Update shared on29 Jul 2025
Fair value Decreased 7.69%Despite a modest improvement in revenue growth forecasts, a significantly higher anticipated future P/E multiple suggests lower expected earnings, leading analysts to reduce American Eagle Outfitters’ consensus price target from $12.35 to $11.40.
What's in the News
- Launched Fall '25 campaign with Sydney Sweeney, including innovative marketing and a limited-run denim item supporting domestic violence awareness with all proceeds donated.
- Dropped from multiple Russell growth indexes, including Russell 2000 Growth, Russell 2500 Growth, and Russell Small Cap Comp Growth.
- Completed the repurchase of 25,966,546 shares (13.6% of shares outstanding) for $417.04 million under its buyback program.
- Q2 revenue expected to decline 5%, with operating income guided between $40 million and $45 million.
- Withdrew fiscal year 2025 guidance due to macro uncertainty following Q1 results, which included a 5% revenue decline and an $85 million operating loss.
Valuation Changes
Summary of Valuation Changes for American Eagle Outfitters
- The Consensus Analyst Price Target has fallen from $12.35 to $11.40.
- The Consensus Revenue Growth forecasts for American Eagle Outfitters has significantly risen from -0.1% per annum to 0.3% per annum.
- The Future P/E for American Eagle Outfitters has significantly risen from 8.17x to 12.62x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.