American Eagle Outfitters Reports $5.547 Billion Revenue with 4% Increase for Fiscal Year Ending January 31, 2026

American Eagle Outfitters, Inc. reported a total net revenue of $5.547 billion for the fiscal year ending January 31, 2026, marking an increase of $219 million, or 4%, compared to $5.329 billion in the previous fiscal year. The company's comparable sales rose by 3%, with Aerie brand sales increasing by 9%, while American Eagle brand sales remained flat. However, gross profit decreased by 3% to $2.025 billion, resulting in a gross margin of 36.5%, down from 39.2% in the prior year. Operating income also saw a significant decline, dropping 47% to $226.2 million, with net income attributable to AEO decreasing by 42% to $192 million, translating to diluted earnings per share of $1.09.

The company experienced several operational changes during the fiscal year, including the closure of its Quiet Platforms business, which resulted in $59 million in impairment and restructuring charges. Additionally, the company recorded $42.6 million in charges related to corporate operations and store impairments. These restructuring efforts were part of a broader strategy to optimize the supply chain and align operations with strategic priorities. As of January 31, 2026, American Eagle operated 1,168 stores, a slight decrease from 1,172 stores the previous year, with plans to remodel approximately 60 stores in the upcoming fiscal year.

American Eagle's digital sales represented 39% of total revenue, reflecting a 7% increase driven by higher transaction volumes and increased traffic. The company continues to invest in its omni-channel capabilities, enhancing customer engagement through its loyalty program, Real Rewards, which incentivizes higher spending and frequent engagement. The company also plans to open 5 to 10 new American Eagle stores and 25 to 40 Aerie and OFFLINE stores during Fiscal 2026, indicating a commitment to geographic expansion and brand amplification.

Looking ahead, American Eagle anticipates ongoing challenges from macroeconomic conditions, including inflation and trade uncertainties, which could impact consumer spending and profitability. The company is focused on maintaining financial discipline and optimizing operational capabilities to navigate these challenges. The Board of Directors has declared a quarterly dividend of $0.125 per share, reflecting a commitment to returning value to shareholders while balancing future cash requirements and capital expenditures. The company expects to fund its capital expenditures, projected between $250 million and $260 million for Fiscal 2026, through current cash holdings and cash generated from operations.