,834 | |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 489,056 | 469,371 | 81,951 | |
Operating income | (36,124) | (56,793) | (15,996) | |
Capital expenditures | 32,235 | 32,717 | 3,932 | |
Depreciation and amortization | 18,874 | 16,067 | 2,023 | |
Intersegment Elimination | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | (258,865) | (249,229) | (3,140) | |
Capital expenditures | 40,317 | 35,544 | 102,747 | |
Depreciation and amortization | $ 69,548 | $ 70,089 | $ 71,284 | |
[1] Refer to Note 16. to the Consolidated Financial Statements for additional information. 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. |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Geographical Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenue | $ 5,261,770 | $ 4,989,833 | $ 5,010,785 | |
Long-lived assets, net: | ||||
Total long-lived assets, net | 1,990,041 | 2,227,994 | ||
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenue | 4,424,345 | 4,268,114 | 4,336,806 | |
Long-lived assets, net: | ||||
Total long-lived assets, net | 1,521,392 | 2,050,459 | ||
Foreign | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total net revenue | [1] | 837,425 | 721,719 | $ 673,979 |
Long-lived assets, net: | ||||
Total long-lived assets, net | $ 468,649 | $ 177,535 | ||
[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. |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Charges - Summary of Impairment and Restructuring Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Charges recorded in operating expenses: | ||||
Impairment and restructuring charges | $ 141,695 | $ 22,209 | $ 11,944 | |
Asset impairment charges | 116,365 | 20,633 | 11,944 | |
Impairment, restructuring and other charges | 141,695 | 22,209 | 11,944 | |
Total Company impairment, restructuring and other charges | [1] | 152,645 | 22,209 | 11,944 |
U.S. and Canada Store Asset | ||||
Charges recorded in operating expenses: | ||||
Asset impairment charges | [2] | 10,368 | 3,195 | |
Corporate | ||||
Charges recorded in operating expenses: | ||||
Impairment and restructuring charges | [3] | 11,241 | 2,575 | |
International | ||||
Charges recorded in cost of sales: | ||||
Inventory charges | [4] | 10,950 | ||
Charges recorded in operating expenses: | ||||
Impairment, restructuring and other charges | 21,800 | |||
Hong Kong | ||||
Charges recorded in operating expenses: | ||||
Impairment and restructuring charges | [5] | 10,882 | 7,997 | $ 6,174 |
Japan Market Exit Costs | ||||
Charges recorded in operating expenses: | ||||
Impairment and restructuring charges | 10,900 | |||
Quiet Platforms | ||||
Charges recorded in operating expenses: | ||||
Asset impairment charges | 74,800 | 2,800 | ||
Impairment, restructuring and other charges | [6] | $ 119,572 | $ 3,844 | |
[1] Refer to Note 16. to the Consolidated Financial Statements for additional information. 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. For Fiscal 2021, $ 3.2 million consisting of $ 2.2 million of store property and equipment and $ 1.0 million of ROU assets related to insufficient cash flows to support the asset value. $ 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. For Fiscal 2021, impairment of $ 2.6 million of other assets. $ 11.0 million of inventory write-down charges related to our international businesses as further described in paragraph 1 of note (3) below . $ 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. For Fiscal 2021, $ 6.2 million of store impairment related to insufficient prospective cash flows to support the asset value. $ 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. |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Charges - Summary of Impairment and Restructuring Charges (Parenthetical) (Detail) | 12 Months Ended | ||||
Feb. 03, 2024 USD ($) Store | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | |||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment, restructuring and other charges | $ 141,695,000 | $ 22,209,000 | $ 11,944,000 | ||
Impairment and restructuring charges | 141,695,000 | 22,209,000 | 11,944,000 | ||
Impairment charges | 116,365,000 | 20,633,000 | 11,944,000 | ||
Definite-lived impairment charges | $ 40,533,000 | [1] | $ 0 | $ 0 | |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment and restructuring charges | Impairment and restructuring charges | Impairment and restructuring charges | ||
Goodwill impairment | $ 39,598,000 | [2] | $ 0 | $ 0 | |
Number of retail stores | Store | 1,500 | ||||
International | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Inventory write-down charges | [3] | $ 10,950,000 | |||
Impairment, restructuring and other charges | 21,800,000 | ||||
Japan | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Long-term asset impairment | 3,600,000 | ||||
Impairment of operating lease ROU assets | 4,700,000 | ||||
