American Eagle Outfitters, Inc. (NYSE:AEO) Q1 2020 Earnings Conference Call - Final Transcript

Jun 03, 2020 • 09:00 am ET


American Eagle Outfitters, Inc. (NYSE:AEO) Q1 2020 Earnings Conference Call - Final Transcript


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Greetings and welcome to the American Eagle Outfitters First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I'd now like to turn the conference over to your host, Judy Meehan. Thank you. You may begin.

Judy Meehan

Good morning, everyone. Joining me today for our prepared remarks are Jay Schottenstein, Chief Executive Officer; Michael Rempell, Chief Operating Officer; and Mike Mathias, Chief Financial Officer. In addition, Chad Kessler, AE Global Brand President and Jenn Foyle, Aerie Global Brand President will be available during the question-and-answer session.

Before we begin today's call, I need to remind you that we will make certain forward-looking statements. These statements are based upon information that represents the company's current expectations or beliefs. The results actually realized may differ materially based on risk factors included in our SEC filings. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Also, please note that during this call and in the accompanying press release certain financial metrics are presented on both the GAAP and non-GAAP adjusted basis, reconciliations of adjusted results to the GAAP results are available in the tables attached to the earnings release, which is posted on our corporate website at in the Investor Relations section. Here you can also find the first quarter investor presentation.

And now I'd like to turn the call over to Jay.

Jay L. Schottenstein

Thanks Judy, and good morning. Thank you for joining us today. I hope all of you are well and staying safe. Since the last time as spoke to you, COVID-19 has dramatically changed the world and our business. I'd like to start by saying how incredibly proud I am of our entire AEO family. The team has demonstrated extraordinary leadership, collaboration, and humanity. Their commitment and agility have enabled us to take quick decisive actions while fueling our business and strong online demand. As we begin to manage through the crisis, our priorities immediately shifted to protecting our people and our business, focusing on liquidity and near-term cash flow, and preparing AEO for a new future.

Our number one priority has been the health and well-being of our associates, customers and communities. In March, we hired a medical consultant to advise us on health and safety and to ensure we have the very best practices in all of our locations. We instituted a work from home in mid-March ahead of stay at home orders. We closed our store shortly thereafter and have taken steps to support our affected associates.

We led the industry by implementing best-in-class protective measures at our distribution centers. This includes providing masks, gloves, thermal temperature scanners, staggered schedules, social distancing protocols and nurses on site. By prioritizing the health and safety of all associates, our distribution centers have continued to operate successfully supporting