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American Eagle Outfitters — Sep 3, 2025 release

Fiscal 2026 second-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0000950170-25-112837
Open on SEC.gov ↗
Showing in the filing
Operating Income
“$255 to $265 million”
Period
FY2025
Measure
GAAP-tied
Source
Prose
All guidance in this release · 19
Operating income for FY2026
“$255 to $265 million”
Operating Income for FY2025
“$255 to $265 million”
Capital expenditures for FY2025
“approximately $275 million”
Comparable Sales for FY2025
“Approximately Flat”
Gross Margin for Q4 FY2025
“Down YoY”
Gross Margin for Q3 FY2025
“Down YoY”
SG&A for Q3 FY2025
“Dollars Up High Single Digit”
SG&A for Q4 FY2025
“Dollars Flat to Down Slight YoY”
SG&A for FY2025
“Dollars Up YoY”
D&A for Q3 FY2025
“Approximately $54 million”
D&A for Q4 FY2025
“Approximately $56 million”
D&A for FY2025
“Approximately $217 million”
Operating Income for Q3 FY2025
“$95 to $100 million”
Operating Income for Q4 FY2025
“$125 to $130 million”
Tax Rate for Q4 FY2025
“Approximately 25%”
Tax Rate for Q3 FY2025
“Approximately 25%”
Weighted Average Share Count for Q4 FY2025
“Approximately 172 million”
Weighted Average Share Count for Q3 FY2025
“Approximately 172 million”
Weighted Average Share Count for FY2025
“Approximately 174 million”
Exhibit 99.1 · full document
  Exhibit 99.1   AEO Inc. Reports Second Quarter Fiscal 2025 Results • Second quarter operating income of $103 million increased 2% on revenue of $1.28 billion, exceeding expectations • Year-to-date share repurchases total $231 million, reducing shares by 20 million, or approximately 10% of outstanding diluted shares • Provides full year operating income guidance of $255 to $265 million September 3, 2025 – PITTSBURGH – (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the second quarter ended August 2, 2025. “We were pleased to see an improvement in the business during the second quarter driven by higher demand, lower promotions and well-managed expenses, all of which exceeded our expectations,” said Jay Schottenstein, Executive Chairman of the Board and Chief Executive Officer, AEO Inc. “The actions we have taken to better align inventory and strengthen execution laid the groundwork for our results this quarter. Highlighted by Aerie’s top-line increase and better sell-throughs overall, we achieved our second highest enterprise revenues ever recorded for the second quarter. ”The fall season is off to a positive start. Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales. We look forward to building on our progress and the continued strength of our iconic brands to drive higher profitability, long-term growth and shareholder value," he concluded. Second Quarter 2025 Results: • Total net revenue of $1.28 billion was down 1% to last year. Total comparable sales decreased 1%. • Aerie comparable sales grew 3%. American Eagle comparable sales decreased 3%. • Gross profit was $500 million and the gross margin of 38.9% expanded 30 basis points to last year. • Merchandise margins increased 50 basis points, driven primarily by lower markdowns. • Buying, Occupancy and Warehousing (BOW) expenses were flat to last year, deleveraging 20 basis points.     • Selling, general and administrative expense of $342 million decreased 1% and was in-line with last year as a percentage of sales. Lower compensation costs due to recent expense restructuring were partially offset by investments in advertising. • Operating profit was $103 million, an increase of 2% to last year. Operating margin of 8.0% expanded 20 basis points to last year. • Diluted earnings per share was $0.45, up 15% to last year. Average diluted shares outstanding were 172 million. Inventory   Total ending inventory increased 8% to $718 million with units up 3%. The inventory cost increase largely reflected the impact of tariffs. Shareholder Returns   During the second quarter, the company completed its $200 million accelerated share repurchase agreement (ASR), which in aggregate equated to the repurchase of approximately 18 million shares. Year-to-date, the company has completed $231 million in share repurchases, reducing shares by 20 million, roughly 10% of outstanding diluted shares. The company also paid $21 million via its quarterly cash dividend of $0.125 per share, bringing year-to-date cash dividends to $43 million. Capital Expenditures   Capital expenditures totaled $71 million in the second quarter, bringing year-to-date spend to $133 million. The company continues to expect 2025 capital expenditures to be approximately $275 million. Outlook   The following outlook includes estimated tariffs based on the latest trade policies. Third Quarter 2025 Fourth Quarter 2025 Fiscal 2025 Comparable Sales Up Low Single Digit Up Low Single Digit Approximately Flat Gross Margin Down YoY Down YoY Down YoY SG&A Dollars Up High Single Digit Dollars Flat to Down Slight YoY Dollars Up YoY D&A Approximately $54 million Approximately $56 million Approximately $217 million Operating Income $95 to $100 million $125 to $130 million $255 to $265 million on an adjusted basis*     Tax Rate Approximately 25% Approximately 25% Approximately 25% Weighted Average Share Count Approximately 172 million Approximately 172 million Approximately 174 million   * Excludes impairment and restructuring charges of $17 million recorded in the First Quarter 2025, as disclosed in the Company's Form 10-Q filed on June 5, 2025.   Webcast and Supplemental Financial Information   Management will host a conference call today at 4:30 p.m. Eastern Time. To access the live webcast and audio replay, please click here. Additionally, a financial results presentation is posted in the Investor Relations section on AEO’s website, www.aeo-inc.com. About American Eagle Outfitters, Inc.   