American Eagle Outfitters, Inc. AEO is slated to report first-quarter fiscal 2026 results on May 28, after market close. The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, implying 8.5% growth from the prior year. Meanwhile, the consensus mark for earnings has remained unchanged at 11 cents per share in the past seven days and suggests a 137.9% increase from the year-ago period. AEO has a trailing four-quarter earnings surprise of 37.6%, on average.
American Eagle Outfitters, Inc. Price, Consensus and EPS Surprise
American Eagle Outfitters, Inc. price-consensus-eps-surprise-chart | American Eagle Outfitters, Inc. Quote
Key Factors to Observe for AEO’s Q1 Earnings
American Eagle’s first-quarter performance is likely to have benefited from its product initiatives aiming to drive fresh trends and newness across collections, supported by high-profile partnerships and marketing campaigns. Collaborations with Sydney Sweeney, Travis Kelce and Martha Stewart have reinforced the brand’s cross-generational appeal and positioned it as a key gifting destination. The company also noted that customer counts and retention trends reflect the success of these initiatives. In addition, planned collaborations with Lamine Yamal, Ella Langley and Bailey Zimmerman are likely to have created additional culturally relevant engagement opportunities during the quarter.
Strong demand acceleration in Aerie might have been another key growth driver, with broad-based strength spanning intimate apparel, soft dressing and OFFLINE activewear categories. Fresh product flows, new collections and category expansions such as sleepwear are likely to have helped the company maintain strong customer engagement during the quarter. Additionally, fabric innovation, trend-focused prints and appealing color assortments are likely to have contributed positively to Aerie apparel’s performance across both tops and bottoms.
The company’s ongoing efforts to improve efficiency and prioritize higher-return initiatives are also likely to have supported fiscal first-quarter results. The company is focused on its core brands as it exited the Quiet Logistics business. Following the exit of the Quiet Logistics business, the company retained an enhanced logistics network supported by upgraded warehousing systems, improved technology, regionalized distribution capabilities and faster customer fulfillment infrastructure, which may have supported overall operational performance.
That said, American Eagle might have faced pressure during the fiscal first quarter from tariff-related headwinds and higher inventory costs, with disruptions from storms. These factors are likely to have created operational challenges and weighed on the company’s overall performance during the period.
What the Zacks Model Says About AEO’s Q1 Earnings
As investors prepare for AEO’s fiscal first-quarter results, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for AEO this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
AEO has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Casey’s General Stores, Inc. CASY currently has an Earnings ESP of +1.02% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter fiscal 2026 earnings per share is pegged at $3.44, which implies 30.8% year-over-year growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.3 billion, implying 8.4% year-over-year growth. CASY has a trailing four-quarter negative earnings surprise of 20%, on average.
lululemon athletica, inc. LULU currently has an Earnings ESP of +0.47% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2026 earnings per share is pegged at $1.69, which implies 35% year-over-year decline.
The Zacks Consensus Estimate for quarterly revenues is pegged at $2.4 billion, implying a 2.8% year-over-year growth. LULU has a trailing four-quarter earnings surprise of 7.9%, on average.
Costco Wholesale Corporation COST currently has an Earnings ESP of +1.95% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter fiscal 2026 earnings per share is pegged at $4.9, which implies 14.7% year-over-year growth.
The Zacks Consensus Estimate for quarterly revenues is pegged at $69.5 billion, implying roughy 10% year-over-year growth. COST has a trailing four-quarter negative earnings surprise of 1.1%, on average.
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American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
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Casey's General Stores, Inc. (CASY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).