American Eagle Outfitters announced its financial results for the second quarter of fiscal 2025, ended August 2, 2025, on September 3, 2025, reporting net income of $77.6 million, or $0.45 diluted EPS, which beat expectations. Sales for the quarter were $1.28 billion, a slight decrease from $1.29 billion in the prior year.
CEO Jay Schottenstein stated that the fall season has started positively, attributing this to stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce. These campaigns led to an uptick in customer awareness, engagement, and comparable sales, with the company gaining 700,000 new customers and experiencing consistently positive traffic in August.
The Sydney Sweeney campaign, launched July 23, resulted in denim sellouts and double-digit traffic growth, with specific items like The Sydney Jacket and The Sydney Jean selling out in one day. The Travis Kelce partnership, launched the day after his engagement, drove three times more sales in one day than past collaborations did in a week, with many items selling out.
The company re-issued its full-year guidance, expecting comparable sales to be approximately flat, which is better than the 0.2% decline analysts anticipated. However, the full-year operating income guidance was revised downward to $255 million to $265 million, from a previous range of $360 million to $375 million, primarily due to the impact of tariffs. The company continues its efforts to reduce sourcing exposure to China to under 10% this year.
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