Overview
- Holiday-quarter net revenue reached $1.76 billion, topping estimates, with adjusted earnings of $0.84 per share beating forecasts.
- For 2026 the company projects mid-single-digit comparable sales growth and operating profit of $390 million to $410 million, with first-quarter comps tracking in the high single digits.
- Aerie drove the quarter with a 23 percent comparable-sales surge as Offline posted double-digit gains and the American Eagle brand rose 2 percent, lifting total comps 8 percent.
- Gross margin slipped 30 basis points to 37 percent, with a $50 million net tariff impact equal to about 280 basis points partly offset by operational efficiencies and favorable currency.
- Charges tied to the Quiet Platforms exit weighed on profitability, including $84 million in Q4 impairments and 2025 operating income of $226 million, while shares fell about 3.7 percent after hours.