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Jan 31
American Eagle Q4 2025 Earnings Report
American Eagle Q4 2025 Earnings Report
Key Takeaways
American Eagle Outfitters delivered a record fourth quarter with a 10% revenue increase and strong comparable sales growth of 8%. Performance was led by Aerie's 23% comp growth and a return to positive growth for the American Eagle brand. Despite a $50 million tariff impact, the company achieved significant adjusted operating margin expansion through cost efficiencies and SG&A leverage.
Total revenue reached a record $1.8 billion for the quarter, up 10% year-over-year.
Aerie continued its high-growth trajectory with a 23% increase in comparable sales.
Adjusted operating profit rose 27% to $180 million, expanding adjusted operating margin by 130 basis points to 10.2%.
The company is exiting its Quiet Platforms third-party logistics business, resulting in significant impairment and restructuring charges.
Revenue by Segment
Forward Guidance
AEO expects continued growth in Fiscal 2026 with mid-single digit comparable sales growth and operating income between $390 million and $410 million.
Positive Outlook
- Fiscal 2026 operating income guidance of $390 to $410 million.
- Expected mid-single digit comparable sales growth for the full year.
- First quarter 2026 comparable sales expected to be up high-single digits.
- Gross margin expected to be up year-over-year in both Q1 and FY2026.
- Continued focus on corporate savings and operational efficiencies.
Challenges Ahead
- SG&A expenses expected to increase 10% in Q1 2026.
- Full year SG&A expected to increase mid-single digits.
- Guidance includes continued impact from tariffs reflecting 2025 guidelines.
- Planned capital expenditures of $250 to $260 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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