AEONEUTRAL

AEO Gross Margin Analysis

33.9%

Higher than 49% of Consumer Cyclical sector peers

Updated 2075h ago·SEC filings & market data

Key Takeaway

American Eagle Outfitters' gross margin of 33.9% means that for every dollar of revenue, the company keeps about 34 cents after accounting for the direct costs of producing its clothing, with the rest going to those costs.

Sector Performance

49th percentile

AEO

33.9%

Sector Median

34.2%

Sector Avg

27.7%

Prior Period

38.2%(Jun 2026)

↓ Declining

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Deep Analysis

This margin sits below the sector median of 36.6% for consumer cyclical companies, placing the firm at the 44th percentile among its industry peers. The metric shows no available trend data, as year-over-year and quarter-over-quarter changes are not provided, and only a single historical value of 33.9% is recorded for the last eight quarters. A below-median gross margin combined with an absent trend offers limited insight; it suggests the company may face pricing pressure or higher input costs compared to peers, but without trend direction the risk or opportunity cannot be clearly assessed. This metric does not contradict the overall NEUTRAL verdict, as the level is slightly weaker than the peer median yet not severely out of line, and the lack of trend leaves the stock without a clear positive or negative signal from this measure.

Frequently Asked Questions

What does the Gross Margin tell investors about AEO?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AEO's Gross Margin compare to its sector?

AEO's Gross Margin of 33.9% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 49th percentile.

Who are AEO's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: CHWY (30.1%), W (30.0%), JACK (29.9%), ROST (29.6%), CAVA (25.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.