AMERICAN EAGLE OUTFITTERS INC Goodwill & Intangibles Disclosure
7. Goodwill and Intangible Assets, Net
Goodwill and definite-lived intangible assets, net consist of the following:
|
|
Fiscal Years Ending |
|
|||||||||||||||||||||
|
|
January 31, 2026 |
|
|
February 1, 2025 |
|
||||||||||||||||||
(In thousands) |
|
American Eagle |
|
|
Aerie |
|
|
Total |
|
|
American Eagle |
|
|
Aerie |
|
|
Total |
|
||||||
Goodwill, beginning balance(1) |
|
$ |
114,479 |
|
|
$ |
110,600 |
|
|
$ |
225,079 |
|
|
$ |
114,703 |
|
|
$ |
110,600 |
|
|
$ |
225,303 |
|
Foreign currency fluctuation |
|
|
190 |
|
|
|
|
|
|
190 |
|
|
|
(224 |
) |
|
|
|
|
|
(224 |
) |
||
Goodwill, ending balance |
|
$ |
114,669 |
|
|
$ |
110,600 |
|
|
$ |
225,269 |
|
|
$ |
114,479 |
|
|
$ |
110,600 |
|
|
$ |
225,079 |
|
|
|
Fiscal Year Ending January 31, 2026 |
|
|||||||||||||
|
|
Intangible assets, |
|
|
Accumulated |
|
|
Accumulated |
|
|
Intangible assets, |
|
||||
(In thousands) |
|
gross |
|
|
amortization |
|
|
impairment (1) |
|
|
net |
|
||||
Trademarks |
|
$ |
96,468 |
|
|
$ |
(59,000 |
) |
|
$ |
- |
|
|
$ |
37,468 |
|
Trade names |
|
|
12,500 |
|
|
|
(1,826 |
) |
|
|
(10,674 |
) |
|
|
- |
|
Customer relationships |
|
|
39,000 |
|
|
|
(7,800 |
) |
|
|
(31,200 |
) |
|
|
- |
|
Total intangible assets |
|
$ |
147,968 |
|
|
$ |
(68,626 |
) |
|
$ |
(41,874 |
) |
|
$ |
37,468 |
|
|
|
Fiscal Year Ending February 1, 2025 |
|
|||||||||||||
|
|
Intangible assets, |
|
|
Accumulated |
|
|
Accumulated |
|
|
Intangible assets, |
|
||||
(In thousands) |
|
gross |
|
|
amortization |
|
|
impairment (1) |
|
|
net |
|
||||
Trademarks |
|
$ |
95,856 |
|
|
$ |
(54,791 |
) |
|
$ |
- |
|
|
$ |
41,065 |
|
Trade names |
|
|
12,500 |
|
|
|
(1,783 |
) |
|
|
(9,333 |
) |
|
|
1,384 |
|
Customer relationships |
|
|
39,000 |
|
|
|
(7,800 |
) |
|
|
(31,200 |
) |
|
|
- |
|
Total intangible assets |
|
$ |
147,356 |
|
|
$ |
(64,374 |
) |
|
$ |
(40,533 |
) |
|
$ |
42,449 |
|
Amortization expense is as follows:
|
|
Fiscal Years Ending |
|
|||||||||
(In thousands) |
|
January 31, 2026 |
|
|
February 1, 2025 |
|
|
February 3, 2024 |
|
|||
Amortization expense |
|
$ |
4,324 |
|
|
$ |
4,432 |
|
|
$ |
8,748 |
|
The table below summarizes the estimated future amortization expense for intangible assets existing as of January 31, 2026 for the next five fiscal years:
|
|
Future |
|
|
|
(In thousands) |
|
Amortization |
|
|
|
2026 |
|
$ |
3,949 |
|
|
2027 |
|
$ |
3,877 |
|
|
2028 |
|
$ |
3,851 |
|
|
2029 |
|
$ |
3,671 |
|
|
2030 |
|
$ |
3,506 |
|
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 30, 2026 | Showing above |
| 2025 | Mar 20, 2025 | |
| 2024 | Mar 15, 2024 | |
| 2023 | Mar 13, 2023 | |
| 2022 | Mar 14, 2022 | |
| 2021 | Mar 11, 2021 | |
| 2020 | Mar 12, 2020 | |
| 2019 | Mar 14, 2019 | |
| 2018 | Mar 16, 2018 | |
| 2017 | Mar 10, 2017 | |
| 2016 | Mar 10, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.