10-Q · June 3, 2026
American Eagle Outfitters, Inc. delivered a solid performance for Q1 2026, reporting total revenue of $1.195 billion, surpassing expectations and reflecting a 10% year-over-year increase. The company achieved EPS of…
Earnings analysis · 10-Q
AEO earnings analysis
Filed September 10, 2026 · Our reading of the company's report
The latest report
AEO delivered a strong second quarter, with revenue up 8%, Aerie revenue up 25%, operating margin expanding to 15.3%, and diluted EPS of $0.79. However, the earnings improvement was substantially supported by $196…
Read full summary
AEO delivered a strong second quarter, with revenue up 8%, Aerie revenue up 25%, operating margin expanding to 15.3%, and diluted EPS of $0.79. However, the earnings improvement was substantially supported by $196 million of tariff refunds, including a $0.52-per-share EPS benefit, while the American Eagle brand posted a 1% comparable-sales decline. Liquidity remains adequate, but cash fell to $148.0 million, inventory rose to $817.9 million, and interest expense increased to $47.1 million. The filing states that there were no material changes to the risk factors disclosed in the Fiscal 2025 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.79
What stood out
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Revenue and comparable sales accelerated
Second-quarter revenue increased 8% year over year to $1.380 billion from $1.284 billion. Digital revenue increased 20%, store revenue increased 1%, and total comparable sales increased 6%.
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Gross margin expanded sharply
Gross profit increased 34% to $672.1 million, while gross margin expanded 980 basis points to 48.7% from 38.9%. The increase included a $179 million net tariff-refund benefit.
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Operating profit more than doubled
Operating income increased 105% to $211.4 million from $103.1 million, and operating margin expanded to 15.3% from 8.0%. Net tariff refunds contributed $161 million and 1,170 basis points of operating-margin expansion.
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EPS materially exceeded consensus
Diluted EPS increased to $0.79 from $0.45, including a $0.52 per-share benefit from net tariff refunds. The reported EPS exceeded the $0.27 consensus estimate by $0.52.
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Aerie delivered strong growth
Aerie was the primary growth engine, with revenue up 25% to $535.8 million and operating income up $95.5 million to $170.2 million. Aerie comparable sales increased 19%.
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Operating cash flow turned positive
Operating cash flow was $116.3 million for the first 26 weeks versus a use of $26.9 million last year. Capital expenditures were $127.6 million, including $87.4 million for stores, fixtures and visual investments and $28.7 million for information technology.
What to watch
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Earnings heavily benefited from tariff refunds
Reported profitability was significantly boosted by a non-recurring or potentially non-repeatable $196 million of tariff refunds, including interest; management stated that $161 million of net refunds contributed to operating income. The filing also notes that tariff uncertainty remains ongoing.
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American Eagle traffic and margins weakened
The American Eagle brand remains under pressure: comparable sales decreased 1% and store traffic declined by a mid-single-digit percentage for the first 26 weeks. Management also cited increased markdowns and promotional activity as a drag on merchandise margin.
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Higher interest and working-capital usage
Interest expense increased to $47.1 million from $1.9 million year over year, primarily due to $44.7 million of accretion expense tied to the tariff-refund Participation Agreement. Cash declined to $148.0 million from $238.9 million at January 31, 2026, while inventory increased to $817.9 million from $702.0 million.
Management's outlook
The 10-Q provides no quantitative revenue or EPS guidance. Management expects Fiscal 2026 capital expenditures of $250 million to $260 million and believes current cash holdings and available liquidity will fund cash requirements in the short and long term.
Earlier filings 4
10-K · March 30, 2026
AEO describes a focused, omni-channel growth strategy centered on its two reportable brands (American Eagle and Aerie), a large store footprint and continued investment in digital and loyalty capabilities. The filing…
10-Q · December 9, 2025
American Eagle reported quarter revenue of $1,362,701,000 and diluted EPS of $0.53, with operating income rising to $112,574,000. Gross profit increased in dollars to $551,877,000 but gross margin was roughly flat; the…
10-Q · September 9, 2025
American Eagle reported essentially flat Q2 revenue of $1,283,675 (in thousands) versus $1,291,058 in the prior year and delivered diluted EPS of $0.45 (vs $0.39 prior year). Gross margin remained healthy at ~39.0% and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.