American Eagle Outfitters (AEO)
NYSE:AEO
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American Eagle
(NYSE:AEO)
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Rating:63Neutral
Price Target:
$18.50
▼(-4.74% Downside)
Action:Reiterated
Date:06/11/26
The score is primarily held back by weak recent TTM cash flow generation and higher leverage despite improving profitability. Offsetting factors include favorable valuation (low P/E and solid dividend) and a generally positive earnings outlook led by Aerie and strong recent margin performance, while technicals remain mixed with the stock still below longer-term moving averages.
Positive Factors
Aerie Growth & Customer Acquisition
Aerie is a durable growth engine: rapid same-store and total sales expansion plus meaningful new-customer adds create scale benefits (higher AOV, brand loyalty, network effects). That scale supports margin leverage, marketing efficiency, and lasting market-share gains across channels over the medium term.
Negative Factors
Weak Cash Flow Generation
TTM deterioration in operating and free cash flow signals working-capital and timing stresses that undermine the company’s ability to fund dividends, buybacks, or reinvest without relying on borrowings. Persistent weak cash conversion raises refinancing and flexibility risks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Aerie Growth & Customer Acquisition
Aerie is a durable growth engine: rapid same-store and total sales expansion plus meaningful new-customer adds create scale benefits (higher AOV, brand loyalty, network effects). That scale supports margin leverage, marketing efficiency, and lasting market-share gains across channels over the medium term.
Read all positive factors
American Eagle Key Performance Indicators (KPIs)
Any
Store Count
Tracks the number of retail locations, reflecting the company’s physical market presence and potential for customer reach and sales growth.
Tracks the number of retail locations, reflecting the company’s physical market presence and potential for customer reach and sales growth.
Data provided by:
The Fly
The FlyAmerican Eagle (AEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.15B
Dividend Yield2.09%
Average Volume (3M)5.60M
Price to Earnings (P/E)11.2
Beta (1Y)1.25
Revenue Growth6.22%
EPS Growth65.05%
CountryUS
Employees9,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)1.65
Shares Outstanding167,573,330
10 Day Avg. Volume7,644,009
30 Day Avg. Volume5,597,609
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)2.37
Price to Sales (P/S)0.73
P/FCF Ratio8.80
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit2.23
Enterprise Value/Ebitda7.32
Forecast
1Y Price Target
$20.13Price Target Upside3.63% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)1.77
Revenue Forecast (FY)$5.79B
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 primarily makes money by selling branded merchandise directly to consumers. Its core revenue stream is net sales from retail and online transactions, including (1) American Eagle brand products such as jeans, tops, outerwear, and accessories, ...
American Eagle Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 09, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operating picture driven by exceptional Aerie performance, strong top‑line growth (+10%) and notable margin expansion (+860 bps gross margin improvement). Management acknowledges targeted weaknesses at the American Eagle banner — primarily women’s bottoms and store conversion — and near‑term headwinds from tariffs, elevated inventory costs, and higher advertising spend. However, management has clear remediation plans (assortment fixes, marketing reallocation, distribution improvements) and balance sheet and liquidity capacity to support execution. On balance, the significant growth and profitability gains led by Aerie and the company’s action plans outweigh the addressable AE challenges and tariff uncertainty.Positive Updates
Consolidated Revenue and Comparable Sales Growth
Total revenue of $1.2 billion, up 10% year‑over‑year; consolidated comparable sales +8%.
Negative Updates
American Eagle Brand Softness
AE revenue down ~2% YoY for the quarter; AE comparable sales declined (driven by store weakness) with digital flat; women's business, specifically women's bottoms and denim, underperformed and was the primary driver of AE's sales decline.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue and Comparable Sales Growth
Total revenue of $1.2 billion, up 10% year‑over‑year; consolidated comparable sales +8%.
