American Eagle Outfitters (AEO) reported $1.28bn in net revenue for Q2 FY25, a 1% decline from the previous year. Gross profit was $500m with a gross margin increase to 38.9%. Operating profit rose by 2% to $103m, and earnings per diluted share improved by 15%.

Aerie’s comparable sales increased by 3%, while American Eagle’s fell by 3%. CEO Jay Schottenstein expressed satisfaction with improved business driven by higher demand and reduced promotions. AEO provided guidance for FY25, expecting flat comparable sales and a decline in gross margin.

Adjusted operating income is forecasted between $255m and $265m, excluding first-quarter charges. Schottenstein is optimistic about the fall season, citing stronger product offerings and successful marketing campaigns with Sydney Sweeney and Travis Kelce driving customer engagement and sales growth.

Read more at Yahoo Finance: American Eagle Outfitters posts $1.28bn net revenue in Q2 FY25