American Eagle Outfitters(US:AEO) Yahoo Finance·2025-10-07 15:01Core Insights - American Eagle Outfitters, Inc. (NYSE:AEO) has experienced a decline for six consecutive days, dropping 6.97% to close at $15.76 as investors shift towards higher-yielding assets like AI stocks due to a lack of new catalysts [1][3] - The company reported a 1% decrease in revenues for the second quarter, totaling $1.28 billion compared to $1.29 billion in the same period last year, with net income remaining flat at $77 million [2] - For the third and fourth quarters of 2025, American Eagle anticipates low single-digit growth in comparable sales, but expects flat performance for the full fiscal year [3] Financial Performance - Second-quarter revenues decreased by 1% to $1.28 billion from $1.29 billion year-over-year [2] - Net income for the same quarter was flat at $77 million [2] Market Sentiment - The stock's performance has been negatively impacted as investors are reallocating funds to AI stocks, indicating a shift in market sentiment away from American Eagle [1][3] - Despite the potential of American Eagle as an investment, there is a belief that AI stocks may offer better returns with lower risk [4]