PITTSBURGH, September 11 — American Eagle Outfitters collected $196 million in IEEPA tariff refunds, including interest, during its second quarter ended August 1, 2026, a windfall that netted out to a $161 million operating income benefit after the company accrued $35 million in incremental incentive compensation. The figure that matters for investors: the refunds, disclosed in a September 9 press release, lifted both gross profit and SG&A lines, and the company said it has now received substantially all of the refunds for which it submitted claims.
Not all of the tariff money stayed home. During the same quarter, AEO recorded $45 million in interest expense tied to an agreement with a third-party buyer for the sale of certain tariff refund claims — a deal struck in the prior fiscal year.
That charge sits alongside the refund benefit in the quarter’s results. Inventory, meanwhile, climbed. Consolidated inventory at cost rose 14%, with units up 9%.
The cost increase includes the impact of incremental tariffs this year. Management said unit inventory plans will continue to be rebalanced between brands and categories for the remainder of the year.
Aerie Momentum, Men’s Growth, Women’s Still Uneven
Executive Chairman and Chief Executive Officer Jay Schottenstein framed the quarter around the breadth of the AEO Inc. portfolio. He cited broad-based momentum at Aerie and OFFLINE alongside encouraging progress at American Eagle. “We continue to expand Aerie’s reach and deepen brand awareness, leveraging authentic connections to attract new customers and fuel engagement,” Schottenstein said.
American Eagle showed sequential improvement from the first quarter, including a fourth consecutive quarter of growth in men’s. The women’s business remains the soft spot.
Schottenstein said the company is focused on opportunities to drive greater consistency there. Looking to the second half, he said AEO is committed to building on momentum in Aerie and OFFLINE, accelerating improvement at American Eagle, and unlocking greater consistency and profitability across the business.
Capital Returns and What to Watch
The company returned $21 million to shareholders during the quarter through a quarterly cash dividend of $0.125 per share, paid to shareholders of record as of July 10, 2026. Capital expenditures totaled $66 million in the quarter, and AEO expects full-year 2026 capex in the range of $250 to $260 million. AEO operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through license partners, plus e-commerce across its brands — American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed.
Management hosted a conference call on September 9 at 4:30 p.m. Eastern Time, with a webcast, audio replay and a financial results presentation posted to the Investor Relations section of aeo-inc.com. The release carries safe harbor language under the Private Securities Litigation Reform Act of 1995 covering third-quarter and full-year fiscal 2026 expectations, and all guidance includes the impact of the IEEPA tariff refunds.
Next up: whether the tariff refund boost proves a one-quarter event, and whether the men’s streak and Aerie momentum can pull the women’s business into line.