Read all positive updates
Company Guidance
Management guided Q2 consolidated comparable sales to mid‑ to high‑single digits, with Aerie expected to continue growing in the high‑teens to low‑20s and American Eagle to be flat to down low‑single digits; Q2 operating income is forecast at $45–$50 million (which includes an incremental ~$20 million tariff headwind vs. last year) and SG&A is expected to be up in the mid‑teens. They plan a 10% tariff rate in Q2 and 15% for the balance of the year, have filed roughly $190 million in tariff refund claims (anticipating about $140 million net cash benefit that is not included in guidance), and expect full‑year operating profit of $390–$410 million on consolidated comparable sales in the mid‑single digits; full‑year CapEx is planned at $250–$260 million. For context, Q1 results that inform the outlook included revenue of $1.2 billion (up 10%), consolidated comps +8%, Aerie sales +34% (Aerie comps +25%), gross profit $456 million (gross margin 38.2%, +860 bps), ending inventory up 27% in cost (units +5%), Q1 CapEx $61 million, $74 million returned to shareholders in Q1, $103 million cash and ~ $620 million total liquidity.American Eagle Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.60B | 5.50B | 5.33B | 5.26B | 4.99B | 5.01B |
| Gross Profit | 1.95B | 1.81B | 1.88B | 1.81B | 1.54B | 1.83B |
| EBITDA | 591.92M | 465.46M | 658.86M | 477.02M | 404.98M | 756.43M |
| Net Income | 280.41M | 191.98M | 329.38M | 170.04M | 125.14M | 419.63M |
Balance Sheet | ||||||
| Total Assets | 4.08B | 4.04B | 3.83B | 3.56B | 3.42B | 3.79B |
| Cash, Cash Equivalents and Short-Term Investments | 103.29M | 238.92M | 358.96M | 454.09M | 170.21M | 434.77M |
| Total Debt | 1.87B | 1.73B | 1.45B | 1.19B | 1.37B | 1.81B |
| Total Liabilities | 2.44B | 2.35B | 2.06B | 1.82B | 1.82B | 2.36B |
| Stockholders Equity | 1.64B | 1.69B | 1.77B | 1.74B | 1.60B | 1.42B |
Cash Flow | ||||||
| Free Cash Flow | 14.94M | 195.39M | 254.26M | 406.27M | 145.92M | 69.82M |
| Operating Cash Flow | 84.41M | 456.18M | 476.80M | 580.71M | 406.30M | 303.67M |
| Investing Cash Flow | -38.21M | -202.65M | -217.51M | -287.43M | -261.38M | -594.60M |
| Financing Cash Flow | 299.63M | -326.85M | -301.91M | -109.47M | -407.89M | -125.20M |
American Eagle Technical Analysis
Positive
19.42
Price Trends
17.22
Positive
19.22
Negative
19.49
Negative
Market Momentum
0.29
Negative
64.80
Neutral
88.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEO, the sentiment is Positive. The current price of 19.42 is above the 20-day moving average (MA) of 16.72, above the 50-day MA of 17.22, and below the 200-day MA of 19.49, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 64.80 is Neutral, neither overbought nor oversold. The STOCH value of 88.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEO.
American Eagle Risk Analysis
American Eagle disclosed 32 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.59B | 14.27 | 17.64% | ― | 11.23% | 8.96% | |
72 Outperform | $4.02B | 8.25 | 36.89% | ― | 5.13% | 0.95% | |
68 Neutral | $2.33B | 10.35 | 47.36% | 6.82% | 7.10% | 12.26% | |
63 Neutral | $3.15B | 11.25 | 17.24% | 2.09% | 6.22% | 65.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | ― | ― | ― | ― | ― | ― |
* Consumer Cyclical Sector Average
AEO
American Eagle
18.79
9.40
100.02%
ANF
Abercrombie Fitch
90.57
15.57
20.76%
BKE
Buckle
45.29
4.21
10.24%
FL
Foot Locker
―
―
―
URBN
Urban Outfitters
77.00
6.18
8.73%
American Eagle Corporate Events
Business Operations and StrategyPrivate Placements and Financing
American Eagle Extends and Amends Revolving Credit Facility
Positive
Jun 10, 2026
On June 4, 2026, American Eagle Outfitters, Inc. amended its $700 million senior secured asset-based revolving credit facility, originally established in 2022, extending the facility’s maturity from June 24, 2027, to June 4, 2031. The amendm...
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.