Building upon its robust fourth-quarter results, American Eagle Outfitters Inc aims to reach $6 billion in revenue by the end of fiscal 2026. Termed ‘Powering Profitable Growth,’ the strategy aims to bolster the company's core brands while expanding its market presence.

Led by Jay Schottenstein, Executive Chairman and CEO, this strategic vision of the company focuses on amplifying American Eagle and Aerie's positions in the casual apparel market. It involves significant investments to augment the namesake banner and accelerate the growth of Aerie and its activewear brand, Offline. The company also intends to optimise operations and exercise financial discipline to sustain growth and profitability.

In the latest quarter, American Eagle reported earnings that surpassed analyst forecasts, buoyed by strong consumer demand and reduced markdowns. While net income dipped to $6.32 million compared to $54.6 million in the previous year, adjusted earnings exceeded estimates to reach $0.61 per share. The company attributed $131 million impairment and restructuring charge to realign its Quiet Platform logistics business with its long-term strategy.

Outpacing estimates, the company sales surged by 12 per cent to $1.68 billion, with store revenue increasing by 10 per cent and digital revenue surging by 19 per cent. Aerie experienced a 16 per cent growth in revenue to $538 million, while American Eagle’s revenue grew by 11 per cent to $1.1 billion. The company’s comparable sales also showed healthy growth for both brands.

Further, the company anticipates sales in the current quarter to surge by mid-single digit percentage while it expects them to rise by 4 per cent during the full year.

As of the fiscal year's end, American Eagle operated 1,182 stores, comprising 851 American Eagle outlets, 310 Aerie locations (including Offline), along with Todd Snyder and Unsubscribed stores.