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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
American Eagle Outfitters Inc · 10-Q · Q2 FY2026 · Period ended May 2, 2026
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We are primarily exposed to the impact of foreign exchange rate risk primarily through our Canadian and Mexican operations where the functional currency is the Canadian dollar and Mexican peso, respectively. The impact of all other foreign currencies is currently immaterial to our consolidated financial results. An unrealized gain of $15 million is included in accumulated other comprehensive income during the 13 weeks ended May 2, 2026. Our market risk profile as of January 31, 2026 is disclosed in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, of our Fiscal 2025 Form 10-K, and was unchanged as of May 2, 2026.