American Eagle Outfitters (AEO) Q1 Revenue Beats as Aerie Surges, but Shares Slide on Tariff Worries

American Eagle Outfitters (NYSE: AEO) reported on May 29, 2026 that first-quarter revenue rose 9.7% year-over-year to $1.20 billion, exceeding analyst forecasts. Non-GAAP earnings of $0.14 per share beat estimates by 15.6%. However, shares dropped 12.3% from $17.96 to $15.75 as investors focused on margin pressure and tariff risks. Growth was driven by the Aerie and Offline brands, which posted double-digit gains in intimates, sleepwear, and activewear. The namesake American Eagle label underperformed, especially in women’s bottoms and seasonal apparel. CEO Jay Schottenstein described results as “mixed” and acknowledged execution gaps. CFO Michael Mathias warned that tariffs will create a 150 to 200 basis point headwind in coming quarters. Management expects Aerie’s momentum to continue, but second-half profitability hinges on markdown discipline and marketing efficiency. The company also cited targeted assortment changes and influencer campaigns to revive the core brand.