American Eagle's Aerie Brand Sees Sales Growth Slow in 2Q

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American Eagle Outfitters said same-store sales for its fast-growing Aerie brand slowed down from prior quarters.

The apparel company said Wednesday that total company revenue for the second quarter rose 8% to $1.38 billion. Analysts surveyed by FactSet forecast revenue of $1.37 billion.

Second-quarter total same-store sales rose 6%, just behind the 6.7% growth that Wall Street projected. Same-store sales in American Eagle's namesake brand fell 1%, while Aerie's rose 19%. Aerie's same-store sales increased more than 20% during the previous two quarters.

Shares dropped 11% to $15 in after-hours trading.

American Eagle's second-quarter profit was $134.1 million, or 79 cents a share, up from $77.6 million, or 45 cents a share, a year earlier. Analysts anticipated 22 cents a share.

The company received $196 million in tariff refunds, which benefited second-quarter results and are included in its new guidance.

American Eagle now expects operating income for 2026 to be $540 million to $550 million, up from a previous range of $390 million to $410 million.

In the current third quarter, the retailer expects same-store sales will increase by a mid-to-high single digit percentage. Analysts were forecasting a 3.7% increase.

 
 

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