American Eagle Stock Falls Amid Weakness at Namesake Stores
American Eagle Outfitters (AEO) stock dropped nearly 15% following a disappointing quarterly report that revealed weaker-than-expected comparable sales growth, primarily due to declining performance at its namesake stores. While the company reported earnings per share of $0.79 and revenue of $1.38 billion—both above estimates—the overall sales figures were below consensus expectations. The retailer raised its full-year operating profit forecast but noted that without a nearly $200 million benefit from tariff refunds, it would have been a downward revision. Executives also warned during an earnings call about continued challenges at the American Eagle brand in the second half of 2026, including lower sales and increased discounting. Analysts adjusted their price targets but remain optimistic long-term due to strong performance from Aerie, which saw comparable sales rise by nearly 19%. Despite this, shares have lost almost half their value since January.
Tickers: $AEO
Topics: comparable sales profit forecast retail stock decline