American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands. It also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand. The company sells its products through own and licensed retail stores; concession-based shops-within-shops; and digital channels, such as www.ae.com, www.aerie.com, www.toddsnyder.com, and www.unsubscribed.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.

American Eagle Outfitters, Inc.

The S&P 500 Index ($SPX) (SPY) today is up by +0.31%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.28%. September E-mini S&P futures (ESU25) are up +0.29%, and September E-mini Nasdaq futures (NQU25) are up +0.26%.
Stock indexes are moving higher today as bond yields decline on expectations that the Fed will start cutting interest rates as soon as this month. Today’s weak US labor market reports knocked bond yields lower and reinforced speculation that the Fed will cut rates as soon as the September 16-17 FOMC meeting after today’s Aug ADP employment change rose less than expected and weekly jobless claims rose to a 10-week high. The 10-year T-note yield fell to a 4-month low of 4.17%, and the swaps market shows the chances of a Fed rate cut this month rising to 95%.
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Stocks maintained their gains on signs of strength in the service sector after the Aug ISM services index expanded at the fastest pace in six months.
Meanwhile, stocks are being undercut by weakness in chipmakers, led by a -5% fall in Texas Instruments after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped.
The Aug ADP employment change rose +54,000, weaker than expectations of +68,000.
US weekly initial unemployment claims rose by +8,000 to a 10-week high of 237,000, showing a weaker labor market than expectations of 230,000.
US Q2 nonfarm productivity was revised upward to +3.3% from the previously reported +2.4%, better than expectations of +2.7%. Q2 unit labor costs were revised downward to +1.0% from the previously reported +1.6%, weaker than expectations of +1.2%.
The US Aug ISM services index rose +1.9 to 52.0, stronger than expectations of 51.1 and the strongest pace of expansion in six months.
Looking ahead to Friday’s US economic reports, Aug nonfarm payrolls are expected to rise by +75,000, and the Aug unemployment rate is expected to rise by 0.1 to 4.3%. Aug average hourly earnings are expected to increase +0.3% m/m and +3.7% y/y.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances of a -25 bp rate cut at 95% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 53% for a second -25 bp rate cut at the following meeting on October 28-29.
Overseas stock markets today are mixed. The Euro Stoxx 50 is up +0.31%. China’s Shanghai Composite fell to a 2-week low and closed down -1.25%. Japan’s Nikkei Stock 225 closed up +1.53%.
Interest Rates
December 10-year T-notes (ZNZ5) today are up +3 ticks, and the 10-year T-note yield is down -1.9 bp to 4.197%.
Dec T-notes climbed to a 4.75-month high today, and the 10-year T-note yields fell to a 4-week low of 4.168%. Signs of a slowdown in the US labor market are bullish for T-notes after today’s weaker-than-expected ADP employment report and the rise in weekly initial unemployment claims to a 10-week high. The labor market weakness has boosted the chances of a Fed rate cut at the September 16-17 FOMC meeting to 95%, according to the swaps market. Also, today’s upward revision to Q2 nonfarm productivity and downward revision to Q2 unit labor cost are supportive for T-note prices. In addition, T-notes garnered support from today’s 1% fall in WTI crude prices to a 2-week low, which reduced inflation expectations as the 10-year breakeven inflation rate fell to a 1.5-week low of 2.392%.
