Overview

• Second-quarter earnings per share were $0.45 on revenue of $1.28 billion, topping estimates of $0.20 and $1.24 billion even as revenue slipped 1% year over year.
• Comparable sales declined 1% overall, with Aerie up about 3% and the American Eagle banner down about 3%.
• Management reinstated full-year guidance calling for roughly flat comparable sales and projected low‑single‑digit comp growth for both the third and fourth quarters.
• Inventory rose 8% to $718 million, with the company citing tariffs as the primary driver of higher inventory costs and cautioning on margin pressure.
• American Eagle completed a $200 million accelerated buyback and has repurchased about $231 million year to date, reducing diluted shares by roughly 10%, as the stock jumped about 23%–25% and several analysts raised price targets.