American Eagle Outfitters (FRA:AFG) Operating Income: €363 Mil (TTM As of Apr. 2026)

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FRA:AFG American Eagle Outfitters Inc FRA:AFG
80 GF Score
Price €13.96
GF Value €18.50
Valuation Modestly Undervalued
! 1 Warning Sign
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What is American Eagle Outfitters Operating Income?

American Eagle Outfitters FRA:AFG +0.22% 80 Operating Income is €363 Mil as of Apr. 2026. GuruFocus rates FRA:AFG with a GF Score™ of 80/100 and a GF Value™ of €18.50 (Modestly Undervalued). The stock has 1 warning sign investors should review.

American Eagle Outfitters's Operating Income for the three months ended in Apr. 2026 was €24 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was €363 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. American Eagle Outfitters's Operating Income for the three months ended in Apr. 2026 was €24 Mil. American Eagle Outfitters's Revenue for the three months ended in Apr. 2026 was €1,022 Mil. Therefore, American Eagle Outfitters's Operating Margin % for the quarter that ended in Apr. 2026 was 2.36%.

Good Sign:

American Eagle Outfitters Inc operating margin is expanding. Margin expansion is usually a good sign.

American Eagle Outfitters's 5-Year average Growth Rate for Operating Margin % was 55.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. American Eagle Outfitters's annualized ROC % for the quarter that ended in Apr. 2026 was 2.67%. American Eagle Outfitters's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 3.91%.


American Eagle Outfitters  (FRA:AFG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

American Eagle Outfitters's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=96.532 * ( 1 - 16.88% )/( (2889.445 + 3130.9)/ 2 )
=80.2373984/3010.1725
=2.67 %

where

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3412.238 - 319.47 - ( 203.323 - max(0, 738.296 - 1118.361+203.323))
=2889.445

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

American Eagle Outfitters's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=96.532/( ( (1903.018 + max(449.066, 0)) + (2031.149 + max(550.848, 0)) )/ 2 )
=96.532/( ( 2352.084 + 2581.997 )/ 2 )
=96.532/2467.0405
=3.91 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(220.089 + 597.373 + 97.576) - (319.47 + 64.062 + 82.44)
=449.066

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(171.668 + 698.249 + 100.77) - (269.934 + 57.634 + 92.271)
=550.848

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

American Eagle Outfitters's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2026 )/Revenue (Q: Apr. 2026 )
=24.133/1021.969
=2.36 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


American Eagle Outfitters Operating Income Related Terms


American Eagle Outfitters Operating Income Historical Data

* Premium members only.

The historical data trend for American Eagle Outfitters's Operating Income can be seen below:

* 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.

American Eagle Outfitters Operating Income Chart

American Eagle Outfitters Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 533.06 249.87 334.53 429.74 278.98

American Eagle Outfitters Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -60.58 88.34 96.70 153.38 24.13
FRA:AFG
80GF Score
American Eagle Outfitters Inc FRA:AFG
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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American Eagle Outfitters Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €363 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €363 Mil mean?
American Eagle Outfitters (FRA:AFG) has a Operating Income of €363 Mil as of Apr. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on American Eagle Outfitters and its competitors.
Is American Eagle Outfitters' Operating Income too high?
American Eagle Outfitters' current Operating Income is €363 Mil. 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' Operating Income compare to BKE and ANF?
American Eagle Outfitters' Operating Income of €363 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Cyclical company?
A good Operating Income depends on the Retail - Cyclical industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on American Eagle Outfitters and its competitors. American Eagle Outfitters's current Operating Income is €363 Mil. 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 €18.50, compared to a current price of €13.96 — trading 24.6% below its estimated fair value. The current Operating Income is €363 Mil. 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 Operating Income calculated?
Operating Income is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Operating Income is €363 Mil 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 €13.96 is trading 24.6% below its estimated GF Value™ of €18.50. GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.

Key valuation signals for FRA:AFG:

  • Operating Income: €363 Mil
  • GF Value™: €18.50 vs. price of €13.96 (24.6% below fair value)
  • GF Score™: 80/100 with 1 warning sign

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 Business Description

Address 77 Hot Metal Street, Pittsburgh, PA, USA, 15203-2329
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

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€13.96
Price
€18.50
GF Value