Overview

• Q2 revenue came in at $1.28 billion, down about 1% versus the company’s prior expectation for a roughly 5% decline, with comparable sales off 1% rather than the projected 3% drop.
• Operating income rose to $103 million and EPS of $0.45 topped the $0.20 consensus, while net income was $77.6 million, roughly flat year over year.
• Management raised full-year adjusted operating income guidance to $255 million–$265 million and now expects low‑single‑digit comparable‑sales gains in Q3 and Q4 with flat comps for the year.
• Executives credited improved demand, fewer promotions, and expense discipline, with analysts noting viral campaigns featuring Sydney Sweeney and Travis Kelce and Aerie’s top‑line growth as supportive factors.
• Forbes flagged ongoing risks including a 5.7% operating margin over the past 12 months, cash at about 3% of assets, debt near $2 billion, and a history of sharp drawdowns in past downturns.