American Eagle Stock Slumps on Signs of Weakness at Namesake Brand

American Eagle Stock Slumps on Signs of Weakness at Namesake Brand

Thu, September 10, 2026 at 6:40 PM GMT+3 2 min read

• AEO +3.37%

Key Takeaways

• American Eagle shares tumbled Thursday after comparable sales growth missed expectations, driven by a decline at the retailer's namesake stores.

• The company raised its profit forecast, but excluding a benefit from tariff refunds, it would have been lowered.

American Eagle Outfitters stock is tumbling after the retailer's comparable sales came in short of estimates amid continued weakness at its namesake stores.

American Eagle (AEO) shares were down 15% to about $14 in recent trading. The retailer posted earnings per share of 79 cents on revenue of $1.38 billion in the second quarter, above analysts' estimates, but its comparable sales growth missed.

While comparable sales at Aerie jumped 19% from a year ago, sales at American Eagle's namesake stores fell 1%, holding back growth. The company reported a 6% rise in comparable sales across its brands, below the consensus compiled by Visible Alpha.

American Eagle lifted its full-year operating profit forecast to $540 million to $550 million from the prior range of $390 million to $410 million. Excluding a nearly $200 million benefit from tariff refunds, however, the new range would have represented a lowered forecast.

During Wednesday's earnings call, executives pointed to expectations of lower comparable sales and higher discounting at American Eagle's namesake stores in the second half of the year.

UBS analysts trimmed their price target to $27 from $31 following the report, but said they are staying bullish on the stock in the long term. The analysts said they see Aerie as one of the "most underappreciated growth brands" in the industry, and suggested it could help carry American Eagle through near-term headwinds.

With Thursday's slump, American Eagle shares have lost nearly half their value since the start of the year.

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