Should You Buy or Hold American Eagle Stock Post Q2 Earnings?
American Eagle Outfitters reported solid Q2 FY2026 results with 8% revenue growth and 6% comparable sales increase, driven by strong Aerie performance (+19% comps) and OFFLINE brand, offsetting weakness at core American Eagle (-1% comps). The company benefited from $179M in tariff refunds but faces near-term margin pressures from inventory rebalancing and elevated SG&A expenses. Management projects mid-single-digit comparable sales growth for FY2026 with gross margin expansion, though American Eagle brand execution remains a key risk.