American Eagle Outfitters (AEO) Q4 2026 earnings summary

Executive summary

• Achieved record fourth quarter revenue of $1.8 billion, up 10% year-over-year, with double-digit growth at Aerie and OFFLINE and positive performance at American Eagle.

• Adjusted operating profit for Q4 rose 27% to $180 million, with adjusted EPS at $0.84.

• Returned $341 million to shareholders in 2025 through $256 million in buybacks and $85 million in dividends.

• Entered fiscal 2026 with strong momentum, focusing on brand investment, corporate savings, and efficiency for long-term profitable growth.

• Exited Quiet Logistics/Platforms to focus on core brands, enhancing logistics and operational efficiency.

Financial highlights

• Q4 comparable sales grew 8%, with Aerie up 23% and American Eagle up 2%.

• Q4 gross profit rose 9% to $651 million; gross margin declined 30 bps to 37.0%.

• Q4 adjusted operating margin was 10.2%, up from 8.9% last year; SG&A expense rate was 23.8% of revenue (down 120 bps YoY).

• Fiscal 2025 net revenue reached $5.5 billion, up 3% year-over-year; adjusted operating income was $328 million.

• Q4 GAAP operating profit was $96 million, including $84–$85 million in impairment and restructuring charges.

Outlook and guidance

• Q1 2026 comparable sales expected to grow high single digits; AE comps in low single digits, Aerie/OFFLINE in double digits.

• Q1 operating income expected at $20–$25 million, including $30 million tariff headwind and higher SG&A from advertising.

• Fiscal 2026 operating income guidance: $390–$410 million, with mid-single-digit comp sales growth.

• CapEx for 2026 projected at $250–$260 million, including new store openings and remodels.

• 80% of annual operating profit expected in the second half due to tariff and advertising pressures in H1.