American Eagle Outfitters Reports $1.36 Billion Revenue, Plans Store Openings Amid Mixed Financial Performance

American Eagle Outfitters, Inc. reported a total net revenue of $1.36 billion for the 13 weeks ended November 1, 2025, marking a 6% increase from $1.29 billion in the same period last year. The company's gross profit rose to $552 million, a 5% increase year-over-year, while operating income also saw a 6% rise to $113 million. The diluted earnings per share increased to $0.53, up from $0.41 in the prior year. However, for the 39 weeks ended November 1, 2025, total net revenue remained relatively flat at $3.74 billion compared to $3.72 billion in the previous year, with net income dropping significantly to $104 million from $225 million.

The financial performance reflects a mixed picture when compared to the previous fiscal period. While revenue for the third quarter showed growth, the year-to-date figures indicate challenges, particularly in the American Eagle segment, which experienced a 2% decline in revenue. Aerie, on the other hand, reported a 4% increase in revenue, driven by higher traffic and transaction values. The overall gross margin decreased to 36.8% for the 39 weeks, down from 40.0% in the prior year, primarily due to increased promotional activity and tariffs.

Strategically, American Eagle plans to open approximately five to 15 new American Eagle stores and 45 to 50 Aerie and OFFLINE store fronts during Fiscal 2025. The company also anticipates remodeling around 90 to 100 stores in the U.S. and Canada. However, it expects to close 35 to 40 American Eagle stores and 5 to 10 Aerie stores at the end of their lease terms, primarily in North America. The company continues to focus on enhancing its omni-channel capabilities, with significant investments in technology and digital marketing.

Operationally, American Eagle's total store count increased slightly to 1,190 by the end of the reporting period, with 830 American Eagle stores and 329 Aerie stores. The company reported a decrease in cash and cash equivalents to $112.8 million from $160.2 million a year earlier, reflecting increased capital expenditures of $202.2 million, primarily for store openings and renovations. The company also executed a significant share repurchase program, buying back approximately 20.4 million shares, which contributed to a reduction in diluted shares outstanding.

Looking ahead, American Eagle remains cautious about macroeconomic conditions, including inflation and changing consumer spending behaviors, which could impact future performance. The company is committed to optimizing its operations and managing costs while continuing to invest in growth initiatives. The outlook for the upcoming quarters will depend on the effectiveness of these strategies and the overall economic environment.