T-notes fell back from their best levels after the Aug ISM services index rose more than expected to a 6-month high, a hawkish factor for Fed policy.
European government bond yields today are moving lower. The 10-year German bund yield is down -2.4 bp to 2.717%. 10-year UK gilt yield is down -2.0 bp to 4.728%.
Eurozone July retail sales fell -0.5% m/m, weaker than expectations of -0.3% m/m and the biggest decline in 13 months.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Homebuilders are climbing today after the 10-year T-note yield fell to a 4-month low, a bullish factor for housing demand. PulteGroup (PHM) and Toll Brothers (TOL) are up more than +3%. Also, Lennar (LEN) and DR Horton (DHI) are up more than +2%.
Hewlett Packard Enterprise (HPE) is up more than +5% to lead gainers in the S&P 500 after reporting Q3 net revenue of $9.14 billion, stronger than the consensus of $8.65 billion.
T. Rowe Price Group (TROW) is up more than +5% after Goldman Sachs said it will invest as much as $1 billion in the company and team up with the asset manager to sell private-market products to retail investors.
American Eagle Outfitters (AEO) is up more than +31% after reporting Q2 net revenue of $1.28 billion, better than the consensus of $1.23 billion.
Ciena (CIEN) is up more than +23% after reporting Q3 adjusted EPS of 67 cents, stronger than the consensus of 53 cents.
Credo Technology Group (CRDO) is up more than +10% after reporting Q1 adjusted EPS of 52 cents, well above the consensus of 35 cents.
Amazon.com (AMZN) is up more than +2% to lead gainers in the Nasdaq 100 and Dow Jones Industrials after Business Insider reported the company is testing a new AI-powered workspace software called Quick Suite.
Genuine Parts (GPC) is up more than +2% after appointing two new directors to its board in cooperation with Elliott Investment Management.
Salesforce (CRM) is down more than -6% to lead losers in the Dow Jones Industrials after forecasting Q3 revenue of $10.24 billion to $10.29 billion, the midpoint below the consensus of $10.29 billion.
Texas Instruments (TXN) is down more than -5% to lead losers in the Nasdaq 100 and weigh on chip makers after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped. Also, NXP Semiconductors NV (NXPI) and GlobalFoundries (GFS) are down more than -2%. In addition, Advanced Micro Devices (AMD) is down more than -1%, and Analog Devices (ADI) is down -0.71%.
Health insurance stocks are sliding today after executives from Elevance Health said at the Wells Fargo Health Care Conference that it no longer expects Medicaid margins to improve in the second half of the year. As a result, Elevance Health (ELV), Centene (CNC), and Molina Healthcare (MOH) are down more than -4%.
Caleres (CAL) is down more than -11% after reporting Q2 gross margin of 43.4%, below the consensus of 44.6%.
Gitlab Inc (GTLB) is down more than -9% after forecasting 2026 revenue of $936 million to $942 million, the midpoint below the consensus of $940 million.
Science Applications International (SAIC) is down more than -4% after reporting Q2 revenue of $1.77 billion, weaker than the consensus of $1.86 billion, and cutting its 2026 revenue forecast to $7.25 billion-$7.33 billion from a previous forecast of $7.60 billion-$7.75 billion, well below the consensus of $7.63 billion.
Old Dominion Freight Line (ODFL) is down more than -2% after reporting less-than-truckload (LTL) tons per day for Aug fell -9.2% y/y.
Earnings Reports(9/4/2025)
Broadcom Inc (AVGO), Ciena Corp (CIEN), Copart Inc (CPRT), Docusign Inc (DOCU), Guidewire Software Inc (GWRE), Lululemon Athletica Inc (LULU), Samsara Inc (IOT), Science Applications International (SAIC), Toro Co/The (TTC), UiPath Inc (PATH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Supported by Fed Rate Cut Expectations

