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American Eagle
(NYSE:AEO)
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Rating:65Neutral
Price Target:
$19.00
▲(13.57% Upside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by improved profitability and ROE, supported by an attractive low P/E and a solid dividend yield. These positives are balanced by weak price momentum (below key moving averages with negative MACD) and fundamental risks around softer operating cash flow conversion, increasing leverage, and ongoing markdown/inventory work in the American Eagle banner despite generally positive guidance.
Positive Factors
Aerie and OFFLINE Growth
Aerie and OFFLINE are delivering broad-based growth across apparel, intimates, and activewear, with gains across channels and categories. This supports portfolio diversification, gives AEO a stronger growth engine, and provides room for continued expansion as brand awareness improves.
Negative Factors
American Eagle Brand Weakness
The core American Eagle banner remains weaker than Aerie, with negative comparable sales and inconsistent category performance. Prolonged softness could constrain consolidated growth, require additional marketing or promotions, and make the company more dependent on the faster-growing Aerie business.
Read all positive and negative factors
Positive Factors
Negative Factors
Aerie and OFFLINE Growth
Aerie and OFFLINE are delivering broad-based growth across apparel, intimates, and activewear, with gains across channels and categories. This supports portfolio diversification, gives AEO a stronger growth engine, and provides room for continued expansion as brand awareness improves.
Read all positive factors
American Eagle Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals the profitability of each business segment, highlighting which areas contribute most to the bottom line and where there might be opportunities or challenges.
Reveals the profitability of each business segment, highlighting which areas contribute most to the bottom line and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyAmerican Eagle (AEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.03B
Dividend Yield2.81%
Average Volume (3M)6.92M
Price to Earnings (P/E)8.9
Beta (1Y)1.21
Revenue Growth8.21%
EPS Growth89.24%
CountryUS
Employees45,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)2.00
Shares Outstanding167,573,330
10 Day Avg. Volume5,328,715
30 Day Avg. Volume6,917,821
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)2.37
Price to Sales (P/S)0.73
P/FCF Ratio20.54
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit2.21
Enterprise Value/Ebitda6.68
Forecast
1Y Price Target
$18.80Price Target Upside12.37% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)2.14
Revenue Forecast (FY)$5.85B
American Eagle Business Overview & Revenue Model
Company Description
American Eagle Outfitters, Inc. (AEO) operates as a distinct fashion and lifestyle retail enterprise, offering a wide array of clothing, accessories, and personal care items. Its primary offerings are sold under the established American Eagle and ...
How the Company Makes Money
AEO makes money primarily by selling branded apparel and accessories directly to consumers through two main channels: (1) physical retail stores and (2) online/digital commerce. Revenue is generated at the point of sale from merchandise transactio...
American Eagle Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call was broadly positive, led by Aerie and OFFLINE's 25% revenue growth and 19% comparable sales growth, consolidated revenue growth, strong reported operating income, and positive back-half outlook. However, American Eagle remained challenged with a 1% comparable-sales decline, ongoing markdown and inventory work, flat expected back-half growth, and a modest reduction to prior guidance. Highlights significantly outweighed the lowlights.Positive Updates
Second-Quarter Revenue and Comparable Sales Beat Expectations
Second-quarter revenue was $1.4 billion, up 8% from last year, with comparable sales growth of 6%. The quarter came in at the high end of management's expectations and guidance.
Negative Updates
American Eagle Comparable Sales Remained Negative
American Eagle comparable sales declined 1% in the second quarter. Management said the brand is moving in the right direction but still has work to do to restore consistent growth across categories.
Read all updates
Q2-2026 Updates
Positive
Negative
Second-Quarter Revenue and Comparable Sales Beat Expectations
Second-quarter revenue was $1.4 billion, up 8% from last year, with comparable sales growth of 6%. The quarter came in at the high end of management's expectations and guidance.
Read all positive updates
Company Guidance
For the third quarter, the company expects comparable sales growth in the mid- to high single digits, with Aerie and OFFLINE continuing in the high teens to 20% range and American Eagle approximately flat; gross margin is expected to be similar to last year, operating income is expected to be in the range of $110 million to $115 million, and SG&A expense is expected to be up in the high single digits. The tariff rate assumption for the rest of the year reflects the Section 301 tariffs implemented in late June. For the full year, the company expects operating income in the range of $540 million to $550 million based on consolidated comparable sales growth in the mid-single digits, with full year gross margin up year-over-year. Fourth quarter gross margin is expected to show modest improvement, with Aerie in the high single to low double range and American Eagle flat; the 12.5 rate reflects full IEEPA tariffs, and fourth-quarter operating income implies a mid- to high single-digit income increase.American Eagle Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
61
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.70B | 5.50B | 5.33B | 5.26B | 4.99B | 5.01B |
| Gross Profit | 2.12B | 1.81B | 1.88B | 1.81B | 1.54B | 1.83B |
| EBITDA | 702.82M | 465.46M | 663.96M | 476.25M | 404.70M | 764.02M |
| Net Income | 336.86M | 191.98M | 329.38M | 170.04M | 125.14M | 419.63M |
Balance Sheet | ||||||
| Total Assets | 4.28B | 4.04B | 3.83B | 3.56B | 3.42B | 3.79B |
| Cash, Cash Equivalents and Short-Term Investments | 147.95M | 238.92M | 358.96M | 454.09M | 170.21M | 434.77M |
| Total Debt | 1.92B | 1.73B | 1.45B | 1.19B | 1.37B | 1.81B |
| Total Liabilities | 2.52B | 2.35B | 2.06B | 1.82B | 1.82B | 2.36B |
| Stockholders Equity | 1.76B | 1.69B | 1.77B | 1.74B | 1.60B | 1.42B |
Cash Flow | ||||||
| Free Cash Flow | 168.48M | 195.39M | 254.26M | 406.27M | 145.92M | 69.82M |
| Operating Cash Flow | 238.15M | 456.18M | 476.80M | 580.71M | 406.30M | 303.67M |
| Investing Cash Flow | -42.35M | -202.65M | -217.51M | -287.43M | -261.38M | -594.60M |
| Financing Cash Flow | 157.50M | -326.85M | -301.91M | -109.47M | -407.89M | -125.20M |
American Eagle Technical Analysis
Neutral
16.73
Price Trends
16.68
Positive
16.86
Positive
18.59
Negative
Market Momentum
0.45
Negative
55.78
Neutral
39.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEO, the sentiment is Neutral. The current price of 16.73 is below the 20-day moving average (MA) of 17.01, above the 50-day MA of 16.68, and below the 200-day MA of 18.59, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 55.78 is Neutral, neither overbought nor oversold. The STOCH value of 39.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AEO.
American Eagle Risk Analysis
American Eagle disclosed 33 risk factors in its most recent earnings report. American Eagle reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Eagle Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.19B | 12.71 | 39.59% | 6.86% | 4.73% | 8.69% | |
79 Outperform | $7.08B | 13.05 | 20.72% | ― | 11.01% | 24.97% | |
69 Neutral | $8.00B | 6.68 | 33.13% | 3.02% | 1.05% | 44.82% | |
65 Neutral | $3.03B | 8.89 | 20.04% | 2.81% | 8.21% | 89.24% | |
64 Neutral | $7.07B | 20.10 | 45.94% | ― | 10.35% | 146.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $226.89M | 17.64 | 4.21% | ― | 3.61% | 7189.81% |
* Consumer Cyclical Sector Average
AEO
American Eagle
17.60
2.76
18.58%
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24.71%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.