American Eagle Outfitters reported fourth‑quarter 2025 results that beat expectations, with revenue of $1.8 billion and adjusted earnings per share of $0.84, surpassing the consensus estimate of $0.72 by $0.12 (a 16.7% beat). The company’s adjusted operating margin expanded to 10.2% from 8.9% in the prior year, reflecting a mix shift toward higher‑margin Aerie products and disciplined cost management.
Revenue growth was driven by a 23% increase in comparable sales at Aerie and a modest 2% rise at the American Eagle brand, bringing total comparable sales up 8% year‑over‑year. The Aerie brand’s strong performance offset headwinds in legacy categories, while the American Eagle brand maintained steady demand across its core product lines.
Executive Chairman and CEO Jay Schottenstein said the company’s “double‑digit sales growth in the fourth quarter ahead of plan” and “solid margin performance” were the result of a deliberate action plan that focused on core brands and exited the Quiet Logistics third‑party business. CFO Mike Mathias added, “Our strong performance in the fourth quarter is a testament to this work with results coming in ahead of expectations across margins and profitability.” President and Executive Creative Director Jennifer Foyle highlighted the company’s commitment to product leadership, noting an acceleration in demand for Aerie across all categories.
Management guided for mid‑single‑digit comparable sales growth for fiscal 2026 and projected operating income between $390 million and $410 million. For the first quarter of fiscal 2026, the company expects high single‑digit comparable sales growth and operating income of $20 million to $25 million, signaling confidence in continued momentum driven by Aerie and the OFFLINE brand.
Tariff pressure of roughly $50 million in net impact on gross margin was mitigated by cost‑saving initiatives and operational efficiencies. The company’s strategic focus on core brands, store remodels, and the exit from Quiet Logistics underpins its ability to sustain margin expansion while navigating ongoing supply‑chain and pricing challenges.
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