Aerie powers another strong quarter for American Eagle Outfitters 

Aerie product image
The company’s net revenue jumped 8 per cent in Q2. (Source: Aerie/Facebook)

American Eagle Outfitters has posted a strong sales uplift in its second quarter, with Aerie continuing to drive most of the gain.

The company’s net revenue jumped 8 per cent year-on-year to $1.38 billion in the quarter ended August 1. 

On a comparable basis, sales increased 9 per cent, with Aerie soaring 19 per cent while American Eagle slid 1 per cent.

“The second quarter reflects the value of our AEO Inc portfolio, led by the broad-based momentum of Aerie and Offline,” said CEO Jay Schottenstein.

“We continue to expand Aerie’s reach and deepen brand awareness, leveraging authentic connections to attract new customers and fuel engagement. American Eagle saw sequential improvement from the first quarter, including the fourth consecutive quarter of growth in men’s,” Schottenstein added.

Gross profit for the quarter rose 34 per cent to $672 million, and gross margin expanded 980 basis points to 48.7 per cent.

Operating income grew from $103 million a year ago to $211 million. The company noted this included a net benefit of $161 million related to tariff refunds.

For the full year, the company expects comparable sales to increase in the mid-single digits. 

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