By Kelly Cloonan

American Eagle Outfitters recorded higher sales in its latest quarter, driven by growth at its Aerie brand.

Same-store sales climbed 23% at Aerie, which sells loungewear and intimates as well as the activewear brand Offline. The growth outpaced a 2% gain for American Eagle's namesake brand and helped overall revenue increase 10%.

The results marked a record fourth quarter and holiday period, according to Chief Executive Jay Schottenstein.

Schottenstein said the company saw higher demand in the period due to new collections and marketing campaigns, helping it build on improved trends that began last summer. American Eagle has pursued a number of celebrity partnerships in recent months, including campaigns with actress Sydney Sweeney and Kansas City Chiefs tight end Travis Kelce.

The apparel retailer on Wednesday posted a profit of $87.9 million, or 50 cents a share, for its fiscal fourth quarter, down from $104.3 million, or 54 cents a share, a year earlier. The recent quarter included a net tariff impact of $50 million, the company said.

Adjusted earnings per share were 84 cents, compared with analyst estimates of 71 cents.

Revenue came in at $1.76 billion, compared with analyst estimates of $1.74 billion.

Overall same-store sales rose 8%, compared with analysts' forecast of 8.9% growth.

Looking ahead, the current quarter is off to a positive start, Schottenstein said. The company plans to continue investing in its brands and boosting efficiency across the business, he said.

For the fiscal first quarter, the company expects same-store sales to rise by a high-single-digit rate, compared with Wall Street's projections of 5.3% growth.

For the fiscal year, American Eagle guided for same-store sales up by mid-single digits. Analysts were looking for 2.8% growth.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

March 04, 2026 17:13 ET (22:13 GMT)

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