Group 1 - American Eagle Outfitters reported $1.28 billion in revenue for the quarter ended July 2025, a year-over-year decline of 0.6% [1] - The EPS for the same period was $0.45, compared to $0.39 a year ago, representing a surprise of +125% over the consensus estimate of $0.20 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.23 billion by +4.14% [1] Group 2 - American Eagle's shares returned +12.4% over the past month, outperforming the Zacks S&P 500 composite's +3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3] Group 3 - The number of AE Brand stores was 829, exceeding the average estimate of 822 by four analysts [4] - Total net revenue for American Eagle was $800.41 million, compared to the average estimate of $790.97 million, reflecting a -3.3% year-over-year change [4] - Aerie's total net revenue was $429.08 million, surpassing the estimated $402.05 million, marking a +3.2% change year-over-year [4]

American Eagle Outfitters expects positive same-store sales in the back half of the year, aided by recent marketing campaigns featuring Sydney Sweeney and Travis Kelce https://t.co/5CutLryd4O ...

Core Insights - American Eagle's recent marketing campaign featuring Sydney Sweeney is considered a success, contributing to better-than-expected earnings in the second quarter [2][3] - The campaign has increased customer awareness and engagement, leading to a notable uptick in sales [2][4] Financial Performance - Earnings per share rose 15% year-over-year to $0.45, while net revenue decreased by 1% to $1.28 billion [3] - Comparable sales across the company, which includes Aerie, also fell by 1% [3] Marketing Campaign Impact - The "great jeans" campaign has sparked significant conversations and attracted new customers, with Sweeney's jeans selling out within a week [4] - The campaign has generated unprecedented new customer acquisition, according to the chief marketing officer [4] Controversy and Reception - The ad faced criticism for promoting "regressive" beauty standards, but the company maintained its stance that the campaign was focused on the jeans [5] - Despite mixed reactions, the campaign has been credited with driving sales and customer engagement [5][11] Future Collaborations - Following the success of the Sweeney campaign, American Eagle launched a clothing line in collaboration with NFL star Travis Kelce, which is expected to further boost sales [10][12] - The company plans to continue evolving the Sweeney campaign with new elements [11]

Financial Performance - American Eagle Outfitters (AEO) reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and up from $0.39 per share a year ago, representing an earnings surprise of +125.00% [1] - The company posted revenues of $1.28 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 4.14%, although this is slightly down from $1.29 billion in the same quarter last year [2] Stock Performance - American Eagle shares have declined approximately 19% since the beginning of the year, contrasting with the S&P 500's gain of 9.1% [3] - The current Zacks Rank for American Eagle is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $1.27 billion, and for the current fiscal year, it is $0.80 on revenues of $5.18 billion [7] - The outlook for the Retail - Apparel and Shoes industry, where American Eagle operates, is currently in the bottom 37% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $1,280,000,000, marking a 1% decline compared to the previous year, but it was the second highest revenue ever posted for this quarter [6][22] - Operating income improved by 2% to $103,000,000, exceeding expectations, with diluted EPS increasing by 15% year-over-year [9][22] - Gross profit dollars were $500,000,000, reflecting a gross margin of 38.9%, up from 38.6% last year [23] Business Line Data and Key Metrics Changes - Aerie experienced a comp growth of 3%, driven by strong demand in intimates, soft dressing, sleepwear, and activewear [6][15] - American Eagle saw a decline in comps but improved in key categories such as women's jeans and tops as the quarter progressed [17][19] - The overall traffic was positive across brands and channels, with significant momentum building through the second quarter [7][22] Market Data and Key Metrics Changes - The company reported a strong customer acquisition, with over 700,000 new customers attributed to recent marketing campaigns [20] - The campaigns generated approximately 40,000,000,000 impressions, indicating a significant reach and engagement [33][36] Company Strategy and Development Direction - The company is focused on strengthening its brands, improving growth runway, and managing for higher profitability [5][9] - There is a commitment to operational efficiencies and supply chain improvements, particularly in response to tariff impacts [10][26] - The company plans to open approximately 30 Aerie and offline locations and remodel 40 to 50 AE stores, while closing 35 to 40 American Eagle locations by year-end [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early results of actions taken to reignite performance, despite a dynamic consumer backdrop [5][9] - The third quarter is off to a better start, with consolidated comps up in the mid-single digits, and a positive outlook for the remainder of the year [29][30] - Management acknowledged the challenges posed by tariffs but emphasized ongoing efforts to mitigate their impact [10][30] Other Important Information - Year-to-date, the company has returned $276,000,000 to shareholders through dividends and share repurchases [11] - The company expects to incur approximately $20,000,000 in tariff costs in the third quarter and $40,000,000 to $50,000,000 in the fourth quarter [30][40] Q&A Session Summary Question: Can you tell us more about how you keep the momentum going with the new customers attracted by the campaigns? - The campaigns have generated unprecedented new customer acquisition, and the focus is on converting this buzz into repeat business [35][37] Question: Can you provide more details on the comp metrics, transaction ticket, and tariff impacts? - AUR was down mid-single digits, but traffic was healthy, and the team managed to offset some of the declines through effective markdown management [50][52] Question: What percentage of sales does intimates represent for Aerie, and how is the strategy to recapture share? - Intimates account for roughly one-third of Aerie's business, and the company is focused on launching new collections to regain market share [59][61] Question: Are there any product categories not performing well at Aerie? - The shorts category was identified as a challenge, but overall, the company is seeing positive trends in intimates and soft apparel [74][75] Question: What are the expectations for gross margin in the back half of the year? - The company anticipates a decline in gross margin due to tariff impacts, with ongoing efforts to manage expenses and optimize pricing strategies [78][80] Question: How will the marketing spend be allocated for the back half of the year? - Advertising expenses are expected to increase in the third quarter to support ongoing campaigns, while the fourth quarter may see a stabilization in SG&A expenses [100][101]

