Young adult apparel retailer American Eagle Outfitters (NYSE: AEO) will be reporting earnings this Wednesday after the bell. Here’s what you need to know.

American Eagle beat analysts’ revenue expectations last quarter, reporting revenues of $1.20 billion, up 9.7% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and gross margin in line with analysts’ estimates.

Is American Eagle a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting American Eagle’s revenue to grow 6.8% year on year, improving from its flat revenue in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. American Eagle has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at American Eagle’s peers in the apparel retailer segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tilly's delivered year-on-year revenue growth of 8.1%, beating analysts’ expectations by 4.1%, and Abercrombie and Fitch reported revenues up 4.8%, topping estimates by 1.8%. Tilly's traded up 7.3% following the results while Abercrombie and Fitch was also up 33.8%.

Read our full analysis of Tilly’s results here and Abercrombie and Fitch’s results here.

Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the apparel retailer stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.7% on average over the last month. American Eagle is down 5.2% during the same time and is heading into earnings with an average analyst price target of $19.70 (compared to the current share price of $17.38).

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