Aerie Drives American Eagle Outfitters' Q2 Sales Growth
American Eagle Outfitters Inc. (NYSE: AEO) reported a second-quarter revenue increase of 8% to $1.38 billion, slightly above analyst expectations. The growth was primarily driven by its Aerie brand, which saw a 19% rise in comparable sales, offsetting the 1% decline at American Eagle. Despite strong top-line performance and gross profit rising 34% due to tariff refunds, shares fell nearly 9% after hours as investors sought more robust results. Aerie's net sales reached $536 million for the quarter, up 25%, with strength across apparel categories including Ts, tanks, fleece, and bottoms. The brand also saw success in core intimates business. American Eagle showed sequential improvement but only a modest 0.7% revenue increase to $805.9 million. Management emphasized Aerie's role as the growth engine for AE Inc., with plans to expand its reach while refining strategies at American Eagle, particularly in women’s categories where consistent growth is still needed.
Tickers: $AEO
Topics: Aerie American Eagle Outfitters (AEO) comp sales growth earnings report revenue increase