American Eagle Outfitters (AEO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this teen clothing retailer have returned +19.4% over the past month versus the Zacks S&P 500 composite's +1.5% change. The Zacks Retail - Apparel and Shoes industry, to which American Eagle belongs, has gained 12% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, American Eagle is expected to post earnings of $0.49 per share, indicating a change of -7.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $2.24 points to a change of +49.3% from the prior year. Over the last 30 days, this estimate has changed +3.2%.
For the next fiscal year, the consensus earnings estimate of $1.89 indicates a change of -15.2% from what American Eagle is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for American Eagle.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of American Eagle, the consensus sales estimate of $1.46 billion for the current quarter points to a year-over-year change of +6.8%. The $5.86 billion and $6.07 billion estimates for the current and next fiscal years indicate changes of +6.6% and +3.5%, respectively.
Last Reported Results and Surprise HistoryAmerican Eagle reported revenues of $1.38 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $0.79 for the same period compares with $0.45 a year ago.
Compared to the Zacks Consensus Estimate of $1.37 billion, the reported revenues represent a surprise of +0.99%. The EPS surprise was +276.19%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
American Eagle is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about American Eagle. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
It has been about a month since the last earnings report for American Eagle Outfitters (AEO - Free Report) . Shares have added about 23.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American Eagle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
American Eagle Q2 Earnings Beat Estimates on Tariff RefundsAmerican Eagle posted fiscal second-quarter 2026 earnings of 79 cents per share, up 75.6% year over year and above the Zacks Consensus Estimate of 21 cents. Net revenue rose 7.5% to $1.38 billion and beat the consensus mark of $1.37 billion.
The earnings beat was aided by tariff-refund benefits, while Aerie and OFFLINE momentum supported sales growth. Consolidated comparable sales increased 6%, and American Eagle showed sequential improvement from the first quarter.
AEO's Brand Sales Show Uneven MomentumAerie revenue increased 24.9% year over year to $535.8 million, while comparable sales advanced 19%. Management cited broad-based strength across channels and categories, including core apparel, intimates and activewear. OFFLINE also benefited from demand for Cloud Fleece, sports bras and bottoms.
American Eagle brand revenue rose 0.7% to $805.9 million, but comparable sales declined 1%. Men's delivered its fourth consecutive quarter of positive comps. Women's fashion bottoms and newer denim fits gained traction, though the company is still rebalancing older and seasonal inventory.
American Eagle's Margins Get Refund Boost
Gross profit climbed 34.4% year over year to $672.1 million, while gross margin expanded 980 basis points to 48.7%. A net $179 million tariff-refund benefit in gross profit contributed 1,300 basis points to the margin expansion. Merchandise margins deleveraged 330 basis points, with Aerie improvement offset by American Eagle markdowns.
Selling, general and administrative expenses increased 19.3% to $408.4 million and rose 290 basis points as a percentage of sales to 29.6%.
Operating income rose 105.1% year over year to $211.4 million, while operating margin increased 730 basis points to 15.3%. The quarter included a $161 million net operating-income benefit from tariff refunds.
American Eagle's Balance Sheet Shows Inventory BuildAEO ended the quarter with $148 million in cash and cash equivalents. Total liquidity, including the revolver, was $783 million. Merchandise inventory was $817.9 million, up 13.9% year over year, while units increased 9%. Management said the higher inventory cost included the impact of incremental tariffs.
The company also returned $21 million to shareholders through its quarterly cash dividend of 12.5 cents per share.
American Eagle's Outlook Includes RefundsFor fiscal 2026, the company expects comparable sales to increase in the mid-single digits and gross margin to rise year over year. SG&A expenses are projected to grow in the low-double digits, while depreciation and amortization is expected at about $215 million. Operating income is forecast between $540 million and $550 million, inclusive of tariff-refund benefits.
For the fiscal third quarter, AEO expects comparable sales growth in the mid-to-high single digits. Management sees Aerie and OFFLINE comps in the high teens to 20% range, while American Eagle is expected to be approximately flat.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -12.5% due to these changes.
VGM ScoresCurrently, American Eagle has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, American Eagle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerAmerican Eagle is part of the Zacks Retail - Apparel and Shoes industry. Over the past month, Urban Outfitters (URBN - Free Report) , a stock from the same industry, has gained 7.1%. The company reported its results for the quarter ended July 2026 more than a month ago.
Urban Outfitters reported revenues of $1.66 billion in the last reported quarter, representing a year-over-year change of +10.4%. EPS of $1.72 for the same period compares with $1.58 a year ago.
For the current quarter, Urban Outfitters is expected to post earnings of $1.54 per share, indicating a change of +20.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Urban Outfitters. Also, the stock has a VGM Score of A.
Společnost American Eagle Outfitters má rating Zacks #3 (držet); konsenzuální odhad zisku na akcii (EPS) pro aktuální fiskální rok se za posledních 30 dní zvýšil o 26,9 % na 2,24 USD.
American Eagle Outfitters (AEO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this teen clothing retailer have returned +4.1%, compared to the Zacks S&P 500 composite's +0.8% change. During this period, the Zacks Retail - Apparel and Shoes industry, which American Eagle falls in, has gained 0.1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, American Eagle is expected to post earnings of $0.49 per share, indicating a change of -7.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -12.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $2.24 points to a change of +49.3% from the prior year. Over the last 30 days, this estimate has changed +26.9%.
For the next fiscal year, the consensus earnings estimate of $1.89 indicates a change of -15.2% from what American Eagle is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for American Eagle.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For American Eagle, the consensus sales estimate for the current quarter of $1.46 billion indicates a year-over-year change of +6.8%. For the current and next fiscal years, $5.86 billion and $6.07 billion estimates indicate +6.6% and +3.5% changes, respectively.
Last Reported Results and Surprise HistoryAmerican Eagle reported revenues of $1.38 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $0.79 for the same period compares with $0.45 a year ago.
Compared to the Zacks Consensus Estimate of $1.37 billion, the reported revenues represent a surprise of +0.99%. The EPS surprise was +276.19%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
American Eagle is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about American Eagle. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
American Eagle oznámila 1% růst tržeb značky díky silnému přijetí nových dámských denimových střihů, zejména wide-leg straight a low-rise. Firma zároveň dál snižuje zásoby a přesouvá marketing na podporu konverzí.
Key Takeaways AEO's American Eagle brand sales rose 1% as women responded well to outfitting. bottoms and new denim fits.AEO saw strong acceptance of wide-leg straight and low-rise denim, supporting sequential improvement.AEO is rebalancing inventory and shifting marketing toward conversion while refining its product strategy. American Eagle Outfitters, Inc. (AEO - Free Report) is showing sequential improvement at its American Eagle (AE) brand as it refines its product strategies, with women’s customers responding well to outfitting, fashion bottoms and new denim fits. In the second quarter of fiscal 2026, American Eagle brand sales increased 1%, while the company’s consolidated sales grew 8%. American Eagle saw strong customer acceptance of new women’s denim fits, including wide-leg straight and low-rise styles. However, management indicated that there remains an opportunity to restore consistent growth across categories.
AE’s brand awareness and cultural significance remain strong, while its active customer file continues to grow. These trends provide a broader backdrop as the company works to improve performance across categories and refine its product strategies. Denim has become an area of sequential improvement as American Eagle adjusts its assortment toward better-performing fits.
