Reported results
- Total net revenue of $1.38 billion increased 8% year-over-year; total comparable sales increased 6%
- Gross profit of $672 million rose 34% from $500 million last year; gross margin of 48.7% expanded 980 basis points, including 1,300 basis points of expansion from net tariff refund benefit of $179 million
- Operating income of $211 million compared to $103 million last year; operating margin of 15.3% compared to 8.0% last year, with net tariff refund benefit of $161 million driving 1,170 basis points of expansion
- Diluted earnings per share of $0.79 compared to $0.45 last year
- Aerie comparable sales grew 19%; American Eagle comparable sales decreased 1%
- SG&A expenses of $408 million increased 19% and 290 basis points to a rate of 29.6%, including $18 million (130 basis points) of tariff refund-related incentive compensation expense
Guidance
- Fiscal Year 2026 Operating Income guidance: $540 million to $550 million, inclusive of net tariff refund benefit
- Third Quarter 2026 Comparable Sales: +Mid-to-High Single Digits
- Fiscal Year 2026 Comparable Sales: +Mid Single Digits
- Third Quarter 2026 Gross Margin: Flat YoY
- Fiscal Year 2026 Gross Margin: Up YoY
- Third Quarter 2026 SG&A: +High-Single Digits
- Fiscal Year 2026 SG&A: +Low-Double Digits
- Third Quarter 2026 Operating Income: $110 million to $115 million
- Third Quarter 2026 Depreciation and Amortization: $55 million
- Fiscal Year 2026 Depreciation and Amortization: Approximately $215 million
- Capital expenditures for fiscal year 2026 expected to be in the range of $250 million to $260 million
Notes
Results include significant impact from IEEPA tariff refunds: company received $196 million in tariff refunds during the second quarter including interest; accrued $35 million of incremental incentive compensation; recorded $45 million of interest expense related to sale of certain tariff refund claims. All guidance includes the impact of IEEPA tariff refunds.
Price and volatility reaction
The stock moved -14.0% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -26.4 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 16.89 | 2026-09-09 |
| Close after release | 14.53 | 2026-09-10 |
| Realised move | -14.0% | close to close |
| 30d ATM IV change | -26.4 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-09 (8-K, Item 2.02). Read the original filing on sec.gov.