American Eagle Outfitters reported second-quarter fiscal 2026 earnings of 79 cents per share, up from 45 cents a year ago and well above the Zacks Consensus Estimate of 21 cents, as net revenues rose 8% year over year to $1.38 billion and comparable sales increased 6%. Aerie remained the growth engine with comparable sales up 19% and revenues up 25% to $536 million, while American Eagle brand comps declined 1%. Gross profit increased 34% to $672 million and gross margin expanded 980 basis points to 48.7%, though the quarter included a $179 million net tariff-refund benefit in gross profit that contributed 1,300 basis points to that margin expansion, and operating income rose to $211 million from $103 million on a $161 million net tariff-refund benefit. Management expects fiscal 2026 comparable sales to rise in the mid-single digits with gross margin expanding and operating income of $540-$550 million, and for the third quarter it projects comparable sales up mid-to-high single digits with operating income of $110-$115 million. The company ended the quarter with approximately $148 million in cash and investments and $783 million of total liquidity, and returned $21 million through its quarterly dividend.
American Eagle Outfitters IncQ2 EPS of 79 cents beat estimates and FY26 operating income guidance of $540-$550M was issued, driven partly by a $179M tariff-refund benefit.
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