American Eagle earns 77.6 million in the second quarter and confirms its full-year guidance

American Eagle is relying on promotions and new products to keep the pulse of demand. The U.S. company has raised its forecasts for the third quarter and the full year, after closing the second quarter (period ended August 2) with a turnover of 1.283 billion dollars, 1% less than the previous year.

For the period, net income came in at $77.6 million, virtually flat compared to $77.2 million for the same period in 2024. By brand, Aerie’s comparable sales rose 3%, while the group’s flagship American Eagle declined 3%. Overall, the U.S. conglomerate’s comparable sales declined by 1%.

Gross margin was 38.9%, 30 basis points higher than in 2024, driven by lower markdowns. Operating income, meanwhile, rose 2% to $103 million from the second quarter of the previous year, with an operating margin of 8%.

American Eagle revenue contracted 1% to $1.283 billion in the second quarter.

For the full year, American Eagle expects adjusted operating income of $255 million to $265 million. The company also expects comparable sales to be flat for the year, with low-single-digit growth in the third and fourth quarters.

During the first half of the year, the group invested US$231 million in share buybacks, reducing its outstanding capital by 10%. It also distributed US$43 million in dividends. At the end of the quarter, the company operated 1,185 company-owned stores and 365 licensed outlets abroad.

In parallel, American Eagle has stepped up its marketing efforts to bolster demand, including a controversial denim campaign with actress Sydney Sweeney and collaborations with Coco Gauff and Jenna Ortega. Most recently, the group has partnered with Tru Kolors, the brand of NFL player Travis Kelce, extending its notoriety following the announcement of his engagement to singer Taylor Swift.

The company frames these initiatives as part of its strategy to engage younger customers and maintain brand relevance in a more moderate consumer environment.