5. Earnings per Share ("EPS")

Net income per basic and diluted share attributable to AEO is computed based on the weighted average number of outstanding shares of common stock. The following is a reconciliation between basic and diluted weighted average shares outstanding:

 

 

 

Fiscal Years Ending

 

 

 

January 31,

 

 

February 1,

 

 

February 3,

 

(In thousands)

 

2026

 

 

2025

 

 

2024

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income attributable to AEO and numerator for basic EPS

 

$

191,983

 

 

$

329,380

 

 

$

170,038

 

Add: Interest expense, net of tax, related to the 2025 Notes (1)

 

 

 

 

 

 

 

 

58

 

Numerator for diluted EPS

 

$

191,983

 

 

$

329,380

 

 

$

170,096

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Denominator for basic EPS - weighted average shares

 

 

172,165

 

 

 

193,056

 

 

 

195,646

 

Add: Dilutive effect of the 2025 Notes (1)

 

 

 

 

 

 

 

 

205

 

Add: Dilutive effect of stock options and non-vested restricted stock

 

 

3,976

 

 

 

3,356

 

 

 

1,012

 

Denominator for diluted EPS - adjusted weighted average shares

 

 

176,141

 

 

 

196,412

 

 

 

196,863

 

Anti-dilutive shares (2)

 

 

3,128

 

 

 

500

 

 

 

1,289

 

 

(1)
In accordance with ASU 2020-06, the Company utilizes the "if-converted" method of calculating diluted EPS.
(2)
For all periods presented, anti-dilutive shares relate to stock options and unvested restricted stock.

Refer to Note 2, Summary of Significant Accounting Policies, and Note 11, Share-Based Payments, to the Consolidated Financial Statements for additional information regarding the 2025 Notes and share-based compensation, respectively.

Historical Timeline

Fiscal YearFiled
2026Mar 30, 2026Showing above
2025Mar 20, 2025
2024Mar 15, 2024
2023Mar 13, 2023
2022Mar 14, 2022
2021Mar 11, 2021
2020Mar 12, 2020
2019Mar 14, 2019
2018Mar 16, 2018
2017Mar 10, 2017
2016Mar 10, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.