American Eagle Outfitters

At fiscal 2025 year‑end AEO had no outstanding borrowings on its 700 million ABL facility and held 239 million of cash and equivalents; Q1 fiscal 2026 carried 85 million of borrowings and 103 million cash as seasonal working capital built.

Lease obligations are significant as is typical for retailers, but near‑term liquidity is solid and the company generates positive annual free cash flow. We view insolvency risk as low under normal recessions, though discretionary demand shocks and elevated tariffs could compress margins and cash conversion.