ITEM 8.01. Other Events
On February 4, 2013, American Eagle Outfitters, Inc. (the "Company")
issued a press release announcing the mutual termination of its
store license agreement (the "Agreement") with Dickson Concepts
(International) Limited ("Dickson") for Hong Kong, Macau, China and
other designated territories in Asia (the "Territory"). A copy of
this press release is attached hereto as Exhibit 99.1.
Pursuant to an amendment to the Agreement, effective February 4,
2013, the Company will pay Dickson US$10 million to terminate
Dickson's right to open additional stores in the Territory, beyond
the six existing American Eagle Outfitters Stores in Hong Kong and
China ("the Six Stores").
A separate agreement, dated February 4, 2013 (the "Termination
Agreement"), terminates all of Dickson's remaining rights under the
Agreement. Under the Termination Agreement, the Company will acquire
the Six Stores and related assets operated by Dickson. It is
anticipated that the Company will pay Dickson approximately US$11
million under the Termination Agreement, subject to adjustments, and
that this transaction will close, following completion of customary
conditions, in the second or third quarter of 2013. The Company
entered into the Termination Agreement in order to further support
its long-term global expansion strategy.