Management said that new fashion fits, particularly wide-leg straight and low-rise, gained strong customer acceptance. Jennifer Foyle said that the company has seen sequential improvement in denim after pivoting toward the fits that were working, with low-rise becoming a key focus. The repositioned denim assortment also featured in the company’s back-to-school marketing launch.
The broader outlook indicates that denim performance is improving alongside broader efforts to strengthen the business. The company is focusing on product strategy, traffic and conversion. Marketing is shifting toward conversion-focused spending, alongside continued efforts to rebalance inventory and work through older and seasonal merchandise.
However, management indicated that further work remains. AE is still working through older denim fits and rebalancing inventory, while women’s bottoms have improved but remain mixed. Pants and cargoes have performed exceptionally well, although the company still has work to do to rebalance denim. Overall, American Eagle’s new denim fits are gaining customer acceptance, with sequential improvement in denim. Management continues to see opportunities to improve performance and rebalance inventory.
The Zacks Rundown for AEOAEO’s shares have declined 2.4% in the past six months compared with the industry’s decline of 13%. The company currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
From a valuation standpoint, AEO trades at a forward price-to-earnings ratio of 7.98X, lower than the industry’s average 11.90X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AEO’s current fiscal year earnings implies 44.7% year-over-year growth, while the same for next fiscal year earnings implies a 12.4% year-over-year decline.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
FIGS, Inc. (FIGS - Free Report) operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. At present, FIGS carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’s current fiscal-year sales and earnings implies growth of 19.7% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.
Boot Barn Holdings, Inc. (BOOT - Free Report) operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.8% and 23.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
Nykredit A S purchased a new position in shares of American Eagle Outfitters, Inc. (NYSE:AEO – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 1,933,310 shares of the apparel retailer’s stock, valued at approximately $33,253,000. Nykredit A S owned approximately 1.15% of American Eagle Outfitters as of its most recent filing with the Securities and Exchange Commission (SEC).
Other large investors have also modified their holdings of the company. Plato Investment Management Ltd acquired a new stake in American Eagle Outfitters during the 2nd quarter worth approximately $25,000. Allworth Financial LP purchased a new stake in shares of American Eagle Outfitters during the 2nd quarter valued at about $36,000. EverSource Wealth Advisors LLC lifted its position in American Eagle Outfitters by 31.9% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,870 shares of the apparel retailer’s stock worth $48,000 after acquiring an additional 694 shares in the last quarter. Quantbot Technologies LP acquired a new position in shares of American Eagle Outfitters during the second quarter worth $57,000. Finally, Parkside Financial Bank & Trust boosted its stake in shares of American Eagle Outfitters by 772.7% in the second quarter. Parkside Financial Bank & Trust now owns 3,997 shares of the apparel retailer’s stock valued at $69,000 after purchasing an additional 3,539 shares during the period. 97.33% of the stock is currently owned by hedge funds and other institutional investors.
American Eagle Outfitters Trading Up 0.9% American Eagle Outfitters stock opened at $15.04 on Friday. The company has a market cap of $2.52 billion, a P/E ratio of 7.67, a PEG ratio of 3.51 and a beta of 1.33. The firm’s 50-day moving average is $16.78 and its 200-day moving average is $17.21. American Eagle Outfitters, Inc. has a 1 year low of $14.06 and a 1 year high of $28.46. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.62 and a current ratio of 1.59.
American Eagle Outfitters (NYSE:AEO – Get Free Report) last announced its quarterly earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.57. American Eagle Outfitters had a return on equity of 23.63% and a net margin of 5.91%.The business had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.37 billion. During the same period in the prior year, the firm earned $0.45 EPS. The business’s quarterly revenue was up 7.5% on a year-over-year basis. On average, equities analysts expect that American Eagle Outfitters, Inc. will post 2.17 earnings per share for the current year. American Eagle Outfitters Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Friday, October 9th will be paid a $0.125 dividend. The ex-dividend date is Friday, October 9th. This represents a $0.50 annualized dividend and a dividend yield of 3.3%. American Eagle Outfitters’s dividend payout ratio (DPR) is presently 25.51%.
Insider Activity at American Eagle Outfitters In other news, Director Noel Spiegel sold 2,892 shares of the company’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $16.78, for a total value of $48,527.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David M. Sable sold 5,779 shares of the business’s stock in a transaction on Friday, July 17th. The stock was sold at an average price of $17.23, for a total value of $99,572.17. Following the sale, the director directly owned 53,481 shares in the company, valued at $921,477.63. This trade represents a 9.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,563 shares of company stock worth $196,599 over the last ninety days. 8.95% of the stock is currently owned by corporate insiders.
Analyst Ratings Changes A number of research firms recently weighed in on AEO. UBS Group lowered their price target on shares of American Eagle Outfitters from $31.00 to $27.00 and set a “buy” rating for the company in a report on Thursday, September 10th. Citigroup lowered their target price on American Eagle Outfitters from $24.00 to $18.00 and set a “neutral” rating for the company in a research note on Monday, June 1st. JPMorgan Chase & Co. lifted their target price on American Eagle Outfitters from $19.00 to $21.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 18th. Barclays lowered their price objective on American Eagle Outfitters from $17.00 to $15.00 and set an “equal weight” rating for the company in a research note on Thursday, September 10th. Finally, Bank of America reissued an “underperform” rating and set a $16.00 price target on shares of American Eagle Outfitters in a research report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $19.36.
Get Our Latest Analysis on AEO
(Free Report)
American Eagle Outfitters, Inc (NYSE:AEO) is a specialty retailer offering casual apparel, accessories and footwear for young women and men. Its product assortment includes jeans, tops, dresses, intimates, loungewear and activewear, with merchandise sold through company-operated stores and digital channels.
The company’s principal brands include American Eagle, which focuses on casual lifestyle clothing and denim, and Aerie, which offers intimates, activewear and loungewear. Its brand portfolio has also included OFFLINE by Aerie, a performance and wellness-oriented line, and Todd Snyder, a menswear brand known for elevated casual clothing and tailoring.
Founded in 1977, American Eagle Outfitters is headquartered in Pittsburgh, Pennsylvania.
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Aerie ve 2. čtvrtletí zvýšila srovnatelné tržby o 19 % a tržby Aerie a OFFLINE vzrostly o 25 %. American Eagle Outfitters očekává za fiskální rok 2026 růst srovnatelných tržeb v nižších jednotkách procent a provozní výsledek 540–550 milionů USD.
Key Takeaways Aerie comps rose 19% in Q2, while Aerie and OFFLINE revenues jumped 25%.AEO is improving American Eagle's product execution as men's posted a fourth straight growth quarter.AEO expects mid-single-digit fiscal 2026 comp growth and $540-$550 million in operating income. American Eagle Outfitters, Inc. (AEO - Free Report) continues to execute strategic initiatives aimed at driving sustainable growth, strengthening its brands, improving operational efficiency and enhancing profitability. The company is investing in its brands, digital capabilities and customer experience while focusing on disciplined execution and cost optimization.
Aerie remains a key growth engine for AEO, with strong momentum continuing into fiscal 2026. The brand is benefiting from compelling product assortments, stronger brand awareness and deeper customer engagement. In the second quarter of fiscal 2026, Aerie comparable sales increased 19%, while Aerie and OFFLINE combined revenues jumped 25%. The company is focused on expanding Aerie's reach, strengthening its emotional connection with customers and using marketing and product innovation to attract consumers.
