American Eagle reported a record revenue increase of 8 per cent year-on-year to $1.38bn, driven by a comparable sales growth of 6 per cent.
Gross profit surged by 34 per cent compared to last year to $672m, which was boosted by a net benefit of $179m related to tariff refunds.
The company’s operating profit was $211m in comparison to $103m last year, which includes a tariff refund benefit of $161m. American Eagle’s diluted earnings per share rose to $0.79 in comparison to $0.45 last year.
The fashion retailer’s selling, general, and administrative expenses went up by 19 per cent to $408m, which was mainly driven by planned investments in advertising campaigns.
In particular, Aerie’s comparable sales surged by 19 percent, while American Eagle’s same-store sales went down by 1 per cent.
The brands Aerie and Offline’s total revenue increased by 25 per cent which boosted the overall performance for the company.
Jay Schottenstein, CEO of American Eagle said: “The second quarter reflects the value of our AEO portfolio, led by the broad-based momentum of Aerie and Offline, alongside encouraging progress at American Eagle.
“We continue to expand Aerie’s reach and deepen brand awareness, leveraging authentic connections to attract new customers and fuel engagement.
AE saw sequential improvement from the first quarter, including the fourth consecutive quarter of growth in men’s, and we remain focused on opportunities to drive greater consistency in the women’s business.”
Moving forward, the business adjusted its financial forecast to reflect the company’s positive impact from tariff refunds.
American Eagle now expects full-year operating income in the range of $540m to $550m and expects a comparable sales increase within the mid-single digits range.
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