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $1,280,000,000, marking a 1% decline compared to the previous year but was the second highest ever for this quarter [21][22] - Operating income improved by 2% to $103,000,000, exceeding expectations, with a diluted EPS increase of 15% year-over-year [7][21] - Gross profit dollars were $500,000,000, reflecting a gross margin of 38.9%, up from 38.6% last year [22] Business Line Data and Key Metrics Changes - Aerie experienced a comp growth of 3%, achieving record second quarter revenue driven by strong demand in intimates, soft dressing, sleepwear, and activewear [5][14] - American Eagle saw a decline in comps but improved demand in key categories such as women's jeans and tops, with notable improvements as the quarter progressed [16][21] Market Data and Key Metrics Changes - Traffic was positive across brands and channels, with significant momentum building through the second quarter and into August [6][11] - New customer acquisition increased by over 700,000, with campaigns generating 40,000,000,000 impressions [19][58] Company Strategy and Development Direction - The company is focused on strengthening its brands, improving operational efficiencies, and enhancing customer experience while managing costs [4][7] - Capital allocation remains balanced between investments for long-term growth and returning capital to shareholders, with $276,000,000 returned year-to-date through dividends and share repurchases [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the brands and emphasized the importance of building on the progress made in the second quarter [12][29] - The third quarter is off to a better start, with consolidated comps up in the mid-single digits, and expectations for low single-digit increases in comparable sales for both the third and fourth quarters [27][28] Other Important Information - The company plans to open approximately 30 Aerie and offline locations and remodel 40 to 50 American Eagle stores [26] - Tariff impacts are expected to be $20,000,000 in Q3 and $40,000,000 to $50,000,000 in Q4, affecting gross margins [28][48] Q&A Session Summary Question: Can you tell us more about how you keep the momentum going with the new customers attracted by the campaigns? - The campaigns have generated unprecedented new customer acquisition, and the focus is on converting this buzz into repeat business [33][35] Question: Can you provide more details on the comp metrics, transaction ticket, and tariff impacts? - AUR was down mid-single digits, but healthy traffic was noted, with tariff impacts projected at $20,000,000 for Q3 and $40,000,000 to $50,000,000 for Q4 [46][48] Question: What percentage of sales does intimates represent for Aerie, and what is the strategy to recapture share? - Intimates account for roughly one-third of Aerie's business, and the strategy includes launching new collections and focusing on customer engagement [54][56] Question: How is the men's side of the business performing, and what are the expectations for denim? - Men's business has shown significant improvement, particularly in denim, which is trending positively [90][91] Question: What is the duration of the Sydney Sweeney and Travis Kelce campaigns? - The campaigns will continue through the remainder of the year, with new elements being introduced [94][96] Question: Can you discuss the inventory plans for Q3 and Q4? - Inventory positioning is aligned with plans, with a focus on managing costs and ensuring adequate supply for upcoming sales trends [99][100]

American Eagle stock surges 25% after Sydney Sweeney's "good jeans" ad campaign boosts brand https://t.co/zcVDwEvXHB ...

American Eagle stock surges 25% after Sydney Sweeney's "good jeans" ad campaign boosts brand https://t.co/GAI5WPXeqH ...

We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures. The tables included in this presentation reconcile the GAAP financial measures to the non-GAAP financial measures discussed within for the 26 weeks ended August 2, 2025. Our outlook also includes operating income presented on an adjusted or "non-GAAP" basis, which is a non-GAAP ...

Financial Performance - Second quarter operating income was $103 million, a 2% increase on revenue of $1.28 billion, exceeding expectations[5] - Total net revenue of $1.28 billion decreased by 1% year-over-year, with total comparable sales also down by 1%[6] - Gross profit was $500 million, with a gross margin of 38.9%, expanding by 30 basis points compared to last year[6] - Diluted earnings per share increased by 15% to $0.45, with average diluted shares outstanding at 172 million[12] - Net income for the 13 weeks ended August 2, 2025, was $77,633, maintaining a net income margin of 6.0%[25] - The company reported a net income of $12,734 for the 26 weeks ended August 2, 2025, which is 0.5% of total revenue, significantly lower than 6.0% in the previous year[27] Sales Performance - Aerie comparable sales grew by 3%, while American Eagle comparable sales decreased by 3%[6] - For the third quarter, comparable sales are expected to be up low single digits, with gross margin anticipated to decline year-over-year[11] - American Eagle segment revenue for the 13 weeks ended August 2, 2025, was $800,406, down from $827,638 year-over-year[29] - Aerie segment revenue for the 13 weeks ended August 2, 2025, was $429,084, slightly up from $415,646 in the prior year[29] Inventory and Capital Expenditures - Total ending inventory increased by 8% to $718 million, reflecting the impact of tariffs[7] - Capital expenditures for the second quarter totaled $71 million, with a year-to-date spend of $133 million, and expected 2025 capital expenditures of approximately $275 million[9] Guidance and Future Outlook - The company provided full-year operating income guidance of $255 to $265 million[5] - Total net revenue for the 26 weeks ended August 2, 2025, was $2,373,275, down from $2,434,925 in the same period last year[27] - The gross profit margin for the 26 weeks ended August 2, 2025, was 34.7%, compared to 39.5% in the prior year[27] Store Operations - The total number of consolidated stores at the end of the period remained stable at 1,185, with 2 new AE Brand stores opened during the 13 weeks[31]