AEO is also working to reignite growth at its namesake American Eagle brand. American Eagle comps declined 1% in the second quarter, an improvement from the 2% decline in the first quarter. Management is focused on improving product execution, particularly in women's, while continuing to build momentum in men's, which recorded its fourth consecutive quarter of growth in the second quarter.
The company continues to invest in its store and digital channels to improve customer engagement and support long-term growth. The company is emphasizing productivity and optimizing its store footprint rather than pursuing broad-based expansion. Capital expenditures for fiscal 2026 are expected to be approximately $250-$260 million.
AEO enters the second half of fiscal 2026 with continued momentum, particularly at Aerie and OFFLINE, while efforts to improve American Eagle remain underway. For the fiscal third quarter, management expects comparable sales to increase in the mid-to-high single digits and projects fiscal 2026 comparable sales growth in the mid-single digits. The company currently expects fiscal 2026 operating income of $540-$550 million, including the benefit from tariff refunds. The company has also been addressing tariff exposure through refunds, sourcing actions and other mitigation efforts.
AEO’s Price Performance, Valuation and EstimatesAmerican Eagle’s shares have lost 16.2% in the past three months compared with the industry’s 17% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, AEO trades at a forward price-to-earnings ratio of 7.64X compared with the industry’s average of 11.84X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AEO’s fiscal 2026 earnings per share (EPS) indicates year-over-year growth of 44.7% while that of fiscal 2027 shows a decline of 12.5%. The company’s EPS estimate for fiscal 2026 and fiscal 2026 has been stable in the past 30 days.
Image Source: Zacks Investment Research
American Eagle currently carries a Zacks Rank #3 (Hold).
Eye These Solid Picks in RetailFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 19.7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 23.5% and 15.8%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.
Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered an earnings surprise of 55.2% in the last reported quarter.
PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters, Inc. (NYSE: AEO) announced a quarterly cash dividend of $0.125 per share. The dividend was declared on September 15, 2026 and is payable on October 28, 2026 to stockholders of record at the close of business on October 9, 2026.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer with a portfolio of beloved apparel brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed. Rooted in optimism, inclusivity and authenticity, AEO’s brands empower every customer to celebrate their unique personal style by offering casual, comfortable, timeless outfitting and high-quality products that are made to last.
AEO Inc. operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through a global network of license partners. Additionally, the company operates a robust e-commerce business across its brands. For more information, visit aeo-inc.com.
American Eagle Outfitters po čtvrtletních výsledcích klesl na 11měsíční minimum; Aerie zůstává silná, ale analytik Needhamu je dál v režimu „vyčkáme a uvidíme“. Akcie AEO jsou dnes dole o 13,2 % na 14,64 USD.
American Eagle Outfitters (NYSE:AEO) stock hit 11-month lows on Thursday after reporting quarterly financial results after Wednesday’s market closed.
Needham analyst Tom Nikic remains cautiously neutral, maintaining a Hold rating on the stock with no price target.
American Eagle: Mixed BagThe apparel company’s intimate line, Aerie, remains the highlight, Nikic said.
"AEO remains a tale of two brands, with Aerie remaining red-hot, but the larger American Eagle brand is still a bit of a mixed bag," Nikic said.
The analyst said the company will face tougher comparable sales in the second half of the fiscal year, alongside a "volatile macro environment."
"We remain in wait-and-see mode here,” he added.
Second-quarter results showed earnings per share beating estimates, with tariff refunds providing an estimated 50-cent-per-share benefit — a net gross of $179 million and a $161 million net operating income benefit.
But American Eagle’s earnings per share would still have beaten estimates without the refund. The company also beat analyst estimates for revenue.
Aerie is the Big PositiveNikic highlighted poor results from the women’s segment of the American Eagle brand, particularly with pants and shorts.
The positives in the quarter were the American Eagle brand men’s segment posting its fourth straight quarter of positive comps and the Aerie brand posting 19% comp growth year-over-year.
Nikic said the Pittsburgh-based company’s real test could be the upcoming Aerie comps in the third and fourth quarters.
"Aerie is one of the strongest growth stories in retail at the moment, but it faces difficult compares, and the outlook for the core American Eagle brand is unclear."
Price ActionAEO shares are down 13.2% to $14.64 on Thursday. The stock hit an intraday low of $14.14, nearing the 52-week low of $14.06 set back on Oct. 10.
The Jay Schottenstein-led company’s stock is down 44% year to date in 2026.
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Macy’s překonala odhady zisku i tržeb a zvýšila celoroční výhled, zatímco American Eagle sice překonal EPS, ale zklamal u srovnatelných tržeb. Trh poslal Macy’s během dne o 3,65 % dolů a American Eagle o 13,77 %.
Macy's and American Eagle both reported earnings within hours of each other, both got punished by the market, and yet only one of them belongs anywhere near a retirement portfolio. The reasons why will surprise you.
Two struggling apparel retailers reported within hours of each other, both got sold, and now retirement-focused investors have to answer a plain question: own Macy’s (NYSE:M | M Price Prediction) or American Eagle Outfitters (NYSE:AEO) here, or neither? Macy’s beat on the top and bottom line and raised full-year guidance. American Eagle beat headline EPS but missed on the metric that matters, comparable sales at its namesake brand. The market punished both, sending Macy’s down 3.65% intraday and American Eagle down 13.77%. That reaction is the whole story, and it tells you which name a conservative income investor should actually be looking at.
Quality of the Quarter: Macy’s, Decisively Macy’s put up adjusted EPS of $0.63 versus $0.36 consensus, its 10th consecutive EPS beat, on comparable sales up 2.7% across all three nameplates, a fifth straight quarter of positive comps. Bloomingdale’s comps rose 11.3%, Bluemercury 6.2%, and the Reimagine 200 stores 1.9%. Gross margin expanded 180 basis points to 41.5%. A $98 million IEEPA tariff refund flattered the numbers, with roughly $96 million being reinvested into the strategy rather than flowing through to the bottom line.
American Eagle’s reported $0.79 EPS versus $0.21 consensus flatters a weaker underlying quarter. The number was inflated by a $161 million net tariff refund benefit included in operating profit. Strip that out and the underlying story is that revenue beat by only 0.89%, the American Eagle brand posted a 1% comparable sales decline, merchandise margins deleveraged 330 basis points, and inventory rose 14%. Aerie and OFFLINE remain excellent, with 25% revenue growth and 19% comps, but the flagship brand is shrinking. Winner: Macy’s.
Yield and Income Durability: Macy’s Again Macy’s pays a quarterly dividend of $0.1915, following a 5% increase earlier in FY2026, for a trailing yield of roughly 3.29%. It backs the payout with $1.43 billion of operating cash flow and $797 million of free cash flow in FY2026, plus roughly $1.0 billion remaining under its $2.0 billion buyback authorization. American Eagle pays $0.125 quarterly, a 2.9% yield, with a much smaller cash cushion of $148 million at quarter-end. For a retiree, Macy’s offers a bigger yield, a recent hike, and a coverage profile supported by cash flow across all three nameplates rather than a single growth engine. Winner: Macy’s.