American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer with a portfolio of beloved apparel brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed. Rooted in optimism, inclusivity and authenticity, AEO’s brands empower every customer to celebrate their unique personal style by offering casual, comfortable, timeless outfitting and high-quality products that are made to last. AEO Inc. operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through a global network of license partners. Additionally, the company operates a robust e-commerce business across its brands. For more information, visit aeo-inc.com. Forward-Looking Non-GAAP Measures   Our outlook includes operating income presented on an adjusted or “non-GAAP” basis, which is a non-GAAP financial measure. Non-GAAP financial measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles (GAAP) and are not necessarily comparable to similar measures presented by other companies. The company is not able to provide a quantitative reconciliation of forward-looking adjusted operating income to the most directly comparable forward-looking GAAP financial measure because the Company is unable to provide a meaningful or accurate reconciliation or estimation of certain reconciling items without unreasonable effort, due to the inherent difficulty in forecasting and quantifying measures that are necessary for such reconciliation. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This release and related statements by management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which represent management’s expectations or beliefs concerning future events, including, without limitation, the results for third and fourth quarters and annual fiscal 2025. Words such as “outlook,” "estimate," "project," "plan," "believe," "expect," "anticipate," "intend," “may,” “potential,” and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. All forward-looking statements made by the company are inherently uncertain because they are based on     assumptions and expectations concerning future events and are subject to change based on many important factors, some of which may be beyond the company’s control. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise and even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. The following factors, in addition to the risks disclosed in Item 1A., Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended February 1, 2025 and in any other filings that we may make with the Securities and Exchange Commission, in some cases have affected, and in the future could affect, the company's financial performance and could cause actual results to differ materially from those expressed or implied in any of the forward-looking statements included in this release or otherwise made by management: the risk that the company’s operating, financial and capital plans may not be achieved; our inability to anticipate fluctuations in customer demand and respond to changing consumer preferences and fashion trends and to manage our inventory commensurately; the seasonality of our business; our inability to achieve planned store financial performance; our inability to react to raw material cost, labor and energy cost increases; our inability to gain market share in the face of declining shopping center traffic or attract customers to our stores; our inability to respond to changes in e-commerce and leverage omni-channel capabilities; our inability to execute on our key business priorities; our inability to expand internationally; difficulty with our international merchandise sourcing strategies; the impact that import tariffs and other trade restrictions imposed by the U.S., China or other countries have had, and may continue to have, on our product costs, as well as continued uncertainties with tariffs and other trade restrictions; the possibility that product costs may be affected by other foreign trade issues, such as currency exchange rate fluctuations, increasing prices for raw materials, supply chain issues, political instability or other reasons; challenges with information technology systems, including safeguarding against security breaches; changes to U.S. or other countries' trade policies and tariff and import/export regulations, including, without limitation, uncertainty with respect to the U.S./China trade agreement; and global economic, public health, social, political and financial conditions, and the resulting impact on consumer confidence and consumer spending, as well as other changes in consumer discretionary spending habits, which could have a material adverse effect on our business, results of operations and liquidity. The use of the “company,” “AEO,” “we,” "us," and “our” in this release refers to American Eagle Outfitters, Inc. CONTACT Line Media 412-432-3300 LineMedia@ae.com     AMERICAN EAGLE OUTFITTERS, INC.   CONSOLIDATED BALANCE SHEETS   (unaudited)   (In thousands)   August 2, 2025     August 3, 2024   Assets             Current assets:             Cash and cash equivalents   $ 126,780     $ 191,837   Merchandise inventory     718,337       663,659   Accounts receivable, net     237,355       231,750   Prepaid expenses     167,295       136,787   Other current assets     21,335       24,412   Total current assets     1,271,102       1,248,445   Operating lease right-of-use assets     1,604,457       1,153,354   Property and equipment, at cost, net of accumulated depreciation     773,872       722,193   Goodwill, net     225,231       225,213   Non-current deferred income taxes     48,322       87,245   Intangible assets, net     40,674       44,241   Other assets     97,374       59,625   Total assets   $ 4,061,032     $ 3,540,316   Liabilities and Stockholders’ Equity             Current liabilities:             Accounts payable   $ 247,578     $ 259,734   Current portion of operating lease liabilities     321,334       307,570   Accrued compensation and payroll taxes     49,534       55,441   Unredeemed gift cards and gift certificates     57,376       51,791   Accrued income and other taxes     30,631       41,631   Other current liabilities and accrued expenses     76,932       78,219   Total current liabilities     