American Eagle posts record Q4 sales driven by Aerie; 2026 off to ‘good start’
American Eagle Outfitters Inc. reported a strong fourth quarter driven by skyrocketing same-store sales at its Aerie division.
Looking ahead, CEO Jay Schottenstein said the current quarter is off to a positive start.
“We enter 2026 from a position of strength with the goal of building on this year’s successes,” he said. “The first quarter is off to a positive start and we remain focused on investing in our brands and driving additional corporate savings and efficiency across the business.”
On the earnings call, executives said the company plans approximately 35 to 40 new Aerie and Offline store openings, and about 60 store remodels. It expects to close another 25 to 30 lower-productivity American Eagle stores. (Offline is the activewear-focused sub-brand of Aerie.)
Jennifer M. Foyle, president and executive creative director, American Eagle and Aerie, told analysts on the call that Offline's brand awareness is rising, and the brand has "a long runway ahead."
“As we look to accelerate the Offline business in 2026, we will be focused on expanding our footprint, engaging more customers, and delivering great product," she said.
Fourth Quarter
American Eagle reported earnings of $87.91 million, or $0.50 per share, for the quarter ended Jan. 31, compared with $104.35 million, or $0.54 per share in the year-ago period. (The recent quarter included a net tariff impact of $50 million, the company said.) Adjusted earnings per share were $0.84 compared to $0.54 last year, topping analysts estimates of $0.71 per share.
Operating income fell to $95.8 million from $142.3 million amid a $84 million of impairment and restructuring charges related to the company’s decision to shutter its Quiet Logistics subsidiary, store impairments and general corporate restructuring.
Total net revenue increased 10% to $1.8 billion, topping estimates of $1.74 billion. Total comparable sales increased 8%.
By division, Aerie comparable sales increased 23%, while American Eagle comparable sales grew 2% following 1% growth last year. (Aerie comps include Offline.)
Full Year
For the full year, American Eagle's total net revenue rose 3% to $5.5 billion. Total comparable sales increased 3%. By brand, Aerie comparable sales increased 9%. American Eagle comparable sales were flat following 3% growth last year.
Adjusted diluted earnings per share was $1.50 compared to adjusted diluted earnings per share of $1.74 last ye
“I am extremely pleased with the strong execution in the back half of the year, which reignited growth across our brands and channels,” Schottenstein said. “Building on the improved trends beginning last summer, we achieved a record fourth quarter and holiday period, with double digit growth at Aerie and Offline and solid, positive performance at American Eagle.”
The company ended the year with a total of 1,168 stores, including 805 American Eagle stores, 332 Aerie stores; 23 Todd Snyder stores and eight Unsubscribed stores.