Valuation Versus Own History: American Eagle This is the only dimension American Eagle wins, and it wins on pain. AEO trades at 11x trailing and 12x forward earnings after falling 43.7% year-to-date and 37.8% over five years. Its 50-day moving average of $17.03 sits well above the current $14.57. Analysts still carry a $19.55 target, but the rating skew is 11 holds, one buy, and a strong sell. Macy’s, at 9x trailing and 10x forward, is optically cheaper on multiple, but it’s actually up 24.98% over one year and has clawed back to only 4.19% below year-end. AEO is more washed out relative to its own trend. Winner: American Eagle, on price alone.
Verdict: Macy’s for the Retiree, AEO for the Contrarian, Neither on Autopilot For a retirement-focused investor, Macy’s screens as the stronger candidate. It offers the higher yield, a recently raised payout, real free cash flow, no debt maturities until 2030, and a business where every nameplate is comping positive. The Bold New Chapter strategy cited by management is producing measurable results across the store base. AEO is a trade for someone who believes Aerie can carry a shrinking American Eagle brand through a tariff-heavy back half at assumed 15% H2 rates, with markdowns already baked into third-quarter guidance. That profile fits a speculative trade rather than a retirement allocation. Macy’s screens better on income durability, while AEO’s yield carries meaningfully more risk (the same set of red flags we cataloged in a free guide to dividend traps).
Contact [email protected] for any questions or corrections.
Akcie American Eagle Outfitters klesly před otevřením trhu o více než 11 % po výhledu na stabilní hrubou marži za čtvrtletí. Slabost hlavní značky přebila lepší tržby za 2. čtvrtletí.
American Eagle Outfitters' (AEO.N) shares slumped over 11% in premarket trading on Thursday, following a flat quarterly gross-margin forecast as persistent softness at the company's core brands outweighed a second-quarter revenue beat.
Demand across the apparel sector has been uneven as consumers grappling with inflation prioritize essentials and wait for promotions — a backdrop contributing to a roughly 36% decline in the company's shares this year.
Executives said on Wednesday that the brand was still trying to clear older inventory through discounts after a sharp shift in fashion trends left some merchandise out of step with consumer demand.
Inventory costs climbed 14% from a year earlier in the quarter ended August 1, including costs related to incremental tariffs.
"Earnings power is unlikely to improve and low valuation remains justified by several overhangs, including elevated inventory levels and Aerie's ability to sustain recent momentum," said analysts at Morgan Stanley.
Revenue for the second quarter surpassed analysts' estimates, as growth at Aerie — the company's women's intimates and activewear brand — helped offset softness at the namesake brand.
The company expects current-quarter gross margin to be flat from a year earlier and forecasts mid-single digit growth in fiscal 2026 comparable sales.
The stock's forward price-to-earnings multiple, a common benchmark for valuing stocks, is 9.38, compared to peers Abercrombie's (ANF.N) 11.47 and Gap's (GAP.N) 8.91.
American Eagle, like several apparel peers, has turned to celebrity partnerships such as the "Great Jeans" campaign with actor Sydney Sweeney to capture spending from wealthier Gen Z consumers, even as inflation squeezes lower- and middle-income households.
Na konferenčním hovoru k výsledkům za 2. čtvrtletí 2026 AEO uvedla své vedení včetně Jay Schottensteina, Executive Chairman a CEO, a Raviho Thanawaly, CFO.
American Eagle Outfitters, Inc. (AEO) Q2 2026 Earnings Call September 9, 2026 4:30 PM EDT
Company Participants
Alexis Tragos - Vice President of Corporate Communications
Jay Schottenstein - Executive Chairman of the Board & CEO
Ravi Thanawala - Executive VP & CFO
Jennifer Foyle - President and Executive Creative Director of AE & Aerie
Mike Mathias - Full-Time Non-Executive Strategic Advisor
Conference Call Participants
Jay Sole - UBS Investment Bank, Research Division
Amanda Douglas - JPMorgan Chase & Co, Research Division
Kelly Crago
Jonathan Keypour - Goldman Sachs Group, Inc., Research Division
Dana Telsey - Telsey Advisory Group LLC
Jungwon Kim - TD Cowen, Research Division
Angus Kelleher-Ferguson - Barclays Bank PLC, Research Division
Rakesh Patel - Raymond James & Associates, Inc., Research Division
Alexandra Straton - Morgan Stanley, Research Division
Marni Shapiro - The Retail Tracker
Presentation
Operator
Good afternoon, everyone. Welcome to the AEO Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Alexis Tragos, Vice President of Corporate Communications. Please go ahead.
Alexis Tragos
Vice President of Corporate Communications
Good afternoon, everyone. Joining me today for our prepared remarks are Jay Schottenstein, Executive Chairman and Chief Executive Officer; Jen Foyle, President, Executive Creative Director for American Eagle and Aerie; Ravi Thanawala, Chief Financial Officer; and Mike Mathias, Strategic Adviser.
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. You can find our second quarter investor presentation on our corporate website at www.aeo-inc.com
American Eagle Outfitters ve 2. čtvrtletí zvýšil tržby o 8 % na 1,4 miliardy USD a provozní zisk na 211 milionů USD, hlavně díky Aerie a refundacím cel.
Victoria’s Secret’s Comeback Is Real—The Stock’s Problem Is DifferentAmerican Eagle Outfitters NYSE: AEO reported second-quarter revenue and operating income at the high end of its expectations, aided by continued rapid growth at its Aerie and OFFLINE businesses and a substantial benefit from tariff refunds.
Consolidated revenue rose 8% year over year to $1.4 billion, while comparable sales increased 6%. Operating income reached $211 million, compared with $103 million a year earlier. The result included a net $161 million benefit from tariff refunds, the company said.
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Abercrombie’s Comeback Is a Work in ProgressExecutive Chairman and Chief Executive Officer Jay Schottenstein said the quarter represented “another important step forward” for the retailer. He pointed to progress at the American Eagle banner and what he described as outstanding performance at Aerie.
Aerie Leads Growth Aerie, including the OFFLINE activewear business, generated $536 million in revenue, a 25% increase from the prior year. Comparable sales climbed 19%, with growth across channels and product categories.
MarketBeat Week in Review – 06/15 - 06/19Jen Foyle, president and executive creative director for American Eagle and Aerie, said demand was broad-based across core apparel, intimates and activewear. She highlighted customer response to tees, tanks, fleece, bottoms, sleep-to-street products and seasonal assortments, as well as OFFLINE’s Cloud Fleece franchise and sports bras.
Foyle said Aerie’s core intimates business remained strong, supported by its focus on comfort and fabrication. The brand introduced its Float bra collection in July, which she said complements Aerie’s structured bra assortment. The company also nearly doubled the size of its Advocate program during the quarter as it sought to expand customer engagement.
Management said Aerie entered the third quarter maintaining momentum against more difficult comparisons. The company expects Aerie and OFFLINE comparable-sales growth in the high-teens to 20% range during the third quarter.
Foyle said Aerie has room to expand awareness, noting that the brand’s awareness level was about 59%, compared with roughly 76% for American Eagle. She said the company is using store events, digital spending, Aerie Realmakers and its advocacy program to build the customer community.
American Eagle Improves, but Inventory Work Continues American Eagle revenue increased 1% during the second quarter, while comparable sales declined 1%. The result marked a sequential improvement from the first quarter, according to management.
