American Eagle Outfitters, Inc.AEO
NYSE • Consumer Cyclical
$15.39
P/E
13.39
PEG
—
FCF Yield
—
Rev Growth YoY
+9.7% YoY
Gross Margin
34.0%
Health Score
7/10
D/E Ratio
1.02
Confidence
LOW
Business Snapshot
American Eagle Outfitters is an apparel retailer operating under the American Eagle and Aerie brands, focused on casual clothing and accessories. It operates in the competitive specialty apparel market, positioning itself as a lifestyle brand targeting young adults. With TTM revenue of $5.50 billion, AEO is a mid-cap company within the retail sector. Its defining characteristic is a strong brand identity and direct-to-consumer channel, though it faces intense competition from both traditional retailers and fast-fashion e-commerce players.
Financial Health
Gross margin fell from 36.6% to 34.0% year-over-year, reflecting cost pressures or promotional activity. Net margin is not reliably reported due to a data anomaly...
Risk Assessment
- MARGIN EROSION — Gross margin contracted from 36.6% to 34.0% year-over-year, squeezing profitability.
- EARNINGS DECLINE — Net income fell 15.8% despite revenue growth, indicating cost or margin challenges.
- EARNINGS QUALITY — One of the last four quarters (Q4 2025-05) reported a net loss of -$64.90M, raising concerns about earnings consistency.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- ANALYST SENTIMENT — Only 5% of analysts rate the stock a buy, with 62% hold, suggesting limited institutional conviction....