14. Segment Reporting

In accordance with ASC 280, Segment Reporting ("ASC 280"), the Company has identified two operating segments (American Eagle brand and Aerie brand) that also represent our reportable segments and reflect the CODM’s (defined as our CEO) internal view of analyzing results and allocating resources. Additionally, our Todd Snyder brand, Unsubscribed brand, and Quiet Platforms have been identified as separate operating segments; however, as they do not meet the quantitative thresholds for separate disclosure, they are presented under the "Other" caption, as permitted by ASC 280.

 

Unallocated corporate expenses are comprised of general and administrative costs that management does not attribute to any of our operating segments. These costs primarily relate to corporate administration, information and technology resources, finance and human resources functional and organizational costs, depreciation and amortization of corporate assets, and other general and administrative expenses resulting from corporate-level activities and projects.

Our CEO analyzes segment results and allocates resources between segments based on the adjusted operating income (loss), or the operating income (loss) in periods where there are no adjustments, of each segment. Adjusted operating income (loss) is a non-GAAP financial measure ("non-GAAP" or "adjusted") that is defined by the Company as operating income excluding impairment, restructuring and other charges. Adjusted operating income (loss) is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. We believe that this non-GAAP information is useful as an additional means for investors to evaluate our operating performance, when reviewed in conjunction with our GAAP consolidated financial statements and provides a higher degree of transparency.

Reportable segment information is presented in the following table:

For the year ended January 31, 2026 (In thousands)

 

American Eagle

 

 

Aerie

 

 

Other

 

 

Intersegment Elimination

 

 

Total

 

Net Revenue

 

$

3,411,237

 

 

$

1,940,924

 

 

$

226,027

 

 

$

(30,952

)

 

$

5,547,236

 

Cost of sales, including certain buying, occupancy and warehousing costs

 

 

2,116,039

 

 

 

1,156,194

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

756,038

 

 

 

379,282

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

84,047

 

 

 

59,574

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

455,113

 

 

$

345,874

 

 

$

(44,379

)

 

$

-

 

 

$

756,608

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(428,783

)

Impairment, restructuring and other charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(101,603

)

Total operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

226,222

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,112

 

Other (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(27,278

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

249,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended February 1, 2025 (In thousands)

 

American Eagle

 

 

Aerie

 

 

Other

 

 

Intersegment Elimination

 

 

Total

 

Net Revenue

 

$

3,385,231

 

 

$

1,738,414

 

 

$

243,907

 

 

$

(38,900

)

 

$

5,328,652

 

Cost of sales, including certain buying, occupancy and warehousing costs

 

 

1,976,914

 

 

 

1,018,418

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

727,590

 

 

 

345,054

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

74,220

 

 

 

59,097

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

606,507

 

 

$

315,845

 

 

$

(53,722

)

 

$

-

 

 

$

868,630

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(423,766

)

Impairment, restructuring and other charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(17,561

)

Total operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

427,303

 

Interest (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,769

)

Other (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,685

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

439,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended February 3, 2024 (In thousands)

 

American Eagle

 

 

Aerie

 

 

Other

 

 

Intersegment Elimination

 

 

Total

 

Net Revenue

 

$

3,361,579

 

 

$

1,670,000

 

 

$

489,056

 

 

$

(258,865

)

 

$

5,261,770

 

Cost of sales, including certain buying, occupancy and warehousing costs

 

 

1,955,069

 

 

 

1,009,650

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

729,519

 

 

 

323,239

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

77,195

 

 

 

61,249

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

$

599,796

 

 

$

275,862

 

 

$

(36,124

)

 

$

-

 

 

$

839,534

 

Unallocated corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(464,172

)

Impairment, restructuring and other charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(152,645

)

Total operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

222,717

 

Interest (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,190

)

Other (income), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,009

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

238,916

 

 

(1) Refer to Note 15, Impairment, Restructuring and Other Charges, to the Consolidated Financial Statements for additional information.

 

 

Fiscal Years Ending

 

 

January 31, 2026

 

 

February 1, 2025

 

 

February 3, 2024

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

 

 

 

    American Eagle

$

96,816

 

 

$

86,953

 

 

$

61,139

 

    Aerie

 

85,670

 

 

 

68,541

 

 

 

40,746

 

    Other

 

13,766

 

 

 

11,965

 

 

 

32,235

 

   General corporate expenditures

 

64,543

 

 

 

55,079

 

 

 

40,317

 

Total Capital Expenditures

$

260,795

 

 

$

222,538

 

 

$

174,437

 

 

We do not allocate assets to the reportable segment level and therefore our CODM does not use segment asset information to make decisions.

Total net revenue for the American Eagle and Aerie reportable segments above represents revenue attributable to each brand's merchandise, which comprises approximately 96% of total net revenue.

The following tables present summarized geographical information:

 

 

 

Fiscal Years Ending

 

 

 

January 31,

 

 

February 1,

 

 

February 3,

 

(In thousands)

 

2026

 

 

2025

 

 

2024

 

Total net revenue:

 

 

 

 

 

 

 

 

 

United States

 

$

4,627,201

 

 

$

4,492,630

 

 

$

4,424,345

 

Foreign (1)

 

 

920,035

 

 

 

836,022

 

 

 

837,425

 

Total net revenue

 

$

5,547,236

 

 

$

5,328,652

 

 

$

5,261,770

 

 

(1)
Amounts represent sales from American Eagle and Aerie international retail stores, and e-commerce sales that are billed to and/or shipped to foreign countries and international franchise royalty revenue.

 

 

 

Fiscal Years Ending

 

 

 

January 31,

 

 

February 1,

 

(In thousands)

 

2026

 

 

2025

 

Long-lived assets, net:

 

 

 

 

 

 

United States

 

$

2,052,498

 

 

$

1,887,502

 

Foreign

 

 

183,716

 

 

 

159,162

 

Total long-lived assets, net

 

$

2,236,214

 

 

$

2,046,664

 

Historical Timeline

Fiscal YearFiled
2026Mar 30, 2026Showing above
2025Mar 20, 2025
2024Mar 15, 2024
2023Mar 13, 2023
2022Mar 14, 2022
2021Mar 11, 2021

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.