American Eagle Q1 Revenue Rises 10% to $1.2B; Aerie Sales Up 34%
AEO•American Eagle reported Q1 revenue of $1.2B, a 10% increase year-over-year, and operating income of $28M, above guidance, while Aerie revenue surged 34% to $481M. The company raised gross margin to 38.2%, returned $74M to shareholders, and forecast Q2 operating income of $45–50M.
1. Q1 Financial Results
American Eagle delivered $1.2 billion in Q1 revenue, up 10% year-over-year, with operating income of $28 million surpassing guidance and EPS of $0.14. Comparable sales grew 8% overall, led by a 25% gain at Aerie while the American Eagle brand saw a 2% decline.
2. Margin Expansion and Profitability
Gross profit increased 41% to $456 million and gross margin expanded by 860 basis points to 38.2%. SG&A expenses rose 11% due to advertising investments, and the company returned $74 million to shareholders via $21 million in dividends and $53 million in buybacks.
3. Aerie Performance and Network Enhancements
Aerie’s revenue hit $481 million, marking a 34% year-over-year jump and pushing its trailing-12-month sales past $2 billion. The new Phoenix distribution center will optimize inventory placement and support further growth in direct-to-consumer channels.
4. Guidance and Full-Year Outlook
For Q2, American Eagle expects mid- to high-single-digit comparable sales growth and operating income of $45 million to $50 million. Full-year operating profit is forecast at $390 million to $410 million with CapEx of $250 million to $260 million.
