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Aug 02, 2025
American Eagle Q2 2025 Earnings Report
American Eagle reported Q2 2025 results with slight revenue decline but stronger earnings driven by margin improvements and cost control.
Key Takeaways
American Eagle Outfitters delivered solid results for Q2 FY2025, achieving its second highest Q2 revenue ever despite a slight year-over-year decline. Improved merchandise margins, lower markdowns, and effective expense management contributed to a rise in EPS and operating income.
Revenue by Segment
Forward Guidance
AEO expects Q3 and Q4 2025 comparable sales to grow in the low single digits, but gross margin to decline year-over-year. Full-year operating income is guided at $255–$265 million (adjusted).
Positive Outlook
- Q3 comparable sales expected to grow low single digits.
- Q4 comparable sales expected to grow low single digits.
- Operating income guidance for FY25 at $255M–$265M.
- Full-year SG&A dollars expected to increase YoY to support growth.
- Marketing campaigns are driving stronger customer engagement.
Challenges Ahead
- Gross margin expected to decline YoY across Q3, Q4, and full year.
- SG&A expected to be up high single digits in Q3.
- Tariff impacts contributing to higher inventory costs.
- Expected continued pressure on merchandise margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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