American Eagle Outfitters (AEO) Q1 2027 earnings summary

Executive summary

• Achieved record first quarter revenue of $1.2 billion, up 10% year-over-year, with operating income of $28 million, exceeding guidance and reversing an $85 million loss last year.

• Aerie delivered exceptional growth, surpassing $2 billion in trailing 12-month revenue, with segment revenue up 34% and comparable sales up 25% year-over-year.

• American Eagle (AE) saw mixed results: men's performed well, but women's bottoms underperformed, driving a 2% sales decline for the brand.

• Returned $74 million to shareholders in Q1 via $53 million in share repurchases and $21 million in dividends.

• Focus remains on operational excellence, disciplined execution, and strategic investments in marketing, product innovation, and distribution amid macroeconomic uncertainty.

Financial highlights

• Total revenue increased 10% year-over-year to $1.2 billion in Q1.

• Gross profit was $456 million, up 41% from last year; gross margin expanded 860 basis points to 38.2%.

• Operating profit reached $28 million (2.4% margin), compared to an $(85) million loss last year.

• EPS for the quarter was $0.14 versus $(0.36) last year.

• Ending inventory at cost rose 27% to $817 million, with units up 5%.

Outlook and guidance

• Q2 comparable sales expected to grow mid to high single digits; Aerie and OFFLINE projected high teens to low twenties, AE flat to negative low single digits.

• Q2 operating income guidance: $45–$50 million, including a $20 million tariff headwind.

• Full-year operating profit expected at $390–$410 million, with mid-single-digit consolidated comp sales growth.

• CapEx for the year guided at $250–$260 million.

• Guidance assumes 10% tariff rate for Q2 receipts and 15% for the back half of the year.