The men’s business posted its fourth consecutive quarter of positive comparable sales, driven by strength across bottoms categories. In women’s, the company cited favorable response to outfitting strategies, including tiny tops paired with oversized bottoms, as well as cargo styles and fashion bottoms.
Foyle said new denim fits, including wide-leg, straight and low-rise styles, gained customer acceptance. She said the retailer had pivoted its denim offering toward working fits, particularly low-rise styles, but continues to rebalance inventory in older fits.
Management said remaining American Eagle inventory cleanup is primarily concentrated in seasonal merchandise, particularly shorts, along with some fashion products. The company expects some markdown pressure at the banner to continue in the third quarter as it works through that inventory.
For the third quarter, American Eagle expects comparable sales to be approximately flat. Mike Mathias, the company’s strategic advisor, said stores remain below the banner’s overall trend, while digital performance has been stronger. However, store performance has improved so far in the third quarter, particularly during the back-to-school period.
The company has spent the past four quarters investing in brand awareness and now plans to shift more marketing dollars toward conversion-oriented tactics. Management said traffic, store conversion and product strategies will be key measures as it works to return American Eagle to sustained growth.
Margins Reflect Tariff Refunds and Brand Differences Gross profit increased 34% to $672 million, and gross margin expanded 980 basis points to 48.7%. The company said tariff refunds produced a $179 million gross-profit benefit and accounted for 1,300 basis points of gross-margin expansion.
Merchandise margins declined 330 basis points, as improvement at Aerie was offset by markdowns at American Eagle. Selling, general and administrative expense rose 19% to 29.6% of sales, including $18 million of incentive expense tied to tariff refunds. The remaining increase primarily reflected planned advertising investments.
Second-quarter earnings per share were $0.79. Inventory cost increased 14%, while inventory units rose 9%. Capital expenditures totaled $66 million during the quarter. The company returned $21 million to shareholders through its quarterly dividend. American Eagle ended the quarter with approximately $148 million in cash and investments and total liquidity of $783 million, including its revolver. Outlook and Leadership Transition For the third quarter, the company expects consolidated comparable-sales growth in the mid- to high-single digits and operating income of $110 million to $115 million. Gross margin is expected to be similar to the prior year, while SG&A expense is projected to increase in the high-single digits.
For the full year, American Eagle forecast operating income of $540 million to $550 million, based on consolidated comparable-sales growth in the mid-single digits. The company expects full-year gross margin to increase year over year.
Mathias said the updated outlook reflects a flatter sales expectation for American Eagle in the second half than previously anticipated, along with markdown provisions for inventory rebalancing. Aerie is expected to remain a major growth contributor.
The call also marked the transition of the chief financial officer role to Ravi Thanawala, who said he had spent his first weeks at the company listening and learning about the business. Thanawala said his priorities include connecting brand growth with disciplined execution, stronger profitability and thoughtful resource allocation. Mathias, who reviewed the quarter’s financial results and outlook, will continue as a strategic advisor.
About American Eagle Outfitters (NYSE:AEO)American Eagle Outfitters, Inc NYSE: AEO is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company's flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.
American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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American Eagle Outfitters zopakoval celoroční výhled srovnatelných tržeb a zvýšil cíl provozního zisku po započtení 196 milionů USD z celních refundací. Tržby za čtvrtletí činily 1,38 miliardy USD, nad odhadem 1,37 miliardy USD.
American Eagle Outfitters (AEO.N) reiterated its annual comparable sales forecast on Wednesday, as consumers pulled back on spending on discretionary items including apparel.
Shares fell about 10% in extended trading.
Demand for apparel has remained uneven as inflationary pressures and macroeconomic uncertainty prompt shoppers to focus on essentials such as gas and groceries and wait for promotions before buying clothing and accessories.
American Eagle, like peers such as Gap, has been navigating challenges including weakness in certain seasonal categories in the last few months.
American Eagle posted quarterly revenue of $1.38 billion, above analysts' estimates of $1.37 billion, according to data compiled by LSEG.
The company reiterated its annual comparable sales forecast for the second time and raised its operating income target after including the impact of $196 million in tariff refunds received during the second quarter.
American Eagle still expects fiscal 2026 comparable sales to be up mid-single-digits. It sees operating income in the range of $540 million to $550 million, compared with a prior range of $390 million to $410 million.
American Eagle vyhlíží výsledky za 2. čtvrtletí; analytici čekají tržby 1,37 miliardy USD a zisk 22 centů na akcii. Pomoci mohou spolupráce se Sydney Sweeney, Ella Langley a kolekcí „Off Campus“.
Apparel retailer American Eagle Outfitters Inc (NYSE:AEO) wants to show a rebound in financials to get shares back to 2026 highs. The company will report second-quarter financial results Wednesday after market close.
Here are the earnings estimates, analyst ratings and key items to watch.
• How is AEO stock doing today?
American Eagle Q2 Earnings EstimatesAnalysts expect American Eagle to report second-quarter revenue of $1.37 billion, up from $1.28 billion in last year’s second quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in four straight quarters and in six of the past 10 quarters overall.
Analysts expect American Eagle to report second-quarter earnings of 22 cents per share, down from 45 cents per share in last year’s second quarter.
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The company has beaten analyst estimates for earnings per share in four straight quarters and in eight of the past 10 quarters.
American Eagle Analyst RatingsHere are some of the most recent analyst ratings on American Eagle stock and their price targets.
JPMorgan: Maintained Neutral rating, raised price target from $19 to $21
Bank of America Securities: Reiterates Underperform rating with a price target of $16
Key Items to WatchIt’s been a mixed year for American Eagle, which is one of the key players in teen and young adult apparel. The stock hit new five-year highs back in December with a key rally, as well as a rally in April 2026.
Some of the reason for the rally was a new advertising campaign with actress Sydney Sweeney. A partnership with Sweeney continues with new merchandise launched in April that could contribute to second-quarter strength, with the quarter beginning on May 3.
Also likely being a factor in the second quarter is American Eagle’s partnership with country superstar Ella Langley. The country star partnered with American Eagle for spring and summer collections.
Langley set records this year with her new album and single "Choosin’ Texas," which spent 20 straight non-holiday weeks at number one on the Billboard Hot 100.
Also potentially helping American Eagle in the quarter is the retailer’s merchandise for "Off Campus," a hit series on Amazon.com Inc (NASDAQ:AMZN) streaming platform Prime Video. The series had the third-largest debut on the platform ever and holds some of the strongest ratings in the 18-34 demographic, which is also a key for the retailer.
Investors looking towards American Eagle’s potential summer earnings strength may want to take a look at the recent results from Abercrombie & Fitch Co. (NYSE:ANF), a peer in the teen and young adult apparel retail sector.
The retailer’s second quarter, which included the months of June, July and August, saw revenue and earnings per share that beat analyst estimates. The company also raised its full-year outlook after the quarterly results.
That report may signal strength for the sector and put pressure on American Eagle to report a strong quarterly result and raise guidance.
American Eagle shares fell after the last quarterly results. The company posted a double beat in the first quarter, but higher inventory and a comp decline for the American Eagle brand sent shares lower.
American Eagle Stock Price ActionAmerican Eagle stock is down 1.24% to $17.18 on Tuesday versus a 52-week trading range of $14.06 to $28.46. American Eagle shares are down 35.1% year-to-date in 2026 and down around 40% from their 52-week high.
