American Eagle Outfitters Reports Q2 Earnings, Highlights Impact of Tariffs

American Eagle Outfitters reported a net revenue of $1.28 billion for the second quarter ending August 2, 2025, marking a 1% decrease from the previous year. Total comparable sales also declined by 1%. The Aerie brand saw a 3% increase in comparable sales, while the American Eagle brand experienced a 3% decrease.

Gross profit for the quarter was $500 million, with a gross margin improvement of 30 basis points to 38.9%, primarily due to reduced markdowns. Operating income rose by 2% year-over-year to $103 million, and diluted earnings per share increased by 15% to $0.45.

Inventory levels at the end of the quarter were up 8% to $718 million, with unit counts rising by 3%. The company attributed the inventory cost increase largely to the impact of tariffs.

Looking ahead, American Eagle Outfitters anticipates low single-digit growth in comparable sales for the third and fourth quarters. However, the company expects tariffs to impact operating income by approximately $20 million in the third quarter and between $40 million to $50 million in the fourth quarter.

CEO Jay Schottenstein stated, "The fall season is off to a positive start. Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement, and comparable sales. We look forward to building on our progress and the continued strength of our iconic brands to drive higher profitability, long-term growth, and shareholder value."