Aerie, OFFLINE drive record quarter for AEO’s growth

During the 4th ended 31 January 2026, full nett gross of AEO reached $1.8bn, representing a 10% summation compared to the aforesaid play past year.

Comparable income roseate by 8%, gathering connected 3% maturation successful the anterior year’s 4th quarter, with Aerie starring the mode done a 23% surge and OFFLINE besides delivering beardown double-digit gains.

The American Eagle marque saw a 2% summation successful comparable sales, maintaining its affirmative trajectory.

AEO enforcement president of the Board and main enforcement serviceman Jay Schottenstein said: “I americium highly pleased with the beardown execution successful the backmost fractional of the year, which reignited maturation crossed our brands and channels. Building connected the improved trends opening past summer, we achieved a grounds 4th fourth and vacation period, with treble digit maturation astatine Aerie and OFFLINE and solid, affirmative show astatine American Eagle. Compelling caller merchandise collections, supported by caller selling campaigns, led to higher request trends successful the quarter. I privation to convey our associates for their resilience and outstanding execution to present a beardown decorativeness to 2025.”

Key metrics from Q4 FY25

AEO posted gross nett of $651m implicit the 4th from $599m successful the aforesaid play a twelvemonth ago, though gross borderline edged down by 30 ground points to 37%.

The institution noted that tariffs had a $50 cardinal antagonistic interaction connected gross borderline during the quarter.

Despite accrued markdowns, operational efficiencies and favourable currency movements helped offset these pressures.

Selling, wide and administrative (SG&A) expenses totalled $418m for the quarter, up 4% year-over-year.

Operating nett arsenic calculated successful mostly Accepted Accounting Principles (GAAP) stood astatine $96m aft accounting for $84m successful impairment and restructuring charges related to logistics concern exits and store impairments. Diluted net per stock were $0.50 successful Q4 FY25 compared to $0.54 successful the erstwhile year.

Overall show successful afloat twelvemonth 2025

AEO generated $5.5 cardinal successful full nett gross successful FY25, up 3% from past year. Comparable income precocious by 3%, pursuing a 4% summation successful the anterior period.

Gross nett for the twelvemonth was $2.0bn, down 3% from past twelvemonth and gross borderline declined by 230 ground points to 36.9%, chiefly owed to an inventory write-down successful the archetypal 4th and higher markdowns combined with ongoing tariff impacts.

GAAP operating income was $226m, which construe to diluted EPS of $1.09.

The institution ended the fiscal with full inventory of $702m with units up 3%.

Outlook for archetypal 4th and afloat twelvemonth 2026

Looking guardant to fiscal twelvemonth 2026, AEO expects precocious single-digit comparable income maturation for the archetypal 4th and mid-single-digit maturation for the afloat year, on with improved gross margins.