American Eagle Outfitters (AEO - Free Report) closed at $16.69 in the latest trading session, marking a -1.07% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.66%.
Heading into today, shares of the teen clothing retailer had lost 5.06% over the past month, lagging the Retail-Wholesale sector's gain of 6.06% and the S&P 500's gain of 3.34%.
The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.21, reflecting a 53.33% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.37 billion, reflecting a 6.48% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $5.81 billion, representing changes of +17.33% and +5.66%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. American Eagle Outfitters is currently a Zacks Rank #2 (Buy).
Looking at valuation, American Eagle Outfitters is presently trading at a Forward P/E ratio of 9.58. Its industry sports an average Forward P/E of 15.59, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.
It is also worth noting that AEO currently has a PEG ratio of 3.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.21 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Key Takeaways American Eagle's Q2 revenues are expected to rise 6.8% to $1.37B, while EPS is seen falling 53.3%.Aerie and OFFLINE momentum, fresh assortments and stronger engagement are expected to support demand.Tariffs, markdowns on women's bottoms and higher ad spending may weigh on second-quarter profitability. American Eagle Outfitters, Inc. (AEO - Free Report) is expected to register growth in its top line when it reports second-quarter fiscal 2026 results on Sept. 9, after market close. The Zacks Consensus Estimate for revenues is pegged at $1.37 billion, which indicates a rise of 6.5% from the year-ago figure.
The consensus estimate for quarterly earnings is pegged at 21 cents per share, indicating a 53.3% decline from the year-ago quarter's number. However, the consensus estimate for earnings has remained stable in the past 30 days.
The company’s earnings beat the consensus estimate by 27.3% in the last reported quarter. AEO delivered an earnings surprise of 48.6% in the trailing four quarters, on average.
Things to Know About AEO’s Upcoming ResultsAEO’s second-quarter performance is likely to have benefited from continued momentum at Aerie and OFFLINE, supported by healthy demand across product categories and selling channels. Aerie’s strength appears to be broad-based, reflecting compelling assortments, stronger brand visibility and deep customer engagement. The brand’s head-to-toe merchandising approach across intimates, sleepwear and apparel has also encouraged customers to build complete outfits, while disciplined promotions and targeted pricing strategies have supported healthier selling trends. OFFLINE has remained another important growth driver, with customers responding well to fresh silhouettes, coordinated sets, new fabrications and curated product drops.
At the American Eagle brand, improving trends in several categories may also have supported the quarter. Men’s apparel has maintained momentum across tops and bottoms, while women’s fashion tops and tees have continued to attract customers. Management also noted encouraging signs of improvement in the women’s business as the quarter progressed, aided by quick merchandising adjustments and a sharper focus on styles and fits showing stronger demand. The company’s ability to chase winning products and introduce fresh assortments could have helped it respond more effectively to changing customer preferences during the summer selling period.
AEO’s elevated marketing efforts and customer-engagement initiatives are another factor likely to have aided demand. Across American Eagle and Aerie, the company has been investing in campaigns, influencer programs, creator communities and entertainment partnerships designed to strengthen brand awareness and attract both new and existing customers. American Eagle has also been shifting its focus toward improving conversion, while digital engagement showed encouraging momentum heading into the quarter. Meanwhile, the opening of the company’s new West Coast distribution center should support better inventory placement and fulfillment flexibility, strengthening AEO’s ability to serve demand across stores and digital channels.
Nevertheless, several pressures may have weighed on second-quarter profitability. American Eagle entered the period with softness in women’s bottoms, particularly denim, and management expected additional markdown activity as it worked to clear less productive merchandise and improve inventory quality ahead of the key back-to-school season. Tariffs also represented a meaningful cost headwind compared with the prior year, while continued spending on advertising was expected to increase operating expenses. In addition, management acknowledged a competitive and fluid retail environment, making disciplined execution, product relevance and effective promotional management especially important for preserving margins.
Our model predicts second-quarter fiscal 2026 total revenues to increase 6.2% year over year. We expect sales for the American Eagle brand to decline 1%. Sales for the Aerie brand are expected to increase by 19.4%.
What the Zacks Model Unveils for AEOOur proven model does not conclusively predict an earnings beat for American Eagle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.
American Eagle currently has an Earnings ESP of -4.00% and a Zacks Rank of 2. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
AEO’s Valuation Picture & Price PerformanceWith a forward 12-month price-to-earnings ratio of 9.55X, below the high level of 18.29X and the Retail - Apparel and Shoes industry’s average of 13.05X, the stock offers compelling value for investors seeking exposure to the sector.
Image Source: Zacks Investment Research
AEO stock has lost 21.9% in the past six months compared with the industry’s 17.5% decline.
Image Source: Zacks Investment Research
Stocks With the Favorable CombinationHere are three companies, which, according to our model, have the right combination of elements to post an earnings beat this season:
Victoria's Secret (VSXY - Free Report) has an Earnings ESP of +5.20% and currently sports a Zacks Rank of 1. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.
Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $94.46 billion, indicating a 9.6% rise from the figure reported in the prior-year quarter.
The consensus estimate for Costco’s earnings is pegged at $6.51 per share, implying 10.9% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1%, on average.
Deckers Outdoors Corporation (DECK - Free Report) currently has an Earnings ESP of +1.60% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $1.5 billion, indicating a 5.6% rise from the figure reported in the prior-year quarter.
The consensus estimate for Costco’s earnings is pegged at $1.8 per share, implying a 1.1% decline from the year-ago quarter. DECK delivered a trailing four-quarter earnings surprise of 15.2%, on average.
American Eagle Outfitters spustila komunitu tvůrců AE a TikTok Shop, aby proměnila silné zapojení v růst podnikání. Nový influencer program Aerie překonal očekávání a podpořil získávání i retenci zákazníků.
Key Takeaways AEO saw strong engagement with marketing initiatives and launched a creator community and TikTok Shop.Aerie's new influencer program exceeded expectations, while customer acquisition and retention strengthened.AEO is focusing on creator-led initiatives to convert stronger engagement and awareness into business. American Eagle Outfitters, Inc. (AEO - Free Report) continued to see strong customer engagement with AEO’s marketing initiatives and partnerships, with particularly strong engagement during several periods in the first quarter of 2026. Management said the brand continues to benefit from strong customer loyalty and affection, helping keep American Eagle top of mind among its core customers. More recently, the company introduced the AE creator community and launched a dedicated TikTok Shop to engage customers in a more relevant and immediate way.
Aerie’s new influencer program also exceeded management’s expectations within its first three weeks and resonated strongly with the brand’s customer community. The company said it plans to continue building on the early success of its influencer initiatives. Aerie also continued to see strength in new customer acquisition and retention, with management stating that its new customer acquisition metric was up by roughly $1 million. Management also highlighted rising customer retention and the brand’s strong emotional connection with its community.
The company said its new influencer initiatives at both AE and Aerie exceeded expectations, with customers actively engaging with the brands and promoting them. To further develop the AE program, the company made a strategic hire to help advance the initiative. In addition, AE announced Lamine Yamal as part of its upcoming brand initiatives, with management expressing enthusiasm about his launch and describing him as a strong fit for the brand.
Overall, American Eagle’s creator-led and social commerce initiatives are designed to deepen customer engagement and make the brand more relevant and immediate for consumers. As the company continues to invest in these initiatives, management is also placing greater emphasis on converting customer engagement and marketing awareness into stronger business performance.
