American Eagle Outfitters (AEO) exceeded expectations in Q2 2025, reporting operating income of $103 million on revenue of $1.28 billion. Aerie’s growth and improved sell-throughs contributed to the second-highest enterprise revenues ever seen for the second quarter. AEO completed $231 million in share repurchases YTD, reducing outstanding shares by 10%.

For FY 2025, AEO expects operating income of $255 million – $265 million on an adjusted basis. Q2 2025 capital expenditures totaled $71 million, with YTD spending at $133 million. AEO anticipates 2025 capital expenditures to be approximately $275 million. Investors looking for AI stocks with greater upside potential may find other options more attractive.

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Read more at Yahoo Finance: American Eagle Outfitters (AEO) Releases Q2 2025 Financial Results