American Eagle Outfitters capped fiscal 2025 with a standout fourth quarter and holiday season, as its growth engines—Aerie and OFFLINE—delivered double‑digit comparable gains and pushed the group to an American Eagle record Q4 FY25 performance.
For the quarter ended 31 January 2026, AEO reported total net revenue of $1.8bn, a 10% increase versus the year-ago period. Comparable sales rose 8%, accelerating from the 3% comp growth posted in the prior year’s fourth quarter. Aerie was the clear pace-setter, with comparable sales surging 23%, while OFFLINE also produced robust double‑digit growth. The American Eagle brand continued to move forward as well, logging a 2% increase in comparable sales.
AEO executive chairman and chief executive officer Jay Schottenstein credited a sharper product offering and refreshed marketing for the improved demand trends that defined the back half of the year. “I am extremely pleased with the strong execution in the back half of the year, which reignited growth across our brands and channels. Building on the improved trends beginning last summer, we achieved a record fourth quarter and holiday period, with double digit growth at Aerie and OFFLINE and solid, positive performance at American Eagle. Compelling new product collections, supported by fresh marketing campaigns, led to higher demand trends in the quarter. I want to thank our associates for their resilience and outstanding execution to deliver a strong finish to 2025.”
Q4 FY25 profitability and costs
Gross profit in the quarter increased to $651m from $599m a year earlier, although gross margin slipped 30 basis points to 37%. AEO said higher markdown activity weighed on margins, but that pressure was partly absorbed by operational efficiencies and favourable foreign-exchange movements.
SG&A expenses rose 4% year on year to $418m. On a GAAP basis, operating profit came in at $96m, reflecting $84m in impairment and restructuring charges tied to logistics business exits and store impairments. Diluted earnings per share were $0.50 for the quarter, compared with $0.54 in Q4 FY24.
Full-year FY25 results
For the full fiscal year, AEO generated total net revenue of $5.5bn, up 3% year on year. Comparable sales increased 3%, following 4% growth in the prior year. Gross profit for FY25 was $2.0bn, down 3%, and gross margin fell 230 basis points to 36.9%. The company attributed the margin decline primarily to an inventory write-down in the first quarter, higher markdowns, and continued tariff impacts.
GAAP operating income for FY25 was $226m, translating to diluted EPS of $1.09. AEO ended the year with total inventory of $702m, with units up 3%.
2026 outlook
Looking to fiscal 2026, management expects momentum to carry into the new year. AEO is forecasting high single‑digit comparable sales growth in the first quarter and mid‑single‑digit growth for the full year, alongside improved gross margins.
Operating income is projected at $20m to $25m for Q1 FY26, while full‑year operating income is expected to be $390m to $410m. Capital expenditures for the year are planned at $250m to $260m.
Schottenstein said the company is approaching the year with confidence after the American Eagle record Q4 FY25 finish. “We enter 2026 from a position of strength with the goal of building on this year’s successes. The first quarter is off to a positive start and we remain focused on investing in our brands and driving additional corporate savings and efficiency across the business. I’m confident that our strategic actions will lead to long-term profitable growth and shareholder value creation,” Schottenstein added.