Core Viewpoint - American Eagle Outfitters is facing challenges in the current economic climate, with a decline in sales and comparable sales, but is managing costs effectively while leveraging marketing strategies to boost visibility and sales [3][4][5]. Company Performance - In the fiscal second quarter of 2025, American Eagle reported a 1% decrease in sales and comparable sales from the previous year, with Aerie's comparable sales down 3% [4]. - The company has successfully expanded its gross margin by 0.3 percentage points to 38.9% and its operating margin by 0.2 percentage points to 8% [4]. Marketing and Publicity - Recent marketing campaigns featuring actress Sydney Sweeney and collaboration with Travis Kelce have generated positive publicity and contributed to sales [5][7]. Stock Performance - American Eagle's stock has not performed as well as the S&P 500, with total returns of 13% compared to the S&P 500's 13.8% [6][8]. - The stock trades at 18 times trailing-12-month earnings, which is consistent with its historical average, and offers a dividend yield of 2.7% [8][9].