American Eagle Outfitters Inc.

03/04/2026 | Press release | Distributed by Public on 03/04/2026 15:21

AEO Inc. Reports Strong Fourth Quarter Fiscal 2025 Results; Provides Fiscal 2026 Outlook (Form 8-K)

AEO Inc. Reports Strong Fourth Quarter Fiscal 2025 Results; Provides Fiscal 2026 Outlook

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Total revenue increased 10% to a record $1.8 billion, driven by total comparable sales increase of 8% with positive results across brands
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Aerie comps +23%, American Eagle comps +2%
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Returned $341 million to shareholders in 2025 from $256 million in shares repurchases and $85 million in dividends
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Fiscal 2026 operating income guidance of $390 to $410 million

PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the fourth quarter and fiscal year ended January 31, 2026, and provided its outlook for fiscal year 2026.

Jay Schottenstein, Executive Chairman of the Board and Chief Executive Officer, AEO Inc., commented, "I am extremely pleased with the strong execution in the back half of the year, which reignited growth across our brands and channels. Building on the improved trends beginning last summer, we achieved a record fourth quarter and holiday period, with double digit growth at Aerie and OFFLINE and solid, positive performance at American Eagle. Compelling new product collections, supported by fresh marketing campaigns, led to higher demand trends in the quarter. I want to thank our associates for their resilience and outstanding execution to deliver a strong finish to 2025."

"We enter 2026 from a position of strength with the goal of building on this year's successes. The first quarter is off to a positive start and we remain focused on investing in our brands and driving additional corporate savings and efficiency across the business. I'm confident that our strategic actions will lead to long-term profitable growth and shareholder value creation," he concluded.

Fourth Quarter 2025 Results:

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Total net revenue of $1.8 billion increased 10% to last year. Total comparable sales increased 8%, on top of 3% comp growth last year.
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Aerie comparable sales increased 23% on a 6% increase last year. American Eagle comparable sales grew 2% following 1% growth last year.
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Gross profit of $651 million rose 9% from $599 million last year. The gross margin of 37.0% declined 30 basis points to last year.
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The net tariff impact was $50 million or 280 basis points to gross margin. Increased markdowns were largely offset by leverage on positive sales combined with lower costs, favorable currency and operational efficiencies.
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Buying, Occupancy and Warehousing (BOW) expenses leveraged 50 basis points due to positive sales.
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Selling, general and administrative (SG&A) expenses increased 4% to $418 million, leveraging 120 basis points to a rate of 23.8% to revenue. Overall cost efficiencies and lower incentives were offset by planned investments in advertising.
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GAAP operating profit was $96 million, which includes $84 million of impairment and restructuring charges related to the company's exit from the Quiet Platform third party logistics business, store impairments and general corporate restructuring.
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Adjusted operating profit of $180 million increased 27% from $142 million last year. The adjusted operating margin of 10.2% expanded 130 basis points from 8.9% last year.
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Other income of $15 million reflected unrealized gains on investments previously disclosed.
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GAAP Diluted earnings per share of $0.50 compared to $0.54 last year.
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Adjusted diluted earnings per share of $0.84 compared to $0.54 last year. Average diluted shares outstanding were 176 million.

Fiscal Year 2025 Results:

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Total net revenue of $5.5 billion increased 3% versus last year. Total comparable sales increased 3%, on top of 4% comp growth last year.
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Aerie comparable sales increased 9% on 5% growth last year. American Eagle comparable sales were flat following 3% growth last year.
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Gross profit of $2.0 billion decreased 3%. Gross margin of 36.9% decreased 230 basis points largely reflecting an inventory write-down taken in the first quarter, higher markdowns and the impact of tariffs, partially offset by business improvement and cost efficiencies in the second half of the year.
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Selling, general and administrative expense of $1.5 billion increased 4%, up 10 basis points as a rate to revenue. Lower incentive costs and general cost savings were offset by planned investments in advertising.
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GAAP Operating income of $226 million, which includes $102 million of impairment and restructuring charges related to the company's exit from the Quiet Platform third party logistics business, store impairments and general corporate restructuring. GAAP operating income was $427 million last year.
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Adjusted operating income of $328 million compared to adjusted operating income of $445 million last year.
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GAAP diluted earnings per share was $1.09 compared to $1.68 last year.
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Adjusted diluted earnings per share was $1.50 compared to adjusted diluted earnings per share of $1.74 last year. Average diluted shares outstanding were 176 million.

Inventory

Total ending inventory increased 10% to $702 million with units up 3%. Ending cost inventory includes the impact of tariffs.

Shareholder Returns

In the fourth quarter the company repurchased one million shares for $25 million, bringing full year repurchases to 21 million shares for $256 million. The company also returned $21 million to shareholders via its quarterly cash dividend of $0.125 per share, bringing year-to-date cash dividends to $85 million.

Capital Expenditures

Capital expenditures totaled $59 million in the fourth quarter, bringing full year spend to $261 million. The company expects 2026 capital expenditures to be in the range of $250 to $260 million.

Outlook

*All guidance is based on estimates and includes tariffs reflecting 2025 IEEPA guidelines.

First Quarter 2026 Outlook

Fiscal Year 2026 Outlook

Comparable Sales

+ High-Single Digit

+ Mid-Single Digit

Gross Margin

Up YoY

Up YoY

SG&A

+10%

+MSD

Depreciation and Amortization

$54 M

$225 M

Operating Income

$20 to $25 M

$390 to $410 M

Weighted Average Share Count

176 M

177 M

Capital Expenditures

-

$250 to $260 M

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.

Non-GAAP Measures

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