AEO explained that due to an increase in demand with collections resonating well with customers during June and July, its second-quarter revenue and operating profits “exceeded expectations.”

Its brands, Aerie reported an “all-time-high” $380m rise in revenue, 2% more than the prior year whilst American Eagle’s revenue declined to $767m.

“It’s encouraging to see positive momentum continue into the third quarter, across brands and channels,” commented Jay Schottenstein, AEO’s executive chairman of the board and CEO.

Key highlights from AEO Q2 results:

  • Total net revenue of $1.2bn was up slightly in the second quarter of 2022
  • Operating income was $65m, reflecting a 5.4% margin
  • Net income was $48.6m in the second quarter from a loss of $42.5m in the prior year

AEO raises its FY outlook

“Looking to the second half, we are excited about future product arrivals, leveraging the positive response to early fall goods and delivering innovative customer connections,” continued Schottenstein.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, he notes the company is planning to keep a “sharp eye on the consumer environment and planning appropriately”.

He added: “We are taking action to position the business for improved profit, with preliminary initiatives included in our increased 2023 outlook. As we continue to optimise our operations, I am confident in our ability to strengthen profitability longer-term.”

AEO is now anticipating operating income ranging from $325m to $350m, which marks an upward revision from the earlier guidance of $250m to $270m.

The company has adjusted its full-year revenue forecast to be up low single digits to last year, compared to prior guidance for revenue in the range of flat to down low single digits.

In April, AEO and thredUP announced the launch of RE/AE, a digital resale shop of secondhand and exclusive vintage American Eagle clothing.