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Home»Economics»American Eagle back in the black despite ‘macroeconomic uncertainty’
Economics

American Eagle back in the black despite ‘macroeconomic uncertainty’

By CharlotteMay 30, 20262 Mins Read
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Group net revenue was also up 10% year on year to $1.2bn (£890.2m) during the quarter.

The group’s intimate apparel brand Aerie achieved record first quarter revenue, up 25% to $480.8m (£3565m). However, at the American Eagle brand, revenues were down 2.1% to $678.5m (£503.7m).

Revenues at across the group’s “other” segment – which includes Aerie’s activewear diffusion line Offline by Aerie, premium menswear brand Todd Snyder and conscious fashion brand Unsubscribed – was also down 18.2% to $36m (£26.7m).

Gross profit topped $456.2m (£338.6m), up 41% year on year, while gross margin reached 38.2%, an increase of 860 basis points compared with the same period last year.

American Eagle expects operating profit of between $390m (£289.5) and $410m (£304.3m) for fiscal 2026.

Jay Schottenstein, American Eagle Outfitters executive chairman and chief executive officer, said: “We entered 2026 with strong momentum, delivering double-digit top-line growth and operating income ahead of guidance.

“This quarter reflected the strength of our portfolio and the power of Aerie. Driven by compelling product assortments and a deep emotional connection with customers, the brand achieved exceptional multi-channel growth and profitability, further amplified by the continued relevance of the ‘100% Aerie REAL’ campaign. While results at American Eagle were mixed, our teams are moving decisively to reignite the women’s business and strengthen product execution and brand positioning.

“Looking ahead, ​our priorities are ​clear. ​Despite continued ​consumer ​and macroeconomic ​uncertainty, we ​remain confident ​in our ability to navigate near-term ​headwinds. We are ​focused on ​operational excellence and disciplined ​execution to drive long-term ​value ​for ​AEO [American Eagle Outfitters] and our shareholders.”



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