American Eagle (AEO) Falls 8.4% Ahead of Earnings

We recently published 10 Firms Facing a Rough March So Far. American Eagle Outfitters Inc. (NYSE:AEO) was one of the worst performers on Monday.

American Eagle dropped its share prices by 8.42 percent on Monday to close at $22.50 apiece, as investors unloaded portfolios ahead of the release of its earnings performance this week.

According to the company, it would conduct an earnings call to discuss its financial and operating highlights for the fourth quarter and full-year 2025 period after market close on Wednesday, March 4.

For the period, American Eagle Outfitters Inc. (NYSE:AEO) is expecting to report an 8 to 9 percent growth in comparable sales versus the fourth quarter of 2024. It also raised its operating income guidance to a range of $167 million to $170 million, versus $155 million to $160 million previously. It also expects to incur a net tariff impact of approximately $50 million.

American Eagle (AEO) Falls 8.4% Ahead of Earnings

For the full-year period, comparable sales are expected to grow by low single digits, while operating income is targeted to hit $303 million to $308 million. Net tariff impact is expected to be at $70 million.

Last month, American Eagle Outfitters Inc. (NYSE:AEO) already hinted at a strong comparable sales performance for the fourth quarter of 2025, with the last three months up to January 3, 2026, already up by high single digits.

It said that sales trends across brands and channels all turned positive, with the Aerie brand alone jumping by low twenties, while the American Eagle brand was up by low single digits.

“Momentum continued in the fourth quarter with record December sales fueled by the power of our brands, with particularly strong growth at Aerie and Offline and sequential growth at American Eagle. Our customers embraced new product collections and responded to our latest marketing initiatives, with strength continuing in the post-holiday period. We look forward to building on this positive trajectory with new customer-inspired collections, as we remain focused on creating value for our shareholders,“ American Eagle Outfitters Inc. (NYSE:AEO) CEO Jay Schottenstein said.

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