American Eagle Outfitters (AEO) Q2 2025 earnings summary

Executive summary

• Achieved sixth consecutive quarter of record revenue, with Q2 2024 revenue of $1.3 billion, up 8% year-over-year, and operating income up 55% to $101 million.

• Net income for Q2 was $77 million, up 59% from the prior year, with diluted EPS rising to $0.39.

• Both American Eagle and Aerie brands delivered strong comparable sales growth, with Aerie reaching record Q2 revenue.

• The company maintained a strategic focus on profitable growth, cost discipline, and operational efficiency.

• Full-year operating income outlook raised to $455–$465 million, at the high end of prior guidance.

Financial highlights

• Q2 2024 revenue: $1.3 billion, up 8% year-over-year; comparable sales up 4%.

• Gross profit grew 10% to $499 million, with gross margin expanding 90 basis points to 38.6%.

• Operating margin improved to 7.8% from 5.4% year-over-year; SG&A as a percentage of revenue improved to 26.7%.

• Net income for Q2 was $77 million, representing 6.0% of revenue; diluted EPS was $0.39.

• Digital revenue grew 12% and store revenue increased 7% year-over-year.

Outlook and guidance

• Q3 operating income expected at $120–$125 million, reflecting a $20 million profit shift from Q3 to Q2 due to calendar.

• Q3 comparable sales expected to grow 3–4%, with revenue flat to up slightly.

• Full-year operating income outlook raised to $455–$465 million, up 21–24% from last year.

• Full-year comparable sales growth expected at approximately 4%, with total revenue up 2–3%.

• Full-year capital expenditures expected at $200–$250 million, focused on store expansion and IT upgrades.