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 total comparable sales up 8% and full-year revenue at $5.5 billion, up 3% year-over-year.

• Adjusted operating income for Q4 was $180 million, up 27% year-over-year; full-year adjusted operating income was $328 million.

• Aerie and OFFLINE delivered 23% comp growth in Q4, while American Eagle comps grew 2%.

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

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

Financial highlights

• Q4 consolidated revenue increased 10% to $1.8 billion; comparable sales up 8%.

• 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; Q4 adjusted diluted EPS was $0.84.

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

• Year-end inventory increased 10% to $702 million, with a current ratio of 1.52.

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 new store openings and remodels.

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