American Eagle Outfitters' Q2 Performance: AEO's shares surged over 24% after reporting strong Q2 fiscal 2025 results, with earnings of 45 cents per share exceeding estimates and a 15% year-over-year increase. Total revenues of $1.28 billion slightly fell year-over-year but surpassed expectations.
Brand Performance and Future Outlook: The American Eagle brand saw a 3.3% revenue decline, while Aerie's revenues increased by 3.2%. For Q3 and Q4 of fiscal 2025, AEO anticipates low single-digit comp growth, with projected increases in SG&A expenses and a focus on digital investments and store optimization.
AEO
$26.5+Infinity%1D
Analyst Views on AEO
Wall Street analysts forecast AEO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AEO is 16.70 USD with a low forecast of 11.00 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast AEO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AEO is 16.70 USD with a low forecast of 11.00 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
8 Hold
3 Sell
Hold
Current: 25.460
Low
11.00
Averages
16.70
High
22.00
Current: 25.460
Low
11.00
Averages
16.70
High
22.00
Goldman Sachs
Jon Keypour
Neutral
initiated
$25
2025-12-11
New
Reason
Goldman Sachs
Jon Keypour
Price Target
$25
2025-12-11
New
initiated
Neutral
Reason
Goldman Sachs analyst Jon Keypour initiated coverage of American Eagle with a Neutral rating and $25 price target. The firm rolled out coverage of the apparel retail sector with a preference for store growth and pricing power. Apparel prices have lagged inflation, providing an opportunity for a "catch-up" to offset tariff pressures for retailers with a value perception, the analyst tells investors in a research note. Goldman says that in an environment where the middle-to-high income consumer remains resilient, it prefers newer concepts with larger store growth opportunities.
Citi
Neutral -> Hold
upgrade
$18 -> $23
2025-12-03
Reason
Citi
Price Target
$18 -> $23
2025-12-03
upgrade
Neutral -> Hold
Reason
Citi raised the firm's price target on American Eagle to $23 from $18 and keeps a Neutral rating on the shares. The company reported upside to Q3 estimates on Aerie and both American Eagle's brands are accelerating in Q4, the analyst tells investors in a research note.
UBS
Buy
maintain
$22 -> $31
2025-12-03
Reason
UBS
Price Target
$22 -> $31
2025-12-03
maintain
Buy
Reason
UBS raised the firm's price target on American Eagle to $31 from $22 and keeps a Buy rating on the shares. The company's solid report increases UBS's Buy rating conviction, the analyst tells investors in a research note.
BofA
Underperform
maintain
$11 -> $18
2025-12-03
Reason
BofA
Price Target
$11 -> $18
2025-12-03
maintain
Underperform
Reason
BofA raised the firm's price target on American Eagle to $18 from $11 and keeps an Underperform rating on the shares after the company reported "a robust start to the holiday selling season." However, the firm thinks the current valuation limits potential upside from here, the analyst tells investors in a post-earnings note.
About AEO
American Eagle Outfitters, Inc. is a global specialty retailer. The Company offers clothing, accessories and personal care products under its American Eagle and Aerie brands. The Company operates through two segments: American Eagle and Aerie. American Eagle is an American jeans and apparel brand. Aerie is a lifestyle brand offering intimates, apparel, activewear, and swim collections. OFFLINE by Aerie offers a complete collection of activewear and accessories. The Company sells its products directly to consumers through its retail channel, which includes its stores and concession-based shops-within-shops. It operates stores in the United States, Canada, Mexico, and Hong Kong. The Company has license agreements with third parties to operate American Eagle and Aerie stores and online marketplace businesses throughout Asia, including India, Europe, Latin America, and the Middle East. The Company also operates Todd Snyder New York (Todd Snyder), a premium menswear brand.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
