AEO Inc. exceeded expectations in Q2 2026, driven by Aerie's 25% revenue growth and a significant boost from $161 million in net tariff refunds, signaling strong brand momentum.
AEO's Q2 2026 earnings exceeded expectations with 6% comparable sales growth and strong Aerie performance, signaling positive momentum.
AEO Inc. delivered strong second-quarter results, reporting $1.4 billion in revenue and 6% comparable sales growth. The performance was anchored by Aerie, which saw a 25% jump in total revenue and 19% comparable sales growth, while the American Eagle brand showed sequential improvement with positive momentum in its men's category.
The gross margin expansion was largely driven by a net benefit of $179 million related to tariff refunds, which contributed 1,300 basis points to the margin.