American Eagle Outfitters Inc

Latest Results (05.10.2025):

American Eagle Outfitters Inc reported its financial results for the second quarter of 2025, achieving an operating income of $103 million on revenues of $1.28 billion, thereby exceeding expectations. The company continued its share repurchase program and provided optimistic guidance for full-year operating income.

Revenue and Operating Income

In the second quarter of 2025, American Eagle Outfitters Inc generated total net revenue of $1.28 billion, a slight decrease of 1% compared to the same period last year. Despite this, the operating income rose by 2% to $103 million, with the operating margin expanding by 20 basis points to 8.0%.

Share Repurchases

Year-to-date share repurchases amounted to $231 million, reducing the number of outstanding shares by 20 million, or approximately 10% of diluted shares. This initiative demonstrates the company's commitment to enhancing shareholder value.

Full Year Guidance

American Eagle Outfitters Inc provided full-year operating income guidance of $255 to $265 million. The outlook includes expectations for continued growth in comparable sales and sustained gross margin performance.

Comparable Sales and Margins

During the second quarter, Aerie's comparable sales grew by 3%, while American Eagle's comparable sales decreased by 3%. Gross profit reached $500 million with a gross margin of 38.9%, an increase of 30 basis points from the previous year.

Inventory and Capital Expenditures

Ending inventory rose by 8% to $718 million, primarily due to increased costs from tariffs. Capital expenditures totaled $71 million for the quarter, with year-to-date spending at $133 million. The company anticipates total capital expenditures for 2025 to be approximately $275 million.