American Eagle Outfitters(AEO) - 2026 Q2 - Quarterly Results

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]