American Eagle Outfitters slides on tariff-driven margin pressure

American Eagle Outfitters

05/03/2026 16:03

Updates

** Shares of American Eagle Outfitters AEO.N slump as much as 13.36% to $19.45

** Stock set for its worst day since April 3, if losses hold

** Fourth-quarter gross margin fell 30 basis points, hurt by a $50 million impact from the import duties

** Co expects a $60 million impact from tariffs in the first half of 2026

** "The larger, more mature AE brand has yet to see the same benefits, despite marketing efforts"- BITG

** "The profit flow for this year is more weighted in the second half of the year, adding more back half focus," Jefferies analyst says, adding that it creates "range-bound" shares, until more opportunity for underlying profit emerges

** 13 analysts rate the stock "hold" on average; median PT is $25 - data compiled by LSEG

** As of last close, AEO is down ~15% this year

 (Reporting by Akriti Shah and Sanskriti Shekhar in Bengaluru)

 ((akriti.shah@thomsonreuters.com))