American Eagle Outfitters' gross profit rises 9% to $651 million in Q4

The company’s total net revenue of $1.8 billion increased 10 per cent to last year. Total comparable sales increased 8 per cent in the fourth quarter of fiscal 2025, on top of 3 per cent comp growth last year. Aerie comparable sales increased 23 per cent on a 6 per cent increase last year. American Eagle’s comparable sales grew 2 per cent following 1 per cent growth last year.

In 2025, the company’s total net revenue of $5.5 billion increased 3 per cent versus last year. Total comparable sales increased 3 per cent, on top of 4 per cent comp growth last year. Aerie comparable sales increased 9 per cent on 5 per cent growth last year. American Eagle’s comparable sales were flat following 3 per cent growth last year.

Gross profit of $2.0 billion decreased 3 per cent. Gross margin of 36.9 per cent decreased 230 basis points largely reflecting an inventory write-down taken in the first quarter, higher markdowns and the impact of tariffs, partially offset by business improvement and cost efficiencies in the second half of the year.

“I am extremely pleased with the strong execution in the back half of the year, which reignited growth across our brands and channels. Building on the improved trends beginning last summer, we achieved a record fourth quarter and holiday period, with double digit growth at Aerie and OFFLINE and solid, positive performance at American Eagle. Compelling new product collections, supported by fresh marketing campaigns, led to higher demand trends in the quarter. I want to thank our associates for their resilience and outstanding execution to deliver a strong finish to 2025,” Jay Schottenstein, executive chairman of the board and chief executive officer, AEO Inc., said.

“We enter 2026 from a position of strength with the goal of building on this year’s successes. The first quarter is off to a positive start and we remain focused on investing in our brands and driving additional corporate savings and efficiency across the business. I’m confident that our strategic actions will lead to long-term profitable growth and shareholder value creation,” he concluded.

Fibre2Fashion News Desk (RR)