American Eagle Gains After Earnings as Estimates Move Lower
Shares climbed about 23.7% in the month after American Eagle’s latest report, which included tariff refunds and a higher full-year outlook.
Key takeaways
- American Eagle shares gained about 23.7% in the month after its latest earnings report.
- Fiscal second-quarter earnings were 79 cents per share, above the 21-cent consensus estimate.
- The company forecast fiscal 2026 operating income of $540 million to $550 million, including tariff-refund benefits.
- Consensus estimates for American Eagle shifted down 12.5% over the past month.
American Eagle Outfitters shares rose about 23.7% in the month after its latest earnings report, according to the article. As of Friday afternoon, the stock traded at $18.13, up 1.6% from the previous close.
The retailer reported fiscal second-quarter earnings of 79 cents per share, above the 21-cent consensus estimate. Revenue increased 7.5% to $1.38 billion, while comparable sales rose 6%.
A net $179 million tariff-refund benefit contributed 1,300 basis points to gross-margin expansion, which brought the margin to 48.7%. Aerie revenue grew 24.9%, while American Eagle brand revenue increased 0.7%; comparable sales fell 1% for the American Eagle brand.
For fiscal 2026, the company forecast operating income of $540 million to $550 million, including tariff-refund benefits. It expects comparable sales to rise by a mid-single-digit rate for the year, and by a mid-to-high single-digit rate in the third quarter.
Despite the share gain, consensus estimates shifted down 12.5% over the past month, the article said.
This article was produced with the help of AI technology. Source: Yahoo Finance
