American Eagle Outfitters

AEO

Market cap $2.65B

Aerie's sales are surging. American Eagle, however, is finding it far more difficult to grow revenue.

American Eagle Outfitters Inc. (NYSE:AEO) reported first quarter results that topped Wall Street expectations on both revenue and earnings, but issued forward outlook that incorporates significant tariff-related assumptions and weighed on investor sentiment, sending shares down about 13%. The company said it expects a 10% tariff rate for second-quarter receipts and 15% for the back half of fiscal 2026.

AEO beats Q1 estimates as revenues rise from a year ago and Aerie comps jump, fueling sharp margin expansion and improved profitability.

American Eagle Outfitters Inc (NYSE:AEO) shares were last seen down 13.9% to trade at $15.44, brushing off an earnings beat and record revenue of $1.2 billion, well past estimates.

Despite Its Plunge, American Eagle Outfitters Is Still An Excellent Fit For Your Portfolio

Shares of apparel makers Gap and ​American Eagle Outfitters dropped 15% and 10%, respectively, in premarket trade on Friday ‌after weak annual forecasts, as consumers curb discretionary spending amid a tough macroeconomic climate.

For two retailers that both saw their stock slide by a double-digit percentage after earnings, what may be most surprising is that executives at both Gap and American Eagle Outfitters say nothing is wrong with the economy.

The headline numbers for American Eagle (AEO) give insight into how the company performed in the quarter ended April 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

American Eagle Outfitters (AEO) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to a loss of $0.29 per share a year ago.

American Eagle Outfitters NYSE: AEO reported first-quarter revenue growth and operating income ahead of its guidance, as continued momentum at Aerie and OFFLINE offset weaker trends in parts of the namesake American Eagle brand.