American Eagle Outfitters Reports Strong Q2 Earnings Driven by Aerie and Tariff Refunds
American Eagle Outfitters (AEO) reported second-quarter results that exceeded expectations, with revenue rising 8% to $1.4 billion and operating income more than doubling to $211 million. The performance was driven largely by a $161 million net benefit from tariff refunds and strong growth at its Aerie and OFFLINE brands. Aerie generated $536 million in revenue, up 25% year-over-year, with comparable sales increasing 19%. Management expects continued high-teens to 20% growth for these brands in Q3. While American Eagle's core brand saw a slight decline in comparable sales (-1%), it showed sequential improvement from the first quarter. The company forecast third-quarter operating income between $110 million and $115 million, with full-year guidance of $540 million to $550 million. Despite progress at American Eagle, management noted ongoing inventory challenges requiring markdowns on seasonal and older-fit merchandise.
Tickers: $AEO
Topics: financial_results retail tariff_refunds