American Eagle Outfitters Earnings Call Transcripts
Fiscal Year 2027
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Second quarter revenue grew 8% year-over-year to $1.4 billion, with Aerie delivering 25% revenue growth and American Eagle showing sequential improvement. Operating income reached $211 million, aided by a $161 million tariff refund, and full-year guidance anticipates continued momentum in Aerie and stable performance in American Eagle.
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Revenue grew 10% to $1.2B, led by Aerie's 34% surge, while AE saw a 2% decline due to women's bottoms. Gross margin expanded 860 bps, and Q2 guidance calls for mid to high single-digit comp growth, with continued tariff headwinds.
Fiscal Year 2026
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Q4 2025 saw double-digit sales growth and record revenue, driven by strong Aerie and OFFLINE comps and robust holiday demand. Despite tariff headwinds, profitability and cash flow improved, with significant shareholder returns and a positive outlook for 2026.
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Record Q3 revenue and profit exceeded expectations, led by Aerie’s double-digit growth and strong digital performance. Raised Q4 guidance reflects continued momentum, despite tariff headwinds and higher advertising spend.
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Second quarter results exceeded expectations with $1.28B in revenue and 2% higher operating income. Strong marketing campaigns drove record new customer acquisition and positive traffic, while tariff impacts and cost management remain key focus areas for the second half.
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Q1 saw a $68M adjusted operating loss and a $75M inventory write-down, with revenue down 5% year-over-year. Management is focused on inventory alignment, cost controls, and brand growth, but macro and tariff headwinds persist. Q2 revenue and comps are expected to decline similarly.
Fiscal Year 2025
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Record 2024 revenue and profit growth were driven by strong brand performance and disciplined expense control, but 2025 is expected to see lower revenue and operating income amid consumer uncertainty, currency headwinds, and tariffs. Digital and activewear segments remain growth drivers.
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Q3 delivered 3% comp sales growth and high-end adjusted operating income, despite a 1% revenue decline due to calendar shifts. Strong brand momentum, cost efficiencies, and robust store performance offset demand choppiness, with a cautious Q4 outlook amid FX and calendar headwinds.
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Q2 delivered record revenue of $1.3B (up 8% YoY) and 55% operating income growth, with both AE and Aerie brands posting strong comp gains. Full-year guidance was raised, with operating income now expected at $455–$465M and comps up 4%.
Fiscal Year 2024
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Powering Profitable Growth strategy is driving strong income and margin expansion, supported by new leadership, brand innovation, and disciplined cost management. Store remodels and product innovation in denim, Aerie, and OFFLINE are fueling growth, with a focus on long-term profitability and customer loyalty.