American Eagle (AFG) Q2 2026 Earnings Report
DE:AFG Q2 2026 EPS Results
- Actual EPS
- EUR 0.71
- Consensus EPS
- EUR 0.20
- Beat/Miss
- Beat by +EUR 0.51
- One Year Ago EPS
- EUR 0.40
DE:AFG Q2 2026 Revenue Results
- Actual Revenue
- EUR 1.24B
- Expected Revenue
- EUR 1.23B
- Beat/Miss
- Beat by +EUR 9.80M
- YoY Revenue Growth
- +7.53%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 09/09/2026
- Time
- After Close
- Conference Call
- Wednesday, September 9, 2026
American Eagle's next earnings date is estimated for November 24, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
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.
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.
- Second-Quarter Revenue and Comparable Sales Beat ExpectationsSecond-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.
- Aerie and OFFLINE Delivered Exceptional GrowthAerie and OFFLINE revenue grew 25% to $536 million, while comparable sales increased 19%. Growth was broad-based across channels and categories, including core apparel, intimates, activewear, sports bras, bottoms, and the Cloud Fleece franchise.
- Aerie Customer Engagement Continued to ExpandThe Aerie customer base continued to grow, and the company nearly doubled the size of its Advocate program during the quarter. Aerie Realmakers and the advocacy program were cited as important tools for attracting and engaging customers.
- Aerie Brand Awareness Provides Additional RunwayAerie brand awareness was reported at 59%, compared with approximately 76% for American Eagle. Management said the goal is to bring Aerie awareness at least equal to, or above, the level across the portfolio.
- Aerie Product Innovation and Intimates MomentumAerie's core intimates business remained strong, with market-share gains mentioned in intimates. The company launched the Float bra collection, plans additional bra innovation, and reported strong performance from sports bras, other bras, matching sets, and apparel.
- American Eagle Improved SequentiallyAmerican Eagle total revenue grew 1% and comparable sales declined 1%, an improvement from the first quarter. Men's delivered its fourth consecutive quarter of positive comparable sales, driven by strength across bottoms categories, while tops met expectations.
- American Eagle Product Areas Showed Positive TractionWomen's outfitting, tiny tops paired with oversized bottoms, cargoes, fashion bottoms, and new denim fits including wide-leg straight and low-rise received positive customer response. Management described sequential improvement in denim after pivoting toward the fits that were working.
- Marketing Strategy Is Shifting Toward ConversionAfter four quarters of investment in brand awareness, American Eagle is shifting marketing dollars toward conversion-driving tactics. The company is focusing on digital and performance marketing, store traffic, and conversion, and management said it is seeing traction from the rebalanced approach.
- Broad Brand and Marketing Investments ContinueThe company has invested in its presence at malls, campus partnerships including sorority partners, and sports marketing with global brand ambassador Lamine Yamal. AEO is also making strategic product and marketing investments ahead of its 50th anniversary in 2027.
- Operating Income and Gross Profit Increased SharplySecond-quarter operating income was $211 million versus $103 million last year. Gross profit dollars rose 34% to $672 million, and gross margin increased 980 basis points to 48.7%, including a $179 million net benefit related to tariff refunds.
- Tariff Refunds Provided a Significant BenefitThe second quarter included a net tariff refund benefit of approximately $161 million in operating income and $179 million in gross profit. The tariff refunds drove 1,300 basis points of gross-margin expansion.
- Third-Quarter Comparable Sales Outlook Remains PositiveManagement expects third-quarter 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.
- Full-Year Operating Income Guidance Remains StrongFull-year operating income is expected to be in the range of $540 million to $550 million, based on consolidated comparable sales growth in the mid-single digits.
- Back-Half Profitability Is Expected to ImproveThird-quarter operating income is expected to be $110 million to $115 million. Management said the third-quarter outlook implies a similar income result to last year, while the fourth quarter implies some operating-rate improvement and a mid- to high single-digit income increase.
- Liquidity and Shareholder ReturnsThe company ended the quarter with approximately $148 million in cash and investments and $783 million of total liquidity, including its revolver. Second-quarter CapEx totaled $66 million, and the company returned $21 million to shareholders through its quarterly dividend.
- Planned Investments in Product, Marketing, and OperationsAEO is continuing long-term investments in its business, including product, marketing, stores, distribution centers, and corporate operations. Management's second-half priorities include best-in-class products, conversion-driving marketing, inventory management, and improved margin health.
- Future SG&A Leverage TargetManagement said advertising is expected to become a leverage line item into 2027, and it is targeting SG&A leverage at a minimum at a mid-single-digit comparable sales rate and in the low to mid-single digits in total for fiscal 2027.
- Holiday and Future Product PipelineManagement expressed confidence in new product ideas, color, seasonal drops, bras, apparel, and giftable categories for the holiday season. The company is already planning products and initiatives intended to support the next back-to-school period.
DE:AFG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Nov 24, 2026 | 2026 (Q3) | 0.44- | 0.47 | ― | ― |
| Sep 09, 2026 | 2026 (Q2) | 0.200.71 | 0.4 | 75.56% (+0.30) | |
| May 28, 2026 | 2026 (Q1) | 0.110.13 | -0.26 | 148.28% (+0.39) | |
| Mar 04, 2026 | 2025 (Q4) | 0.640.75 | 0.47 | 58.49% (+0.28) | |
| Dec 02, 2025 | 2025 (Q3) | 0.390.47 | 0.43 | 10.00% (+0.04) | |
| Aug 02, 2025 | 2025 (Q2) | 0.180.40 | 0.35 | 15.38% (+0.05) | |
| May 03, 2025 | 2025 (Q1) | -0.23-0.26 | 0.3 | -185.29% (-0.56) | |
| Mar 12, 2025 | 2024 (Q4) | 0.450.47 | 0.55 | -13.11% (-0.07) | |
| Dec 04, 2024 | 2024 (Q3) | 0.420.43 | 0.44 | -2.04% (-0.01) | |
| Aug 29, 2024 | 2024 (Q2) | 0.340.35 | 0.22 | 56.00% (+0.13) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
