American Eagle Q4 EPS Beats Estimates as Revenue Jumps 10% and Margins Improve
American Eagle Outfitters reported Q4 EPS of $0.84, beating the $0.71 consensus as revenues rose 10% to $1.76 billion and comps increased 8% year over year. Aerie sales jumped 26.7% with 23% comps growth and operating margin expanded to 10.2% on cost discipline and $25 million of buybacks.
1. Q4 Earnings and Sales
American Eagle Outfitters delivered fourth-quarter adjusted EPS of $0.84, up 55.6% year over year and above the $0.71 consensus, as net revenues climbed 10% to $1.76 billion. Consolidated comps rose 8%, outperforming model expectations and reflecting stronger traffic and product demand across channels.
2. Brand Performance
The Aerie brand drove growth with revenues of $683.8 million, up 26.7% and comps up 23%, while the American Eagle brand generated $1.01 billion, a 1.8% rise with 2% comps growth. Digital sales gains and new product launches at Aerie and OFFLINE fueled the momentum.
3. Margins and Expenses
Gross profit increased 9% to $651 million, translating to a 37% margin despite a 280 bps tariff headwind and higher markdowns. SG&A rose 4% to $418 million, lifting its sales ratio by 120 bps, while adjusted operating income grew 27% to $180 million, expanding operating margin by 130 bps.
4. Shareholders and Outlook
The company ended the quarter with $238.9 million in cash, repurchased $25 million of shares, and paid $21 million in dividends. For Q1, it forecasts high-single-digit comps, gross margin improvement, SG&A up 10%, and $20–25 million in operating income, with full-year comps seen in mid-single digits.