AEO Stock Surges on Q2 Earnings Beat

New York, September 3, 2025 - Shares of American Eagle Outfitters (NYSE: AEO) rallied sharply Wednesday after the specialty apparel retailer posted stronger-than-expected second-quarter results and provided robust guidance for the full fiscal year.

American Eagle reported Q2 net revenue of $1.28 billion, flat year-over-year but $50 million above consensus estimates of $1.23 billion. GAAP earnings per share reached $0.45, more than double analysts’ expectations of $0.21. The company’s operating profit of $103 million marked a 2% increase over the prior year, driven by higher demand, lower promotion levels and disciplined expense management.

Chief Executive Officer Jay Schottenstein highlighted the turnaround: “The actions we have taken to better align inventory and strengthen execution laid the groundwork for our results this quarter. 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”.

Following the earnings release, AEO shares climbed 4.4% in Wednesday’s session, trading at $13.51 at market close. The stock has gained more than 18% over the past four weeks, reflecting growing investor confidence in the company’s inventory improvements and margin expansion.

American Eagle reaffirmed its full-year operating income guidance of $255 million to $265 million, supported by ongoing share repurchases totaling $231 million year-to-date, equivalent to a 10% reduction in diluted shares outstanding. Management also pointed to a 3% increase in Aerie comparable sales and tighter merchandise margins as key drivers for sustained profitability.

Investors will be watching AEO’s third-quarter comparable-sales trends and inventory levels as indicators of whether the retailer can maintain its momentum into the holiday season.