Hong Kong | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment and restructuring charges | [4] | 10,882,000 | 7,997,000 | 6,174,000 | |
Long-term asset impairment | 1,300,000 | ||||
Severance costs | 1,300,000 | ||||
Corporate | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment and restructuring charges | [5] | 11,241,000 | 2,575,000 | ||
Severance costs | 6,000,000 | ||||
Other assets | 5,200,000 | 2,600,000 | |||
Down Sizing Hong Kong Retail Operations | International | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Severance costs | 500,000 | ||||
Japan Market Exit Costs | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment and restructuring charges | $ 10,900,000 | ||||
Number of retail stores | Store | 4 | ||||
Japan Market Exit Costs | Japan | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment of operating lease ROU assets | $ 4,700,000 | ||||
Retail Stores | International | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment and restructuring charges | 7,500,000 | 6,200,000 | |||
Retail Stores | Hong Kong | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment of operating lease ROU assets | 1,300,000 | ||||
Quiet Platforms | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment, restructuring and other charges | [6] | 119,572,000 | 3,844,000 | ||
Impairment charges | 74,800,000 | 2,800,000 | |||
Definite-lived impairment charges | $ 40,500,000 | ||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment and restructuring charges | ||||
Long-term asset impairment | $ 24,700,000 | ||||
Goodwill impairment | 39,600,000 | ||||
Contract related charges | 4,900,000 | ||||
Severance costs | 9,900,000 | ||||
Impairment of operating lease ROU assets | 2,300,000 | ||||
Quiet Platforms | Jacksonville, FL Distribution Center | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Severance costs | 1,000,000 | ||||
Customer Relationships | Quiet Platforms | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Definite-lived impairment charges | 31,200,000 | ||||
Trade Names | Quiet Platforms | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Definite-lived impairment charges | 9,300,000 | ||||
U.S. and Canada Store Asset | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment charges | [7] | 10,368,000 | 3,195,000 | ||
Impairment of operating lease ROU assets | 9,200,000 | 1,000,000 | |||
Store Property and Equipment | Retail Stores | Japan Market Exit Costs | Japan | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment charges | $ 3,600,000 | ||||
Store Property and Equipment | U.S. and Canada Store Asset | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment charges | 1,200,000 | $ 2,200,000 | |||
Property and Equipment | Quiet Platforms | Jacksonville, FL Distribution Center | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment charges | $ 500,000 | ||||
[1] Impairment included $ 31.2 million of customer relationships and $ 9.3 million of trade names related to Quiet Platforms. Refer to Note 16 of the Consolidated Financial Statements for additional information Goodwill for the Quiet Platforms reporting unit was fully impaired during Fiscal 2023. Refer to Note 16 of the Consolidated Financial Statements for additional information. $ 11.0 million of inventory write-down charges related to our international businesses as further described in paragraph 1 of note (3) below . $ 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. For Fiscal 2021, $ 6.2 million of store impairment related to insufficient prospective cash flows to support the asset value. $ 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. For Fiscal 2021, impairment of $ 2.6 million of other assets. $ 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. 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. For Fiscal 2021, $ 3.2 million consisting of $ 2.2 million of store property and equipment and $ 1.0 million of ROU assets related to insufficient cash flows to support the asset value. |
Impairment, Restructuring and_5
Impairment, Restructuring and Other Charges - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | $ 141,695 | $ 22,209 | $ 11,944 | |
International | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | 21,800 | |||
Quiet Platforms | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | [1] | $ 119,572 | $ 3,844 | |
[1] $ 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. |
Impairment, Restructuring and_6
Impairment, Restructuring and Other Charges - Rollforward of Restructuring Liabilities Recognized in Consolidated Balance Sheets (Detail) $ in Thousands | 12 Months Ended |
Feb. 03, 2024 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Add: Costs incurred, excluding non-cash charges | $ 17,407 |
Less: Cash payments and adjustments | (5,993) |
Accrued liability as of February 3, 2024 | $ 11,414 |