American Eagle Outfitters, Inc. (AEO) Q2 FY2026 earnings

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).

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.