The Zacks Rundown for AEOAEO’s shares have gained 33.5% in the past year against the industry’s decline of 6.9%. The company currently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
From a valuation standpoint, AEO trades at a forward price-to-earnings ratio of 9.55X, lower than the industry’s average 13.05X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AEO’s current fiscal year earnings implies a year-over-year decline of 17.3%, and the same for next fiscal year earnings implies a year-over-year rise of nearly 8%.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks have been discussed below:
FIGS, Inc. (FIGS - Free Report) operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for FIGS’ current fiscal-year sales and earnings implies growth of 18.2% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets and distributes consumer fashion accessories in the United States, Europe, Asia and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the consensus mark for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.
Boot Barn Holdings, Inc. (BOOT - Free Report) operates specialty retail stores in the United States and internationally. Boot Barn currently carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.6%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
American Eagle Outfitters za posledních šest měsíců klesl o 35,1 % kvůli vyšším nákladům, clům a slabší poptávce po dámských kalhotách. Firma dál investuje do digitálního marketingu, TikTok Shopu a dodavatelského řetězce.
Key Takeaways American Eagle faces higher SG&A, tariff costs and weaker demand for women's bottoms.AEO is investing in digital marketing, TikTok Shop and supply chain to drive customer growth.AEO trades below its historical and industry forward P/E despite ongoing execution efforts. American Eagle Outfitters, Inc. (AEO - Free Report) , a prominent player in the retail apparel and shoes sector, has seen its shares plunge 35.1% in the past six months, underperforming the Zacks industry’s decline of 7.8%. The stock has also underperformed the broader sector’s 1.4% decline and the S&P 500 Index’s 9.5% increase in the same period.
AEO Stock’s 6-Month Performance
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In the same period, American Eagle has trailed the performance of Tapestry, Inc. (TPR - Free Report) , Fossil Group, Inc. (FOSL - Free Report) and Urban Outfitters, Inc. (URBN - Free Report) . Shares of TPR and FOSL have gained 11.6% and 11%, respectively, in the past six months, while shares of URBN have lost 6.6%.
AEO’s Share Price Performance VS Peers
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AEO Stock Falls on Rising Costs & Macroeconomic UncertaintyAmerican Eagle faces several near-term headwinds stemming from a challenging macroeconomic environment, rising operating costs and tariff-related uncertainty. The company continued to experience cost pressures in the first quarter of fiscal 2026, with SG&A expenses increasing 11% due to planned advertising investments. Interest expense also increased following a transaction involving the sale of a portion of its tariff claims.
Looking ahead, management expects growth of the SG&A expenses to accelerate to the mid-teens in the fiscal second quarter, primarily due to continued advertising investments, which are likely to keep operating expenses elevated in the near term.
Product-related challenges also weighed on performance in the quarter. Management highlighted that women’s bottoms, particularly denim, underperformed expectations and were the primary contributor to the decline in American Eagle sales. Performance was affected by the need to refine the product assortment toward more relevant styles and fits, while a colder-than-normal spring reduced demand across several seasonal categories. Although these factors pressured results, management remains focused on improving execution and enhancing product productivity in areas within its control.
The company is also facing meaningful cost pressures from import tariffs. For the fiscal second quarter, American Eagle expects an incremental tariff headwind of approximately $20 million compared with the prior year. The planned tariff rate on imports is expected to remain at 10% in the fiscal second quarter before increasing to 15% for the remainder of the year, creating an additional drag on profitability.
More broadly, management noted that the retail environment remains highly dynamic and continues to be shaped by macroeconomic uncertainty. Softer consumer demand in women's bottoms, tariff-related cost inflation and unfavorable seasonal conditions contributed to a more challenging operating environment in the first quarter and are expected to remain near-term headwinds.
American Eagle Invests in Marketing, Digital and Brand PartnershipsDespite near-term challenges, American Eagle continues to benefit from several long-term growth drivers that support customer engagement, traffic and brand visibility. The company remains committed to investing in its brands and operational capabilities where it expects the highest returns. As part of this strategy, AEO opened its West Coast distribution center in Phoenix in early May to further optimize its supply chain and improve inventory placement. Management believes the new facility will enhance product availability while giving customers greater flexibility in how and when they receive their purchases.
The company has also successfully shifted away from broad-based promotional activity toward a more disciplined commercial strategy focused on profitable growth. Management emphasized that this approach prioritizes higher-margin sales and more targeted promotions rather than widespread discounting. By improving promotional discipline, AEO aims to enhance the quality of revenue while building a more sustainable, margin-focused operating model.
Customer engagement remains strong, supported by American Eagle’s marketing initiatives and strategic brand partnerships. The company’s customer file expanded to more than 19 million, representing 3% year-over-year growth, reflecting continued brand relevance and customer loyalty. Digital innovation and social commerce also remain key priorities.
AEO recently launched a dedicated TikTok Shop and the AE Creator Community to engage its core demographic through more authentic and timely content. In addition, the company is reallocating marketing investments toward digital media, performance marketing and influencer partnerships to drive higher-converting traffic and shift its focus from broad brand awareness to customer conversion.
How Have Estimates Shaped Up for AEO?The Zacks Consensus Estimate for AEO’s current quarter and the current year earnings per share has remained unchanged at 21 cents and $1.77, respectively, in the past seven days.
Image Source: Zacks Investment Research
American Eagle is currently trading at a forward 12-month P/E multiple of 9.43X, lower than the industry average of 14.68X and well below the S&P 500 multiple of 21.13X. The stock is also trading below its 12-month median P/E of 12.29X, reflecting potential undervaluation.
American Eagle’s Valuation Picture
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How to Play AEO Stock?American Eagle is navigating macroeconomic challenges, tariff-related uncertainty and rising cost pressures, which may temper near-term performance. However, the company continues to benefit from digital innovation and strategic collaborations, which provide additional avenues for long-term growth. Given the balance between near-term headwinds and long-term growth opportunities, investors may prefer to remain on the sidelines until there is greater visibility into the pace of growth.
At present, AEO carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Eagle Outfitters oznámila změnu na pozici výkonného viceprezidenta a finančního ředitele: Mike Mathias přejde od 3. srpna 2026 na roli strategického poradce a nahradí ho Ravi Thanawala. Firma zároveň zopakovala výhled na 2. čtvrtletí i celý fiskální rok 2026.
PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters, Inc. (NYSE: AEO) today announced that after 25 years of service, Mike Mathias, Executive Vice President - Chief Financial Officer will transition to serve as a full-time non-executive strategic advisor to Jay Schottenstein, Executive Chairman of the Board and Chief Executive Officer, effective August 3, 2026.
Ravi Thanawala will succeed Mathias as Executive Vice President - Chief Financial Officer, also effective August 3, 2026. To ensure a seamless leadership transition, Mathias will collaborate closely with Thanawala through the remainder of AEO’s 2026 fiscal year and continue supporting Schottenstein through July 30, 2027.
