American Eagle Outfitters Signs Definitive Agreement to Sell its Bluenotes Operation.WARRENDALE, Pa. -- American Eagle Outfitters, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AEOS AEOS American Eagle Outfitters Inc. (stock symbol) AEOS Advanced Electro-Optical System (3.67 meter adaptive optical telescope on Maui) AEOS Advanced Electro Optical Sensor ) today announced that the Company has entered into a definitive agreement for the disposition of its Bluenotes retail apparel business to a private company controlled by Mr. Michael Gold, owner of YM Inc., (Sales), a prominent Canadian retailer. The transaction is scheduled to close on December 5, 2004, and is subject to customary conditions and regulatory approvals. American Eagle Outfitters will recognize a fourth quarter loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of approximately $0.08 to $0.11 per diluted share related to Bluenotes. As announced last week, Management expects fourth quarter earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the to be in the range of $1.00 to $1.03 per share. This compares to $0.57 per share from continuing operations in the fourth quarter of last year. The Company will provide updated earnings guidance with the November sales announcement on Wednesday, December 1st. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Eagle Outfitters, Jim O'Donnell, commented, "We greatly appreciate the hard work and dedication of the Bluenotes team. Michael Gold has extensive retail experience in Canada, which we are confident will lead to future success. With the sale of Bluenotes, we can now devote our attention to expanding the AE brand in the U.S., Canada and worldwide. We are also well-positioned to focus on the development of our next U.S. retail concept, which will drive additional future growth." American Eagle Outfitters (NASDAQ:AEOS) is a leading lifestyle retailer that designs, markets, and sells its own brand of relaxed, casual clothing for 15 to 25 year olds, providing high-quality merchandise at affordable prices. AE's collection includes modern basics like jeans, cargo pants cargo pants or trousers Noun, pl loose trousers with a large external pocket on the side of each leg , and graphic Ts as well as a stylish assortment of cool accessories, outerwear and footwear. AE's Canadian subsidiary, Bluenotes/Thriftys, offers a more urban/suburban, denim-driven collection for 12 to 22 year olds. American Eagle Outfitters currently operates 779 AE stores in 49 states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). and Puerto Rico, 69 AE stores in Canada, and 109 Bluenotes/Thriftys stores in Canada. AE also operates via its Web business, www.ae.com, which offers additional sizes and styles of favorite AE merchandise. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release contains forward-looking statements, which represent our expectations or beliefs concerning future events, specifically regarding fourth quarter earnings and the proposed sale of Bluenotes. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company's control. Such factors include, but are not limited to the risk that the proposed sale of Bluenotes may not be completed, the risk that our fourth quarter sales, markdowns and/or earnings expectations may not be achieved, and those other risks described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise its forward-looking statements even if future changes make it clear that projected results expressed or implied will not be realized. |
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