American Eagle Outfitters 2008 Annual Report Download - page 43

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AMERICAN EAGLE OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JANUARY 31, 2009
1. Business Operations
American Eagle Outfitters, Inc., a Delaware corporation, is a leading retailer that operates under the American
Eagle Outfitters», aerie»by American Eagle, 77kids
TM
by american eagle and MARTIN + OSA»brands.
American Eagle Outfitters designs, markets and sells its own brand of high quality, on-trend clothing,
accessories and personal care products at affordable prices while targeting 15 to 25 year-old customers. The
Company opened its first American Eagle Outfitters store in the United States in 1977 and expanded the brand into
Canada in 2001. American Eagle Outfitters also operates ae.com˛, which offers additional sizes, colors and styles
of favorite AE»merchandise and ships to 62 countries around the world. AE’s original collection includes standards
like jeans and graphic Ts, as well as essentials like accessories, outerwear, footwear, basics and swimwear under our
American Eagle Outfitters, American Eagle˛and AE brand names.
During Fiscal 2006, American Eagle Outfitters launched its new intimates brand, aerie by American Eagle
(“aerie”). The aerie collection is available in aerie stores, predominantly all American Eagle stores and at aerie.com.
The collection offers Dormwear»and intimates collections for the AE»girl. Designed to be subtly sexy,
comfortable and cozy, the aerie brand offers AE customers a new way to express their personal style everyday,
from the dormroom to the coffee shop to the classroom.
The Company also introduced MARTIN + OSA»(“M+O”) during Fiscal 2006, a concept targeting 28 to
40 year-old women and men, which offers Refined Casual
TM
clothing and accessories, designed to be valuable,
irresistible, inspiring, authentic and adventurous. In Fiscal 2008, MARTIN + OSA began offering merchandise
online at martinandosa.com.
In October 2008, the Company launched a new children’s apparel brand, 77kids
TM
by american eagle
(“77kids”). The 77kids brand offers “kid cool,” durable clothing and accessories for kids ages two to 10. The
brand debuted worldwide online at 77kids.com during Fiscal 2008, with future plans for stores in the U.S.
The following table sets forth the approximate consolidated percentage of net sales attributable to each
merchandise group for each of the periods indicated:
January 31,
2009
February 2,
2008
February 3,
2007
For the Years Ended
Men’s apparel and accessories........................ 42% 38% 37%
Women’s apparel, accessories and intimates ............. 58% 62% 63%
Total ........................................ 100% 100% 100%
2. Summary of Significant Accounting Policies
Principles of Consolidation
The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsid-
iaries. All intercompany transactions and balances have been eliminated in consolidation. At January 31, 2009, the
Company operated in one reportable segment.
Fiscal Year
The Company’s financial year is a 52/53 week year that ends on the Saturday nearest to January 31. As used
herein, “Fiscal 2010” and “Fiscal 2009” refer to the 52 week periods ending January 29, 2011 and January 30, 2010,
respectively. “Fiscal 2008” and “Fiscal 2007” refer to the 52 week periods ended January 31, 2009 and February 2,
2008, respectively. “Fiscal 2006” refers to the 53 week period ended February 3, 2007. “Fiscal 2005” and “Fiscal
2004” refer to the 52 week periods ended January 28, 2006 and January 29, 2005, respectively.
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