“I want to extend my immense appreciation to Mike for his exceptional leadership and dedicated service. Mike’s history with AEO runs incredibly deep. He began his career with the company in 1998, and though his professional journey took him elsewhere for a time, his love for AEO’s brands and people ultimately brought him back in 2017, where his significant impact led to his promotion to CFO in 2020. Throughout his tenure, he has successfully guided our organization through a rapidly evolving retail landscape and a period of significant growth, which is why I’ve asked Mike to step into the role of strategic advisor to me. Mike’s financial expertise and strategic foresight have been instrumental in strengthening the foundation of our business, driving long-term value and positioning AEO for a bright future,” said Jay Schottenstein.
Schottenstein continued, “We are pleased to welcome Ravi Thanawala to the executive team. His extensive retail background, dynamic leadership style and proven track record of delivering operational excellence for consumer-facing brands will position us well for long-term success.”
"I am incredibly proud of the financial and operational milestones we have achieved during my time as CFO,” said Mike Mathias. “I want to thank Jay, the Board of Directors and my colleagues for their partnership and extend my appreciation to our exceptional finance team for their dedication and resilience. I leave the finance function in highly capable hands, backed by the deep bench strength of our talented leaders–and I have full confidence in AEO’s continued momentum in the marketplace as I support a smooth transition.”
Incoming Executive Vice President - Chief Financial Officer, Ravi Thanawala said, “American Eagle Outfitters, Inc. has been a premier specialty retailer for generations with longstanding market leadership, and I am honored to step into the role as CFO. I have long admired AEO's powerful portfolio of beloved lifestyle brands, including American Eagle and Aerie, as well as the disciplined financial foundation and strong operational framework that Jay, Mike and the team have established. My immediate priority is working with Mike to ensure a seamless transition that maintains organizational momentum. Looking ahead, I am excited to partner with Jay and leadership to accelerate long-term strategic initiatives, maintain financial discipline and unlock new avenues for profitable growth that will help to maximize value for our shareholders.”
In addition, AEO today reaffirmed its second quarter and full-year 2026 financial guidance, as previously announced in its earnings release on May 28, 2026.
About Ravi Thanawala
Ravi Thanawala was appointed the Chief Financial Officer and President, North America of Papa John’s International, Inc. in November 2025 after serving as Chief Financial Officer and EVP, International since September 2024. Thanawala also served as Papa John’s Interim Chief Executive Officer from March 2024 to August 2024, after joining the company as Chief Financial Officer in July 2023. He previously held the role of Chief Financial Officer of Nike North America at Nike, Inc. from June 2020 to July 2023. From 2018 to 2020, Thanawala also served as the Global VP and CFO of the Converse brand. In addition, he was the Global VP of Retail Excellence from 2016 to 2018. Prior to Nike, Inc., Thanawala spent eight years at ANN INC. with progressively increasing responsibilities in finance and operations. He served in the finance leadership role for LOFT; led ANN INC’s Asia operations, global logistics and international trade based in Hong Kong; and rose to the position of CFO of the ANN INC. business, a subsidiary of Ascena Retail Group, Inc.
About American Eagle Outfitters, Inc.
American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer with a portfolio of beloved apparel brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed. Rooted in optimism, inclusivity and authenticity, AEO’s brands empower every customer to celebrate their unique personal style by offering casual, comfortable, timeless outfitting and high-quality products that are made to last.
AEO Inc. operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through a global network of license partners. Additionally, the company operates a robust e-commerce business across its brands. For more information, visit aeo-inc.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent management’s expectations or beliefs concerning future events, including, without limitation, expected results for the second quarter and full-year fiscal 2026. Words such as “outlook,” "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," “may,” “potential,” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 and in any other filings that we may make with the Securities and Exchange Commission, in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate fluctuations in customer demand and respond to changing consumer preferences and fashion trends and to manage our inventory commensurately; the seasonality of our business; our inability to achieve planned store financial performance and gain market share in the face of declining shopping center traffic or attract customers to our stores; our inability to react to raw material cost, labor and energy cost increases; our inability to respond to changes in e-commerce and leverage omni-channel capabilities; our inability to execute on our key business priorities; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; the impact that foreign trade issues, including import tariffs and other trade restrictions imposed by the U.S., China or other countries have had, and may continue to have, on our product costs, as well as continued uncertainty with respect to tariffs and other trade restrictions, the possibility that product costs may be affected by other foreign trade issues, such as currency exchange rate fluctuations, increasing prices for raw materials, supply chain issues, the potential for a trade war, political instability or other reasons; challenges with information technology systems, including safeguarding against security breaches; changes to U.S. or other countries' trade policies and tariff and import/export regulations, and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity.
The use of the “company,” “AEO,” “we,” "us," and “our” in this release refers to American Eagle Outfitters, Inc.
Key Takeaways AEO posted 10% revenue growth as Aerie delivered 34% sales and 25% comparable sales growth.AEO's Aerie surpassed $2 billion in trailing 12-month revenue with broad-based category strength.AEO expects Aerie's comparable sales growth in the high-teens to low 20% range for the fiscal second quarter. American Eagle Outfitters, Inc. (AEO - Free Report) delivered a strong first-quarter fiscal 2026 performance, with Aerie remaining the primary growth driver, delivering exceptional results across both sales channels and profitability. The company’s revenues increased 10% year over year to $1.2 billion, and operating income reached $28 million, exceeding management’s guidance. Total Aerie sales increased 34%, while comparable sales rose 25%, reflecting broad-based growth across channels and reinforcing the brand’s continued momentum within the company’s portfolio.
Aerie surpassed the $2 billion milestone in trailing 12-month revenue, reflecting years of disciplined execution, sustained brand building and deep customer engagement. In the first quarter of fiscal 2026, both the Aerie and OFFLINE brands generated strong customer response, supported by compelling products, impactful marketing and well-aligned sales channels.
Aerie delivered broad-based strength across key categories, led by a 45% comparable sales increase in apparel. Management also credited its head-to-toe merchandising strategy across intimates, sleepwear and apparel for simplifying customers’ outfit choices while increasing basket size and average order value, reinforcing the brand’s repeatable growth model.
The company continued to strengthen its commercial and brand strategy by replacing brand-wide promotions with a more disciplined, higher-margin approach centered on targeted promotions, always-on pricing and marketing investments to attract and retain high-value customers.
At the same time, American Eagle enhanced Aerie’s brand visibility through its 100% Aerie Real campaign featuring Pamela Anderson, reinforcing the brand’s commitment to inclusivity, authenticity and transparency while deepening customer engagement. Looking ahead, Aerie is projected to maintain momentum with comparable sales growth in the high-teens to low 20% range in the fiscal second quarter of 2026.
Aerie’s sustained performance underscores its evolution into a powerful long-term value creator for American Eagle. With a scalable business model and strong brand resonance, the company appears well-positioned to deliver consistent earnings growth and strengthen its competitive position over time.
The Zacks Rundown for AEOAEO’s shares have surged 87.6% in the past year compared with the industry’s growth of 10.7%. AEO carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
From a valuation standpoint, AEO trades at a forward price-to-earnings ratio of 9.91X, lower than the industry’s average 15.14X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AEO’s current and next fiscal year earnings implies a year-over-year growth of 18% and 7.5%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Urban Outfitters, Inc. (URBN - Free Report) offers lifestyle products and services in the United States and internationally. At present, URBN carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for URBN’s current fiscal-year sales and earnings implies growth of 8.6% and 10.5%, respectively, from the year-ago figures. URBN has delivered a trailing four-quarter earnings surprise of 12.2%, on average.
Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.
