American Eagle Outfitters 2026 Q2 Earnings Strong Earnings Growth Despite Flat Revenue

American Eagle Outfitters (AEO) reported its fiscal 2026 Q2 earnings on September 3, 2025. The company posted a 12.5% increase in EPS despite a slight dip in overall revenue. The report reflects continued earnings momentum amid a challenging retail environment.

Revenue
The total revenue of American Eagle Outfitters decreased by 0.6% to $1.28 billion in 2026 Q2, down from $1.29 billion in 2025 Q2. While the core American Eagle brand reported revenue of $800.41 million, the Aerie division contributed $429.08 million, demonstrating its continued strength in the market. Additional revenue streams included $61.52 million from other segments, while intersegment eliminations reduced revenue by $7.34 million, resulting in a total net revenue of $1.28 billion. Aerie posted 3% comp growth, signaling resilience and brand strength in the quarter.

Earnings/Net Income
American Eagle Outfitters's EPS rose 12.5% to $0.45 in 2026 Q2 from $0.40 in 2025 Q2, marking continued earnings growth. The company's profitability also improved slightly, with net income rising 0.5% to $77.63 million in 2026 Q2 from $77.26 million in the prior year period. This performance highlights the company’s ability to manage costs and drive profitability despite a marginal decline in top-line revenue.

Price Action
The stock price of American Eagle Outfitters edged up 0.59% during the latest trading day, surged 11.82% over the most recent full trading week, and has climbed 26.82% month-to-date, reflecting strong investor sentiment following the earnings report.

Post-Earnings Price Action Review
Jay Schottenstein, Executive Chairman and CEO, emphasized the company's progress in strengthening brand performance, optimizing operations, and expanding its growth runway. He highlighted Aerie’s 3% comp growth and positive momentum in key categories at AE, driven by targeted product initiatives, marketing campaigns, and improved customer engagement. Schottenstein also outlined the company’s proactive strategies to manage supply chain challenges, including tariff-related costs, through sourcing optimization and supply chain efficiencies. Looking ahead, he expressed confidence in the fall season, citing the success of key campaigns such as the Sydney Sweeney and Travis Kelce collaborations, which helped drive traffic and attract new customers. The CEO reaffirmed the company’s commitment to long-term profitable growth and shareholder value creation.

Guidance
For the third quarter, American Eagle Outfitters expects low single-digit comparable sales growth and operating income between $95 million and $100 million, which includes $20 million of incremental tariff costs. Fourth-quarter guidance includes low single-digit comp growth and operating profit between $125 million and $130 million, with $40 million to $50 million of tariff impact. SG&A costs are expected to increase in the high single digits in Q3 due to advertising investments but are anticipated to remain slightly lower in Q4. The company also plans to close 35 to 40 American Eagle locations by year-end and open or remodel 70 locations, including 30 Aerie and offline locations. Capital expenditures are expected to reach approximately $275 million for the year, focusing on digital improvements and store fleet optimization.

Additional News
On September 3, 2025, the Nigerian newspaper Punch reported on a growing number of incidents involving armed conflicts, including a clash between Pakistani border guards and Taliban militants that resulted in two deaths. Additionally, a fatal boat accident in Niger claimed 29 lives, further underscoring the region’s ongoing security challenges. In business news, Nigeria’s non-oil revenue increased by 40% to N20.6 trillion, a significant achievement attributed to government reforms under President Bola Ahmed Tinubu, who emphasized that his economic strategy has restored the country’s global respect. Political developments also gained attention, with former Minister Adebayo Shittu predicting that President Tinubu would secure substantial support in the 2027 elections, particularly in the South-East region.