A Look Ahead: American Eagle Outfitters's Earnings Forecast

American Eagle Outfitters AEO will release its quarterly earnings report on Thursday, 2025-05-29. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate American Eagle Outfitters to report an earnings per share (EPS) of $0.11.

American Eagle Outfitters bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.03, leading to a 4.1% drop in the share price on the subsequent day.

Here's a look at American Eagle Outfitters's past performance and the resulting price change:

Stock Performance

Shares of American Eagle Outfitters were trading at $11.1 as of May 27. Over the last 52-week period, shares are down 50.16%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Observations about American Eagle Outfitters

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on American Eagle Outfitters.

Analysts have provided American Eagle Outfitters with 14 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $13.29, suggesting a potential 19.73% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of Victoria's Secret, Buckle and Foot Locker, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Victoria's Secret, with an average 1-year price target of $24.18, suggesting a potential 117.84% upside.
• Analysts currently favor an Neutral trajectory for Buckle, with an average 1-year price target of $41.0, suggesting a potential 269.37% upside.
• Analysts currently favor an Neutral trajectory for Foot Locker, with an average 1-year price target of $19.95, suggesting a potential 79.73% upside.

Summary of Peers Analysis

The peer analysis summary presents essential metrics for Victoria's Secret, Buckle and Foot Locker, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

American Eagle Outfitters ranks in the middle among peers for Consensus rating. It ranks at the bottom for Revenue Growth and Gross Profit, while it ranks in the middle for Return on Equity.

Unveiling the Story Behind American Eagle Outfitters

American Eagle Outfitters Inc is a specialty retailer. The company is engaged in the retail of apparel and accessories with company stores in the United States, Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has its online business. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel, accessories, and personal care products for women and men. Geographically, it generates the majority of its revenue from the United States.

American Eagle Outfitters's Economic Impact: An Analysis

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining American Eagle Outfitters's financials over 3 months reveals challenges. As of 31 January, 2025, the company experienced a decline of approximately -4.42% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: American Eagle Outfitters's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 6.5%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.94%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): American Eagle Outfitters's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.76% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.82.

To track all earnings releases for American Eagle Outfitters visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.