American Eagle Forecasts Mid-Single-Digit Sales Growth Above Wall Street Estimates

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3.5.2026

Quick Facts

American Eagle forecasts mid-single-digit comparable sales growth for fiscal 2026, above analysts’ 2.92% estimate
Q4 adjusted earnings per share hit $0.84, beating consensus by 17%, while revenue reached $1.8 billion
Stock gained 94% over the past year, closing at $22.24 with analyst price targets implying 16% upside

American Eagle Outfitters forecast annual sales growth above Wall Street estimates on Wednesday, driven by marketing campaigns that attracted wealthy shoppers to its apparel and accessories.

The retailer expects comparable sales to rise in the mid-single-digit percentage range for fiscal 2026. Analysts had estimated growth of 2.92%.

American Eagle reported fourth-quarter adjusted earnings per share of $0.84, surpassing the consensus estimate of $0.72 by nearly 17%. Revenue reached $1.8 billion, beating forecasts of $1.74 billion.

The company’s total revenue hit an all-time quarterly high of $1.8 billion, up 10% year-over-year. Comparable sales increased 8% overall, with the Aerie brand and OFFL/NE up 23% and the American Eagle brand up 2%.

CEO Jay Schottenstein credited strategic marketing initiatives for the strong performance. “Our partnership fueled the most memorable campaign in our history and was one of the contributing factors to our business success in the second half of last year,” he said, referring to campaigns featuring Sydney Sweeney and Martha Stewart.

The marketing efforts targeted younger, higher-earning Gen Z shoppers. Michael Gunther from Consumer Edge noted that “the strength among the highest income cohort is particularly notable given that AEO historically under-indexes to this group.”

For the full fiscal year 2026, American Eagle anticipates operating income ranging from $390 million to $410 million. First-quarter comparable sales are expected to grow in the high single-digit range.

The retailer faces headwinds from tariffs, which impacted fourth-quarter gross margin by 30 basis points due to a $50 million hit from import duties. The company expects a $60 million tariff impact in the first half of 2026.

Store performance remains challenging, with online sales expected to be positive in the first quarter while store sales are projected to decline. American Eagle plans to close 25-30 lower-productivity stores in 2026.

Shares rose 0.99% in after-hours trading to $22.46, extending a 94% gain over the past year. The stock holds an 11-analyst consensus rating of neutral with a mean price target of $25.78.