American Eagle OutfittersFRA:AFG -1.67%80 Gross Margin % is 38.16% as of Apr. 2026, which is 4% above its 10-year median of 36.69. GuruFocus rates FRA:AFG with a GF Score™ of 80/100 and a GF Value™ of €18.64 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,117 Retail - Cyclical companies, American Eagle Outfitters ranks better than 54.61% on this metric.
American Eagle Outfitters (FRA:AFG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
American Eagle Outfitters had a gross margin of 38.16% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
American Eagle Outfitters Gross Margin % Related Terms
American Eagle Outfitters Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:AFG vs BKE, ANF, CRI: Gross Margin % Comparison
For the Apparel Retail subindustry, American Eagle Outfitters's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Eagle Outfitters Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
American Eagle Outfitters (FRA:AFG) has a Gross Margin % of 38.16% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on American Eagle Outfitters and its competitors. This is near median its historical median of 36.69. Over the past decade, American Eagle Outfitters' Gross Margin % has ranged from 30.54 to 39.75. According to the industry distribution chart, American Eagle Outfitters ranks #507 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 45.4%.
Is American Eagle Outfitters' Gross Margin % too high?
American Eagle Outfitters' current Gross Margin % of 38.16% is near median its 10-year median of 36.69. Over the past 10 years, this metric has ranged from a low of 30.54 to a high of 39.75. The Retail - Cyclical industry median Gross Margin % is 36.23. American Eagle Outfitters' value of 38.16% is 5.3% above this industry median. Based on the distribution chart, American Eagle Outfitters ranks #507 out of 1117 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, American Eagle Outfitters has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Eagle Outfitters' Gross Margin % compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #507 out of 1117 companies for Gross Margin %. This puts American Eagle Outfitters in the upper half of its industry. The industry median Gross Margin % is 36.23. American Eagle Outfitters' value of 38.16% is 5.3% above this benchmark. Historically, American Eagle Outfitters' own Gross Margin % has ranged from 30.54 to 39.75 over the past decade. While the company's 10-year median is 36.69 vs. the industry median of 36.23, American Eagle Outfitters has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Eagle Outfitters's current Gross Margin % of 38.16% is 5.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on American Eagle Outfitters and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Eagle Outfitters's current Gross Margin % is 38.16%, which is near median its own 10-year median of 36.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Eagle Outfitters stock overvalued right now?
Based on GuruFocus' analysis, American Eagle Outfitters (FRA:AFG) is currently considered Modestly Undervalued. The stock's GF Value™ is €18.64, compared to a current price of €15.60 — trading 16.3% below its estimated fair value. The current Gross Margin % is 38.16%, which is near median its 10-year median of 36.69 and 5.3% above the Retail - Cyclical industry median of 36.23. American Eagle Outfitters' overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Gross Margin % is 38.16% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Eagle Outfitters (FRA:AFG) Overvalued in 2026?
Based on GuruFocus' analysis, American Eagle Outfitters stock appears to be undervalued.
The current stock price of €15.60 is trading 16.3% below its estimated GF Value™ of €18.64.
GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.
Key valuation signals for FRA:AFG:
Gross Margin %: 38.16% (near median its 10-year median of 36.69)
GF Value™: €18.64 vs. price of €15.60 (16.3% below fair value)
Industry Position: 5.3% above the Retail - Cyclical median (#507 of 1117)
No single metric tells the full story. See the FRA:AFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Eagle Outfitters Inc is a specialty retailer. The company is engaged in the retail of apparel and accessories with company stores in the United States, Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has its online business. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel, accessories, and personal care products for women and men. Geographically, it generates the majority of its revenue from the United States.
80GF Score
Get the complete analysis for FRA:AFG
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:AFG has been successfully added to your 
