American Eagle Outfitters Shares Drop 12.7% After Q4 EBITDA Miss and Margin Decline
American Eagle Outfitters reported fourth-quarter revenue of $1.76 billion, up 9.7% year-on-year, and adjusted EPS of $0.84. However, adjusted EBITDA of $148.4 million fell 34.2% short of projections and operating margin shrank to 5.4% from 8.9%, triggering a 12.7% share slide.
1. Q4 Financial Results
American Eagle Outfitters delivered fourth-quarter revenue of $1.76 billion, a 9.7% year-over-year increase, and posted adjusted EPS of $0.84. Despite top-line strength, adjusted EBITDA totaled $148.4 million, falling 34.2% short of projections.
2. Cost Pressures and Stock Impact
Rising marketing and administrative expenses drove operating margins down to 5.4% from 8.9% a year earlier, eroding profitability and prompting a 12.7% single-session share price plunge. The sharp decline underscores investor concerns about the company’s cost structure despite solid sales growth.