American Eagle Outfitters (AEO) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 2025 revenue of $1.8 billion, up 10% year-over-year, with double-digit growth at Aerie and OFFLINE and positive American Eagle performance.

• Full-year 2025 revenue reached $5.5 billion, up 3%, with adjusted operating income of $328 million.

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

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

• Exited Quiet Logistics/Platforms, incurring $84–$85 million in restructuring charges and expecting $20 million in annual savings.

Financial highlights

• Q4 adjusted operating income was $180 million, up 27%; adjusted operating margin rose to 10.2% from 8.9%.

• Q4 gross profit was $651 million, up 9%; gross margin declined 30 bps to 37% due to tariff pressure.

• Q4 adjusted diluted EPS was $0.84, up from $0.54 last year.

• Ended 2025 with $239 million in cash, no debt, and total liquidity of $930 million.

• FY25 net income attributable to shareholders was $192 million, with diluted EPS of $1.09 (GAAP) and $1.50 (adjusted).

Outlook and guidance

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

• Q1 operating income guidance: $20–$25 million, including $30 million tariff headwind and 10% SG&A increase.

• Full-year 2026 operating profit expected at $390–$410 million, with mid-single-digit comp sales growth.

• CapEx for 2026 projected at $250–$260 million, including 35 new Aerie/OFFLINE stores and 60 remodels.

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