American Eagle Outfitters 2001 Annual Report Download

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AE 2001 Annual Report

Table of contents

  • Page 1
    AE 2001 Annual Report

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    AE 2001 Annual Report

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    ...Limited purchased by the Company as discussed in Note 3 of the Consolidated Financial Statements. (3) The U.S. comparable store sales increase for the period ended February 3, 2001 was compared to the corresponding 53-week period in the prior year. (4) Net sales per average square foot is calculated...

  • Page 5
    ...$ 144,795 48,359 48,486 90,808 - 1.90 24.1% Other Financial Information Total stores at year-end-American Eagle Outfitters Total stores at year-end-Bluenotes/Thriftys Capital expenditures (000's) Net sales per average selling square foot (4) Total selling square feet at end of period Net sales per...

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    AE Net Sales AE Gross Profit 97 in millions 98 99 00 01 97 in millions 98 99 00 01 $ 1,372 $ 1,093 $ 832 $ 588 $ 406 $ 137 $ 235 $ 357 $ 436 $ 547

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    AE Earnings Per Share AE Stockholders' Equity 97 98 99 00 01 in millions 97 98 99 00 01 per diluted share $ 1.43 $ 1.24 $ 1.30 $ 368 $ 0.75 $ 151 $ 0.29 $ 91 $ 265 $ 502

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    AE 2001 Letter to Stockholders

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    ...Stockholders, Fiscal 2001 was yet another record year for American Eagle Outfitters. For ...market share, making our stores and our website a dominant destination for 16 - 34 year olds. We ended the year in excellent financial condition, well-positioned for future growth. Our net income in Fiscal 2001...

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    ... expansion. We took American Eagle Outfitters to Canada in 2001, opening 46 stores across the country. As a part of our 2000 acquisition, we obtained prime real estate in Canada's most productive malls. The AE brand was met with success from Vancouver to Halifax, as Canadians responded positively to...

  • Page 20
    ... in - store marketing as well as strategic direct mail promotions and powerful targeted marketing. We launched our first-ever national TV campaigns in 2001, which aired in the U.S. and Canada during the back-to-school and holiday seasons on MTV, WB, Comedy Central, and Much Music. The ads captured...

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    ... flow, targeted e-mail marketing and site enhancements significantly improved profit margins in 2001. New site features in 2001 were well received by our customers, including enhanced product images and descriptions, expanded size ranges not carried in our stores, easier checkout and a Wish List...

  • Page 24
    ... customer. We remain committed to growing our Company for the future and increasing shareholder value. Thank you for your continued support. Jay L. Schottenstein Chairman of the Board and Chief Executive Officer James V. O'Donnell Chief Operating Officer Roger S. Markfield President and Chief...

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    AE Consolidated Financial Statements

  • Page 30
    ... the growth of our AE brand and our ability to gain market share. We opened 81 new stores and closed three stores in the United States and opened 46 new stores in Canada, increasing our total American Eagle Outfitters store count to 678. We also opened three Bluenotes/Thriftys stores in Canada...

  • Page 31
    ..., and increased general services purchased costs. Depreciation and amortization expense increased to $23.2 million from $12.2 million. As a percent of net sales, these expenses increased to 2.1% from 1.4%. The increase includes $5.4 million related to new stores in the United States and Canada. The...

  • Page 32
    ...2002) plus 120 basis points. There were no borrowings under the operating facility for the year ended February 2, 2002. Capital expenditures, net of construction allowances, totaled $119.3 million for Fiscal 2001, of which $49.2 million related to the addition of 127 new American Eagle stores in the...

  • Page 33
    ...in several corporate aircraft. The Company also incurred operating costs and usage fees during Fiscal 2001 under this arrangement. In connection with the liquidation of certain inventory from the Canadian acquisition, the Company contracted the services of a related party consultant, an affiliate of...

  • Page 34
    ... material adverse effect on our financial condition and results of operations for the entire year. Our quarterly results of operations also may fluctuate based upon such factors as the timing of certain holiday seasons, the number and timing of new store openings, the amount of net sales contributed...

  • Page 35
    ... Sheets Feb 2, 2002 in thousands Feb 3, 2001 Assets Current assets: Cash and cash equivalents Short-term investments Merchandise inventory Accounts and note receivable, including related party Prepaid expenses and other Deferred income taxes Total current assets Property and equipment, at cost...

  • Page 36
    ... Selling, general and administrative expenses Depreciation and amortization expense Operating income Other income (expense), net Income before income taxes Provision for income taxes Net income Basic income per common share Diluted income per common share Weighted average common shares outstanding...

  • Page 37
    ...2001, and Jan 29, 2000 in thousands Shares (1) Common Stock Contributed Capital Retained Earnings Treasury Stock Deferred Compensation Expense...- February 23, 2001 Comprehensive income: Net... 2001 ... 2002, February 3, 2001 and January 29, 2000, respectively . The Company has 5 million authorized,...

