American Eagle Outfitters 2005 Annual Report Download - page 31

AMERICAN EAGLE OUTFITTERS PAGE 7
Available Information
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to
those reports are available, free of charge, under the “About AE” section of our website at www.ae.com. These reports
are available as soon as reasonably practicable after such material is electronically filed with the Securities and
Exchange Commission.
Our corporate governance materials, including our corporate governance guidelines; the charters of our audit,
compensation, and nominating and corporate governance committees; and our code of ethics may also be found under
the “About AE” section of our website at www.ae.com. Any amendments or waivers to our code of ethics will also be
available on our website. A copy of the corporate governance materials is also available upon written request.
Additionally, our investor presentations are available under the “About AE” section of our website at www.ae.com.
These presentations are available as soon as reasonably practicable after they are presented at investor conferences.
ITEM 1A. RISK FACTORS.
This report contains various “forward-looking statements” within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represent our
expectations or beliefs concerning future events, including the following:
xthe planned opening of approximately 50 American Eagle stores in the United States and Canada during Fiscal 2006;
xthe selection of approximately 50 American Eagle stores in the United States and Canada for remodeling during
Fiscal 2006;
xthe completion of improvements and expansion at our distribution centers;
xthe possibility of growth through acquisitions and/or internally developing additional new brands;
xthe expected payment of a dividend in future periods;
xthe launch of our new brand concept, MARTIN + OSA, during Fiscal 2006, including the planned opening of
approximately four to six stores in the United States;
xthe launch of our new intimates sub-brand, aerie by American Eagle, during Fiscal 2006; and
xthe completion of the purchase and initiation of the construction of our new corporate headquarters and data center.
We caution that these statements are further qualified by factors that could cause our actual results to differ materially
from those in the forward-looking statements, including without limitation, the following:
Our ability to anticipate and respond to changing consumer preferences and fashion trends in a timely manner
Our future success depends, in part, upon our ability to identify and respond to fashion trends in a timely manner.
The specialty retail apparel business fluctuates according to changes in the economy and customer preferences, dictated
by fashion and season. These fluctuations especially affect the inventory owned by apparel retailers because
merchandise typically must be ordered well in advance of the selling season. While we endeavor to test many
merchandise items before ordering large quantities, we are still susceptible to changing fashion trends and fluctuations
in customer demands.
during our peak selling seasons. We enter into agreements for the manufacture and purchase of our private label apparel
well in advance of the applicable selling season. As a result, we are vulnerable to changes in consumer demand, pricing
shifts, and the timing and selection of merchandise purchases. The failure to enter into agreements for the manufacture
and purchase of merchandise in a timely manner could, among other things, lead to a shortage of inventory and lower
sales. Changes in fashion trends, if unsuccessfully identified, forecasted or responded to by us, could, among other
things, lead to lower sales, excess inventories and higher markdowns, which in turn could have a material adverse effect
on our results of operations and financial condition.
In addition, the cyclical nature of the retail business requires that we carry a significant amount of inventory, especially