Key facts
- American Eagle Outfitters reported Q2 revenue of $1.38 billion, exceeding analyst estimates.
- Strong demand for the Aerie brand's intimates, sleepwear, and apparel drove the revenue beat.
- The company reiterated its annual comparable sales forecast and raised its operating income target.
- Fiscal year 2026 operating income is projected to be between $390 million and $410 million.
American Eagle Outfitters surpassed second-quarter revenue expectations, reporting $1.38 billion in sales, driven by strong consumer demand for its Aerie brand's intimates, sleepwear, and apparel. Analysts had projected revenue of $1.37 billion.
Earlier in the year, the company reported first-quarter 2026 earnings of $0.14 per share, exceeding the consensus estimate of $0.11. Quarterly revenue for Q1 2026 rose 9.7% year-over-year to $1.20 billion, surpassing expectations of $1.18 billion.
For the fourth quarter of fiscal year 2025, American Eagle Outfitters announced record total revenue of $1.8 billion, a 10% increase from the previous year. This was supported by an 8% rise in total comparable sales, with the Aerie brand seeing a 23% increase and American Eagle brand sales growing by 2%.
Looking ahead, the company provided fiscal year 2026 guidance, projecting operating income between $390 million and $410 million. Jay Schottenstein, Executive Chairman and CEO, expressed satisfaction with the strong execution in the latter half of 2025, which reignited brand growth and led to a robust fourth quarter and holiday period.
Despite cautious consumer spending on discretionary items, American Eagle Outfitters reiterated its annual comparable sales forecast and raised its operating income target, partly due to $196 million in tariff refunds received during the second quarter.
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