  • Page 38
    ...related party Prepaid expenses and other Accounts payable Unredeemed stored value cards and gift certificates Accrued liabilities Total adjustments Net cash provided by operating activities Investing activities: Capital expenditures Purchase of an import services company, Blue Star Imports...833 150,...

  • Page 39
    ...Consolidated Financial Statements For the Year Ended February 2, 2002 Note 1. Business Operations American Eagle Outfitters, Inc. (the "Company") designs, markets, and sells its AE brand of relaxed, clean, and versatile clothing for 16 to 34 year olds in its United States and Canadian retail stores...

  • Page 40
    ...and commercial paper classified as available for sale. Merchandise Inventory Merchandise inventory is valued at the lower of average cost or market, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company reviews its inventory levels...

  • Page 41
    ...in selling, general and administrative expenses. Goodwill Goodwill amounts of $20.1 million in connection with the Canadian acquisition and $8.5 million in connection with the importing operations acquisition were amortized through February 2, 2002. The Company's policy is to periodically review the...

  • Page 42
    ... takes place. All other advertising costs are expensed as incurred. The Company recognized $45.3 million, $36.3 million and $27.2 million in advertising expense during Fiscal 2001, Fiscal 2000, and Fiscal 1999, respectively. Supplemental Disclosures of Cash Flow Information For the years ended in...

  • Page 43
    ... intention to convert certain retail locations to American Eagle retail stores. Management finalized and approved a plan related to this conversion during Fiscal 2000. The Company accrued approximately $7.3 million in exit costs consisting primarily of operating losses of the discontinued businesses...

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    ... cover its share of operating costs based on usage of the corporate aircraft during Fiscal 2001 and Fiscal 2000, respectively. In connection with the liquidation of certain inventory from the Canadian acquisition, the Company contracted the services of a related party consultant, an affiliate of SSC...

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    ...,373 Depreciation expense is summarized as follows: For the years ended in thousands Feb 2, 2002 Feb 3, 2001 Jan 29, 2000 Depreciation expense $ 36,...line of $81.6 million. Uncommitted Letter of Credit Facility During June 2001, the Company entered into an agreement with a separate financial...

  • Page 46
    ... 2, 2002) plus 120 basis points. There were no borrowings under the operating facility for the years ended February 2, 2002 and February 3, 2001. Both the term facility and the operating facility contain restrictive covenants related to financial ratios. As of February 2, 2002, the Company was in...

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    ... relating to these leases are recorded on a straight-line basis. In addition, the Company is typically responsible under its leases for common area maintenance charges, real estate taxes and certain other expenses. These leases are classified as operating leases. Rent expense charged to operations...

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    ... 11. Income Taxes The significant components of the Company's deferred tax assets (there are no deferred tax liabilities) were as follows: Feb 2, 2002 in thousands Feb 3, 2001 Deferred tax assets: Current: Inventories Rent Deferred compensation Marketable equity securities and capital loss Other...

  • Page 49
    ... plan and profit sharing plan. Full-time employees and part-time employees are automatically enrolled to contribute 3% of their salary if they have attained twenty and one-half years of age, have completed sixty days of service, and work at least twenty hours per week. Individuals can decline...

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

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    ... which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company's employee stock options have characteristics significantly different from those...

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    ... 1999, the Company recorded $2.5 million, $5.9 million, and $4.5 million in compensation expense, respectively, on restricted stock. Note 14. Quarterly Financial Information-Unaudited Quarters ended (1) in thousands, except per share amounts May 5, 2001 Aug 4, 2001 Nov 3, 2001 Feb 2, 2002...

  • Page 53
    ... plan and employee stock purchase plan and others holding shares in broker accounts under street name, the Company estimates the shareholder base at approximately 25,000. The following information reflects the February 2001 stock split. For the quarters ended High Market Price Low January...

  • Page 54
    ... of these financial statements. Report of Independent Auditors To the Board of Directors and Stockholders of American Eagle Outfitters, Inc. We have audited the accompanying consolidated balance sheets of American Eagle Outfitters, Inc. as of February 2, 2002 and February 3, 2001 and the related...

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    ... Senior Vice President, Production and Sourcing Susan P. Miller Vice President, General Merchandising Manager Jeffrey D. Skoglind Vice President, Human Resources Jeffrey G. Smith Vice President, Real Estate Lora Tisi President of Bluenotes, Limited Ken Watts Vice President, Information Services 54

  • Page 56
    ... with the Securities and Exchange Commission. Investor Contacts Laura A. Weil Executive Vice President and Chief Financial Officer (724) 776-4857 Judy Meehan Director of Investor Relations (724) 776-4857 Headquarters of the Company 150 Thorn Hill Drive Warrendale, PA 15086-7528 (724) 776-4857 55

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    Store Locations American Eagle Stores 632 Locations in the U.S. Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia 13 6 4 30 10 10 3 1 27 21 Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts 3 25 18 13 6 11 13 2 ...

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