WARRENDALE, Pa., Oct 21, 2005 (BUSINESS WIRE) -- American Eagle Outfitters, Inc. (NASDAQ:AEOS) today
announced that it is relocating its Warrendale corporate headquarters
to Pittsburgh's most exciting new urban development. American Eagle
has signed an agreement to purchase an existing 186,000 square foot
building and adjacent land in the SouthSide Works, pending approval by
the Urban Redevelopment Authority and subject to customary conditions.
The building and land purchase price is approximately $21 million, not
including additional construction and interior finishing costs.
AE, founded in 1977, will reside at "77 Hot Metal Street"
featuring a riverfront location, city views and a walking trail in an
urban location with restaurants and shops nearby. While the exterior
building is complete, interior design and office space construction is
expected to be finished in early 2007. After the move, American Eagle
will maintain a presence in Warrendale, with over 300 associates
staying at this site. The relocation of corporate headquarters will
free up space, enabling expansion of the existing Warrendale facility,
which will include construction of a new data center. The Warrendale
operation will be a state-of-the-art technology, logistics and
distribution center, which will support growth as a global,
multi-brand specialty retail company.
"After several years of successful growth and expansion, we have
simply outgrown our current facility," said Jim O'Donnell, Chief
Executive Officer of American Eagle Outfitters. "Additionally, our
distribution and headquarters needs will increase as we pursue future
growth initiatives, which include continued expansion of the AE brand,
as well as the creation and launch of new retail concepts, including
our new brand, Martin + Osa. On behalf of all of our associates, I am
grateful for the partnerships with Governor Rendell's office, the City
of Pittsburgh and Urban Redevelopment Authority, Allegheny County and
the team at Thorn Hill Industrial Park in Warrendale for their support
in helping us make this important decision. And, a special thanks to
Damian Soffer for his vision and partnership on providing American
Eagle with an outstanding corporate headquarters site."
Susan McGalla, President and Chief Merchandising Officer, American
Eagle Brand, commented, "We greatly value the Pittsburgh region and
what it has meant to our success. It is now our goal to create a
corporate headquarters here that is truly branded and reflects our
values and our vision for the future. We recognize that our associates
are our most valuable resource and providing them with a creative and
productive environment is our top priority. The many positive
amenities of our new facility, combined with the exciting urban
environment offered at Pittsburgh's SouthSide Works, will be key to
attracting and retaining a talented workforce, which is absolutely
essential to our continued success."
In commenting on American Eagle's decision to expand its
operations in Pennsylvania and move its home office into the City of
Pittsburgh, Governor Ed Rendell said, "It is tremendous news for
Pittsburgh and the entire Southwest region that American Eagle
Outfitters is investing and growing in Pennsylvania, bringing at least
325 new jobs. Pennsylvania is proud to be investing in the future of
the company, the region and its people. As the company locates its
expanded corporate headquarters to the SouthSide, we are using our
resources to attract tens of millions of dollars in private sector
investment. Everyday our efforts are focused on creating new
opportunities for our working men and women and building the economic
future of Pennsylvania."
"American Eagle's decision to move its corporate offices into the
City of Pittsburgh is a significant signal of our ability to attract
and retain companies that want to be a part of a dynamic and inviting
place to live and work," said Pittsburgh's Mayor Tom Murphy. "The
company's plans for its new home in Pittsburgh are a crowning
achievement for the successful SouthSide Works development as it
becomes the major corporate anchor of this new city inside the city.
This youthful, vibrant workplace is an amazing transformation from a
site that started with steel and is a shining example of our vision
for the future of Pittsburgh," added Mayor Murphy. The SouthSide Works
development project is named after the former mill site of LTV Steel.
"We are fortunate to have a retail powerhouse like American Eagle
call Allegheny County its home," said Allegheny County Chief Executive
Dan Onorato. "The company's decision to move its headquarters to the
South Side and expand its operations in Marshall Township sends a
strong message that Allegheny County is a great place to do business."
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, and graphic Ts as well as a stylish
assortment of cool accessories, outerwear and footwear. American Eagle
Outfitters currently operates 787 AE stores in 50 states, the District
of Columbia and Puerto Rico, and 71 AE 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" Statement under the Private Securities Litigation
Reform Act of 1995: This release contains forward-looking statements,
which represent our expectations or beliefs concerning future events,
specifically regarding the relocation of our corporate headquarters.
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 satisfaction of purchase agreement conditions, risks
related to construction, possible disruption of business in connection
with the relocation of corporate headquarters and those other risks
described in the Company's filings with the Securities and Exchange
Commission. Accordingly, the Company's future performance and
financial results may differ materially from those expressed or
implied in any such forward-looking statements. 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.
SOURCE: American Eagle Outfitters
American Eagle Outfitters
Judy Meehan, 724-779-6642