American Eagle Outfitters reports Q2 revenue growth driven by Aerie

American Eagle Outfitters reported second-quarter revenue of $1.4 billion, an 8% increase year over year, with comparable sales rising 6%. The company’s earnings of $0.79 per share significantly exceeded the previous year’s $0.45, a result bolstered by a $161 million benefit from tariff refunds.

Growth was primarily driven by the Aerie brand and its OFFLINE activewear line, which generated $536 million in revenue, marking a 25% increase. Aerie’s comparable sales rose 19%, supported by demand in apparel, intimates, and activewear. In contrast, the namesake American Eagle brand saw sales grow by 1% with a 1% decline in comparable sales.

Following a period of high awareness spending, management indicated a shift toward digital advertising focused on driving sales. Despite the profit beat, shares fell approximately 10% in after-hours trading as the company guided American Eagle same-store sales to remain roughly flat for the remainder of the year.