783,385       794,386   Non-current liabilities:             Non-current operating lease liabilities     1,473,119       1,015,455   Long-term debt, net     203,000       —   Other non-current liabilities     56,918       36,109   Total non-current liabilities     1,733,037       1,051,564   Commitments and contingencies     —       —   Stockholders’ equity:             Preferred stock     —       —   Common stock     2,496       2,496   Contributed capital     372,826       353,608   Accumulated other comprehensive loss     (34,646 )     (39,271 ) Retained earnings     2,416,980       2,320,348   Treasury stock     (1,213,046 )     (942,815 ) Total stockholders’ equity     1,544,610       1,694,366   Total liabilities and stockholders’ equity   $ 4,061,032     $ 3,540,316                 Current Ratio     1.62       1.57                     AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share amounts) (unaudited)     13 Weeks Ended         August 2, 2025     August 3, 2024         (In thousands)   (Percentage of revenue)     (In thousands)   (Percentage of revenue)     Total net revenue   $1,283,675   100.0  %   $1,291,058   100.0 %   Cost of sales, including certain buying, occupancy and warehouse expenses   783,713   61.1     792,162   61.4     Gross profit   499,962   38.9     498,896   38.6     Selling, general and administrative expenses   342,211   26.7     345,313   26.7     Depreciation and amortization expense   54,666   4.2     52,474   4.1     Operating income   $103,085   8.0     $101,109   7.8      Interest expense (income), net   1,919   0.1     (730)   (0.1)     Other (income), net   (172)   (0.0)     (1,715)   (0.1)     Income before income taxes   $101,338   7.9     $103,554   8.0     Provision for income taxes   23,705   1.9     26,290   2.0     Net income   $77,633   6.0 %   $77,264   6.0 %                           Basic net income per common share   $0.45         $0.40         Diluted net income per common share   $0.45         $0.39                                 Weighted average common shares outstanding - basic   170,756         193,661         Weighted average common shares outstanding - diluted   171,659         197,757               AMERICAN EAGLE OUTFITTERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share amounts) (unaudited)     26 Weeks Ended           August 2, 2025       August 3, 2024           (In thousands)     (Percentage of revenue)       (In thousands)     (Percentage of revenue)       Total net revenue   $ 2,373,275     100.0   %   $ 2,434,925     100.0   %   Cost of sales, including certain buying, occupancy and warehouse expenses     1,550,892       65.3         1,471,791       60.5       Gross profit     822,383       34.7         963,134       39.5       Selling, general and administrative expenses     680,998       28.7         678,806       27.9       Impairment and restructuring charges     17,119       0.7         —       0.0       Depreciation and amortization expense     106,363       4.5         105,384       4.3       Operating income   $ 17,903       0.8       $ 178,944       7.3       Interest expense (income), net     1,700       0.1         (4,168 )     (0.2 )     Other (income), net     (523 )     (0.0 )       (3,111 )     (0.1 )     Income before income taxes   $ 16,726       0.7       $ 186,223       7.6       Provision for income taxes     3,992       0.2         41,209       1.6       Net income   $ 12,734       0.5   %   $ 145,014       6.0   %                                   Basic net income per common share   $ 0.07             $ 0.74             Diluted net income per common share   $ 0.07             $ 0.73                                             Weighted average common shares outstanding - basic     175,156               195,048             Weighted average common shares outstanding - diluted     176,482               199,406                     AMERICAN EAGLE OUTFITTERS, INC.     NET REVENUE BY SEGMENT     (unaudited)       13 Weeks Ended 26 Weeks Ended     (In thousands) August 2, 2025 August 3, 2024 August 2, 2025 August 3, 2024     Net Revenue:                         American Eagle $ 800,406     $ 827,638     $ 1,494,271     $ 1,552,382     Aerie   429,084       415,646       788,872       788,298     Other   61,523       57,457       105,494       112,441     Intersegment Elimination   (7,338 )     (9,683 )     (15,362 )     (18,196 )   Total Net Revenue $ 1,283,675     $ 1,291,058     $ 2,373,275     $ 2,434,925           AMERICAN EAGLE OUTFITTERS, INC.   STORE INFORMATION   (unaudited)     13 Weeks Ended     26 Weeks Ended     August 2, 2025     August 2, 2025   Consolidated stores at beginning of period   1,176       1,172   Consolidated stores opened during the period           AE Brand  (1)   2       3   Aerie (incl. OFFL/NE) (2)   6       9   Todd Snyder   3       4   Unsubscribed   1       2   Consolidated stores closed during the period           AE Brand (1)   (1 )     (1 ) Aerie (incl. OFFL/NE)  (2)   (2 )     (4 ) Unsubscribed   —       —   Total consolidated stores at end of period   1,185       1,185               Stores by Brand           AE Brand  (1)   829         Aerie (incl. OFFL/NE) (2)   325         Todd Snyder   23         Unsubscribed   8         Total consolidated stores at end of period   1,185                     Total gross square footage at end of period (in '000)   7,266       7,266               International license locations at end of period (3)   365       365               (1)  AE Brand includes AE stand alone locations, AE/Aerie side-by side locations, AE/OFFL/NE side-by-side locations, and AE/Aerie/OFFL/NE side-by-side locations.   (2)  Aerie (incl. OFFL/NE) includes Aerie stand alone locations, OFFL/NE stand alone locations, and Aerie/OFFL/NE side-by-side locations.   (3)  International license locations (retail stores and concessions) are not included in the consolidated store data or the total gross square footage calculation.
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.