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 ...

Exhibit 99.1 AEO Inc. Reports Second Quarter Fiscal 2025 Results September 3, 2025 – PITTSBURGH – (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the second quarter ended August 2, 2025. "We were pleased to see an improvement in the business during the second quarter driven by higher demand, lower promotions and well-managed expenses, all of which exceeded our expectations," said Jay Schottenstein, Executive Chairman of the Board and Chief Executive Office ...

Core Viewpoint - American Eagle's partnership with Sydney Sweeney has been its most successful advertising campaign to date, contributing to better-than-expected fiscal second-quarter earnings and significant stock price increase [1][2]. Financial Performance - The company reported a net income of $77.6 million, or 45 cents per share, compared to $77.3 million, or 39 cents per share, a year earlier [4]. - Sales for the quarter were $1.28 billion, slightly down from $1.29 billion a year ago [5]. - American Eagle expects comparable sales to be up in the low single-digit range for the current quarter, better than the anticipated 0.9% increase [5]. Marketing Campaigns - The marketing campaigns featuring Sydney Sweeney and Travis Kelce have led to new customer acquisition, with 700,000 new customers gained and positive traffic across channels [8][10]. - The Sweeney campaign has resulted in sellouts of key products, including the Sydney Jacket and Sydney Jean, which sold out in one day [9]. - The campaign has also driven double-digit traffic growth and increased customer engagement [9]. Future Outlook - The company has re-issued its full-year guidance, expecting comparable sales to be approximately flat, which is better than the previously anticipated 0.2% decline [3]. - American Eagle expects full-year operating income to be between $255 million and $265 million, down from a previous range of $360 million to $375 million [4]. Competitive Landscape - American Eagle faces stiff competition from brands like Abercrombie & Fitch, Gap, and Levi's, each launching their own marketing campaigns [11]. - The company is working to reduce reliance on China for manufacturing, aiming for under 10% this year, while also facing challenges from tariffs affecting its operations in Vietnam and India [12].

Core Insights - American Eagle Outfitters, Inc. (AEO) is set to report its second-quarter fiscal 2025 results on September 3, with expected revenues of $1.2 billion, reflecting a 4.5% decline year-over-year, and earnings per share (EPS) of 20 cents, indicating a 48.7% decrease from the previous year [1][2][10] Financial Performance - The Zacks Consensus Estimate for AEO's fiscal second-quarter revenues is $1.2 billion, down 4.5% from the same quarter last year [2][10] - The consensus estimate for fiscal second-quarter earnings is 20 cents per share, down 48.7% from 39 cents reported in the year-ago quarter [2][10] - In the last reported quarter, AEO's earnings missed the consensus estimate by 16%, with a negative earnings surprise of 0.3% on average over the trailing four quarters [3] Market Conditions - AEO's upcoming results are likely to be negatively impacted by macroeconomic pressures, including elevated household debt, inflation, and uncertainty around employment, which are dampening consumer confidence, particularly among younger, price-sensitive shoppers [5] - Spending on non-essential categories like apparel is expected to remain subdued, affecting both store traffic and online conversion rates [5] Operational Challenges - Merchandising missteps have been significant hurdles, with Aerie's categories like lace tops and shorts failing to resonate, and American Eagle facing out-of-stock issues in core denim and weakness in men's pants and shorts [6] - Margin pressure is a concern due to higher product costs, increased freight expenses, and elevated promotional activity, with management estimating about $40 million in tariff-related costs this year [7] Management Expectations - Management expects a similar top-line trend in the fiscal second quarter as in the first quarter, projecting a 5% revenue decline and a 3% decrease in comparable sales [8] - Gross margin is anticipated to decline year-over-year due to increased markdowns and a deleveraged cost structure [8] Strategic Actions - AEO has taken corrective actions to strengthen performance, including better alignment of inventory levels with current demand and refining assortments to emphasize proven categories like denim and activewear [9] - Marketing investments are being ramped up ahead of the back-to-school season, and capital spending is being paced carefully to preserve cash while supporting growth [11] Valuation Perspective - AEO's shares are trading at a forward 12-month price-to-earnings ratio of 12.58X, below the industry average of 18.67X, presenting an attractive opportunity for investors [12] - Over the past six months, AEO's shares have gained 5.3%, compared to the industry's growth of 5.6% [14]

Group 1 - American Eagle announced a limited collaboration with Travis Kelce's personal brand Tru Kolors, named AE x Tru Kolors by Travis Kelce, which has been in preparation for over a year [3][6] - The collection will launch in two phases on August 27 and September 24, featuring over 90 products priced between $14.95 and $179.95, including retro-style t-shirts, sweaters, and polo shirts [3][6] - Jennifer Foyle, President and Executive Creative Director of American Eagle, emphasized the significance of the collaboration, stating it represents a victory for the brand [5] Group 2 - Travis Kelce, born in October 1989, has a keen interest in fashion, often showcasing his personal style on game days, and is building his business empire through his lifestyle brand Tru Kolors, inspired by 90s retro sports gear [7] - Tru Kolors became the first brand officially collaborating with an NFL team, the Kansas City Chiefs, in 2022 [7] - The relationship between Kelce and Taylor Swift, which began in September 2023, has increased his marketability, leading to further investments, including a stake in the F1 Alpine team alongside teammate Patrick Mahomes [7]

BALTIMORE, MARYLAND - JANUARY 28: Travis Kelce #87 of the Kansas City Chiefs (L) celebrates with Taylor Swift after defeating the Baltimore Ravens in the AFC Championship Game at M&T Bank Stadium on January 28, 2024 in Baltimore, Maryland. (Photo by Patrick Smith/Getty Images)Getty Images In fashion as in football, timing is everything and American Eagle Outfitters has just made a play timed perfectly to put more points on the scoreboard for the brand. Just a day after Travis Kelce’s internet-breaking propo ...

Core Viewpoint - American Eagle Outfitters (AEO) is expected to report a significant decline in quarterly earnings and revenues compared to the previous year, indicating potential challenges in its business performance [1]. Financial Performance Estimates - Analysts predict AEO's quarterly earnings to be $0.20 per share, a decrease of 48.7% year-over-year [1]. - Revenue is forecasted at $1.23 billion, reflecting a year-over-year decline of 4.5% [1]. - The consensus EPS estimate has been revised upward by 1.5% over the last 30 days, indicating a slight positive adjustment in analysts' outlook [2]. Key Metrics Analysis - Total net revenue for American Eagle is estimated at $790.97 million, representing a year-over-year change of -4.4% [5]. - Aerie's total net revenue is projected to be $402.05 million, indicating a decline of 3.3% from the prior-year quarter [5]. - The total number of stores is expected to reach 1,180, slightly up from 1,178 in the same quarter last year [5]. Store and Operational Metrics - The number of stores for the AE Brand is estimated at 822, down from 843 in the same quarter last year [6]. - Aerie stand-alone stores are projected to number 330, an increase from 313 in the previous year [6]. - The total gross square footage is estimated to remain at 7 million square feet, unchanged from the previous year [7]. Operating Income Estimates - Operating income for Aerie is expected to be $59.49 million, down from $69.64 million in the same quarter last year [8]. - The consensus estimate for operating income for American Eagle stands at $124.09 million, compared to $144.89 million in the previous year [8]. Stock Performance - Over the past month, American Eagle shares have increased by 17.3%, outperforming the Zacks S&P 500 composite, which saw a change of +1.5% [9]. - AEO holds a Zacks Rank of 3 (Hold), suggesting that its performance is likely to align with the overall market in the near term [9].