American Eagle Outfitters 2004 Annual Report Download - page 15

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1
Part I
PART I
ITEM 1. BUSINESS.
Overview
American Eagle Outfitters, Inc., a Delaware corporation, is a leading lifestyle retailer that designs, markets and sells
our own brand of relaxed, casual clothing for 15 to 25 year olds, providing high-quality merchandise at affordable
prices. We opened our first American Eagle Outfitters store in the United States in 1977 and expanded the brand into
Canada in 2001. We also distribute merchandise via our e-commerce operation, ae.com. Our collection offers
modern basics like jeans, cargo pants, and graphic T's as well as a stylish assortment of accessories, outerwear and
footwear under our American Eagle Outfitters® and AE® brand names.
As of January 29, 2005, we operated 846 American Eagle Outfitters stores in the United States and Canada.
As used in this report, all references to "we," "our," and "the Company" refer to American Eagle Outfitters, Inc. and
its wholly-owned subsidiaries. The term "American Eagle" refers to our U.S. and Canadian American Eagle
Outfitters stores and the Company's e-commerce operation. "Bluenotes" refers to the Bluenotes/Thriftys specialty
apparel chain which we operated in Canada prior to its disposition during Fiscal 2004.
Information concerning the Company's business segments and certain geographic information is contained in Note 2
of the Consolidated Financial Statements included in this Form 10-K and is incorporated herein by reference.
Organization
On April 13, 1994, the Company successfully completed an initial public offering of its common stock. Our stock is
traded on the Nasdaq National Market under the symbol "AEOS".
In November 2000, we acquired three businesses in Canada - the Bluenotes chain, a Canadian brand which we
disposed of during Fiscal 2004; the Braemar chain, with real estate in prime mall locations, of which 46 were
converted to American Eagle stores during Fiscal 2001; and National Logistics Services ("NLS"), a 400,000 square
foot distribution center near Toronto, which handles all of the distribution needs for our Canadian stores and
provides services to third parties.
In December 2004, we completed the disposition of Bluenotes to 6295215 Canada Inc. (the “Purchaser”), a privately
held Canadian company. As a result, the Company’s Consolidated Statements of Operations and Consolidated
Statements of Cash Flows reflect Bluenotes’ results of operations as discontinued operations for all periods presented
(note that amounts in the Company’s Consolidated Balance Sheets have not been reclassified to reflect Bluenotes as
discontinued operations). See Note 10 of the Consolidated Financial Statements for additional information regarding
this transaction.
Our financial year is a 52/53 week year that ends on the Saturday nearest to January 31. As used herein, "Fiscal
2004," "Fiscal 2003" and "Fiscal 2002" refer to the fifty-two week periods ended January 29, 2005, January 31,
2004 and February 1, 2003, respectively. "Fiscal 2005" refers to the fifty-two week period ending January 28, 2006.