American Eagle Outfitters

Q2 FY2027 EarningsAEO Q2 FY27 delivered a significant beat on both top and bottom lines, driven by a one-time $196M tariff refund and robust growth in the Aerie brand. Revenue reached $1.38B (+8% YoY) vs. $1.37B expected, while diluted EPS of $0.79 far exceeded the $0.22 consensus. Aerie comparable sales surged 19%, significantly offsetting a 1% decline in American Eagle. While gross margins expanded by 980 bps to 48.7% due to the tariff recovery, underlying merchandise margins were pressured by promotional activity at American Eagle.