American Eagle Faces 16% EPS Decline as Ross Expands 17 New Stores
Ross Stores launched 17 new outlets across 11 states in February and March as part of a fiscal 2026 plan to open roughly 110 stores, targeting 5% unit growth. American Eagle’s fiscal 2026 outlook projects 3.6% revenue growth and a 16% earnings decline, with the past four quarters’ earnings surprises averaging 37.6%.
1. Ross Stores Expansion Plan
Ross Stores closed February and March by opening 13 Ross Dress for Less locations and four dd’s DISCOUNTS outlets across 11 states, spanning Mountain, Midwest, Northeast and key Sunbelt markets. These 17 openings kick off a broader fiscal 2026 initiative to launch about 85 Ross Dress for Less and 25 dd’s DISCOUNTS stores, targeting approximately 5% total unit growth.
2. American Eagle Fiscal 2026 Outlook
Analyst consensus for American Eagle’s fiscal 2026 calls for a 3.6% rise in revenue versus the prior year alongside a 16% drop in earnings. The company has delivered earnings that beat forecasts by an average of 37.6% over the last four quarters, reflecting stronger-than-expected profitability.
3. Competitive Implications
Ross’s accelerated off-price expansion could intensify competition for middle-income apparel shoppers, a key demographic for American Eagle. American Eagle will need to leverage its brand loyalty, product differentiation and promotional strategies to defend market share against the growing Ross footprint.