AMERICAN EAGLE OUTFITTERS INC

14. Subsequent Events

U.S. Tariff Refund Update

Beginning on May 12, 2026, the Company began to receive refunds of its tariff claims submitted through CBP’s CAPE system. As of the date of this Quarterly Report, the Company has received refundsof $108.3 million. This amount, plus any additional refunds received will be recorded as a reduction of cost of sales for the 13 weeks ending August 1, 2026. The timing and ultimate availability of any additional refunds remains uncertain.

During Fiscal 2025, prior to the U.S. Supreme Court decision invalidating the IEEPA tariffs, the Company entered into a participation agreement with a third-party buyer (the "buyer") pursuant to which the Company sold a portion of its claims for refunds of previously paid tariffs imposed under the IEEPA (the "Participation Agreement"). Under the terms of the Participation Agreement, the third-party purchased $68.9 million of the Company's refund claims for $18.6 million in cash, which was accounted for under ASC 470, Debt. Accretion expense related to the Participation Agreement is recorded as interest expense. Any benefit associated with the claims included in the Participation Agreement are owed to the buyer when a refund is received from CBP. As a result of refunds received subsequent to May 2, 2026, $33.1 million was paid to the buyer as of the filing date of this Quarterly Report.