American Eagle Outfitters sees flat gross margin, higher costs in Q3 after tariff-boosted quarter
AEO•What drove the quarter
- Tariff refunds - Net benefit from tariff refunds significantly boosted gross profit and operating income in Q2.
- Aerie and OFFLINE growth - Strong performance at Aerie and OFFLINE drove overall revenue and comparable sales growth.
- American Eagle brand softness - American Eagle comparable sales declined 1%, with improvement in men's offset by weakness in women's.
Quarterly results beat estimates
American Eagle Outfitters reported fiscal second-quarter revenue rose 8%, slightly beating analyst expectations.
EPS for fiscal Q2 rose to $0.79, boosted by a tariff refund benefit.
Aerie and OFFLINE revenue grew 25%, while American Eagle comparable sales fell 1%.
Key reported figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Slight Beat* | $1.38 bln | $1.37 bln (13 Analysts) |
| Q2 EPS | $0.79 | ||
| Q2 Net Income | $133.69 mln | ||
| Q2 Total Comparable Sales Growth | 6.00% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
