American Eagle Outfitters (AEO) Q4 2025 earnings summary

Executive summary

• Achieved record 2024 revenue of $5.33 billion, driven by 4% comparable sales growth and strong brand momentum across American Eagle and Aerie, with adjusted operating profit up 19% to $445 million and margin expansion to 8.3%.

• Fourth quarter operating income reached $142 million, the highest in over a decade, with 3% comp sales growth and record holiday sales.

• Returned over $280 million to shareholders in 2024 via buybacks and dividends, with a new 50 million share repurchase authorization for 2025.

• Maintained a strong balance sheet and liquidity, ending 2024 with $359 million in cash and investments and over $920 million in total liquidity.

Financial highlights

• Fiscal 2024 revenue was $5.33 billion, up 1% year-over-year; adjusted operating income was $445 million, up 19%.

• Fourth quarter consolidated revenue was $1.6 billion, down 4% year-over-year due to retail calendar impact, but comp sales rose 3%.

• Q4 gross profit was $599 million at a 37.3% margin, with lower markdowns offsetting higher freight and product costs.

• SG&A expenses decreased 6% in Q4, leveraging 40 basis points as a rate to sales.

• Full-year cash flow from operations exceeded $470 million.

Outlook and guidance

• 2025 has started softer than expected due to a less robust consumer environment and cold weather, with Q1 revenue projected to decline mid-single digits and operating income of $20–$25 million.

• Full-year 2025 revenue and operating income expected to be down relative to 2024, with operating income outlook of $360–$375 million, including $20 million adverse currency impact and $5–$10 million from tariffs.

• Gross margin expected to be down in the first half due to higher markdowns, tariffs, and deleverage, but flat in the back half.

• SG&A dollars expected flat in Q1 and down for the full year.

• Capital expenditures planned at $300 million, including a one-time $40 million Manhattan office relocation.