American Eagle keeps annual revenue outlook in Q1 unchanged

American Eagle Outfitters

28/05/2026 21:21

Overview
US apparel retailer's Q1 revenue rose 10%, slightly beating analyst expectations
Adjusted EPS for Q1 beat consensus
Company repurchased 3 mln shares for $53 mln in Q1

Outlook
American Eagle Outfitters sees Q2 operating income of $45M to $50M
Company reiterates fiscal 2026 operating income guidance of $390M to $410M
Company expects Q2 comparable sales to rise mid-to-high single digits

Result Drivers
AERIE GROWTH - Aerie brand delivered record Q1 revenue and 25% comparable sales growth, driven by product assortments and marketing campaigns
MARGIN IMPROVEMENT - Gross margin rose 860 basis points, mainly due to the absence of last year's $75 mln inventory writedown and merchandise margin gains
AMERICAN EAGLE CHALLENGES - American Eagle brand comparable sales fell 2%, with management citing mixed results and efforts to improve women's business and product execution

Company press release: ID:nBw6R8kjta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$1.20 bln
$1.19 bln (12 Analysts)
Q1 Adjusted EPS
Beat
$0.14
$0.12 (12 Analysts)
Q1 EPS
 
$0.14
 
Q1 Net Income
 
$22.94 mln
 
Q1 Total Comparable Sales Growth
 
8%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
Wall Street's median 12-month price target for American Eagle Outfitters Inc is $21.44, about 22.1% above its May 27 closing price of $17.56
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)