Shares of American Eagle Outfitters, Inc. AEO have jumped more than 24% in after-hours trading yesterday, after it reported solid second-quarter fiscal 2025 results and reinstated guidance for fiscal 2025. The company delivered top and bottom-line beats in the fiscal second quarter, with the latter also increasing year over year.
AEO posted earnings of 45 cents per share in the fiscal second quarter, surpassing the Zacks Consensus Estimate of 20 cents. Also, the bottom line increased 15% from the year-earlier quarter.
Shares of the Zacks Rank #3 (Hold) company have surged 65.7% in the past three months compared with the industry’s growth of 5.9%.
An Insight Into AEO’s Q2 Revenues
Total net revenues of $1.28 billion fell 1% year over year but came above the Zacks Consensus Estimate of $1.23 billion. Consolidated comparable sales (comps) fell 1% in the quarter. A lower average unit price was largely offset by higher transaction volumes, which benefited from positive traffic within the selling channels. The company witnessed demand pick up as the quarter progressed. July was the best month of the reported quarter as AEO introduced the initial back-to-school product collections. Our model predicted negative comps of 3% for the fiscal second quarter.
American Eagle Outfitters, Inc. Price, Consensus and EPS Surprise
Brand-wise, revenues declined 3.3% year over year to $800.4 million at the American Eagle brand. Also, comps for the brand fell 3%.
Revenues jumped 3.2% year over year to $429.1 million for the Aerie brand. Comps for the Aerie brand rose 3%. We expected a sales decline of 4.9% year over year at the American Eagle brand and 4.7% at Aerie in the reported quarter.
An Insight Into AEO’s Margins & Expenses
Gross profit inched up 0.2% year over year to $500 million. The gross margin of 38.9% expanded 30 basis points (bps) from the year-ago quarter, owing to a 50-bps rise in merchandise margins, backed by lower markdowns. Additionally, buying, occupancy and warehousing expenses were flat year over year, deleveraging 20 bps due to lower sales.
Selling, general and administrative (SG&A) expenses dipped 1% year over year to $342.2 million. As a percentage of sales, SG&A expenses were flat year over year. While the company benefited from lower compensation costs, this was partly offset by higher advertising spending.
American Eagle reported an adjusted operating income of $103.1 million, up 2% from the prior-year quarter.
AEO’s Financial Health Snapshot
American Eagle ended the fiscal second quarter with cash and cash equivalents of $126.8 million, with a net long-term debt of $203 million. Total shareholders’ equity was $1.54 billion as of Aug. 2, 2025. The company had a total liquidity of roughly $400 million. It drew down $200 million from its revolver to aid the buyback program and seasonal cash needs. By year-end, it projects repaying the majority of outstanding debt and starting to rebuild cash. Inventory increased 8% year over year to $718.3 million at the end of the reported quarter.
Capital expenditures were $71 million in the fiscal second quarter, with a year-to-date spend of $133 million. The company anticipates incurring capital expenditures of $275 million for fiscal 2025.
In the fiscal second quarter, American Eagle completed its $200-million accelerated share repurchase agreement (ASR), which represents an aggregate repurchase of nearly 18 million shares. Year-to-date, it has repurchased $231 million, reducing the number of shares by 20 million, which is approximately 10% of the outstanding diluted shares. AEO also paid $21 million as quarterly cash dividends, bringing year-to-date dividends of $43 million.
What to Expect From AEO Ahead?
For the third quarter of fiscal 2025, the company expects comps to rise in the low single digits. The gross margin is projected to be down year over year, while SG&A dollars are expected to rise in the high single digits. Depreciation and amortization are estimated at $54 million, and operating income is anticipated to be $95-$100 million, including nearly $20 million of higher tariff costs. The effective tax rate is expected to be around 25% and the weighted average share count is projected at 172 million shares. Buying, occupancy and warehousing costs are likely to increase due to store growth for Aerie, both offline and online, and higher digital penetration, leading to slight deleverage. SG&A is forecast to rise in the high single digits, thanks to investments in advertising.
For the fourth quarter of fiscal 2025, the company expects comps to rise in the low single digits. The gross margin is projected to be down year over year, while SG&A dollars are forecast to remain flat to down slightly year over year. Depreciation and amortization are anticipated at $56 million, and operating income is anticipated to be $125-$130 million, including approximately $40-$50 million of tariff impact in the fiscal fourth quarter. SG&A is likely to drop slightly in the quarter. The effective tax rate is expected to be around 25% and the weighted average share count is projected at 172 million shares.
The company is prioritizing investments across its digital channel, with foundational improvements to the shopping experience. It is focused on optimizing its store fleet to ensure the best locations, offering a seamless customer experience and tapping additional growth opportunities. This year, the company is on track to open roughly 30 Aerie and offline locations and remodel 40-50 AE stores for a modern design. It anticipates shutting down 35-40 American Eagle locations by the end of the year.
Management is impressed by the progress made in the reported quarter. The company is focused on building upon its sales momentum, managing costs and making continued improvements to deliver profitability. The outlook reflects projected tariffs based on the latest trade policies. For fiscal 2025, AEO expects comps to stay flat year over year. The gross margin is projected to be down year over year, while SG&A dollars are forecast to be up year over year. Depreciation and amortization are anticipated at $217 million and adjusted operating income is anticipated to be $255-$265 million. The effective tax rate is expected to be around 25%, and the weighted average share count is projected at 174 million shares.
Eye These Solid Picks in Retail
Levi Strauss & Co. LEVI, designer and marketer of jeans, casual wear and related accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 66% and 1.7%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. BIRD, a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

American Eagle Surges on Solid Q2 Earnings, Aerie Comps Rise 3%

In trading on Thursday, apparel stores shares were relative leaders, up on the day by about 5%. Leading the group were shares of Duluth Holdings, up about 70.3% and shares of American Eagle Outfitters up about 30.2% on the day.
Also showing relative strength are general contractors & builders shares, up on the day by about 3% as a group, led by Comstock Holding Companies, trading up by about 6.8% and Hovnanian Enterprises, trading up by about 4.3% on Thursday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday Sector Leaders: Apparel Stores, General Contractors & Builders

The S&P 500 Index ($SPX) (SPY) today is up by +0.17%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.14%. September E-mini S&P futures (ESU25) are up +0.19%, and September E-mini Nasdaq futures (NQU25) are up +0.13%.
Stock indexes are moving higher today as bond yields decline on expectations that the Fed will start cutting interest rates as soon as this month. Signs of a weaker US labor market are knocking bond yields lower and reinforcing speculation that the Fed will cut rates as soon as the September 16-17 FOMC meeting after today’s Aug ADP employment change rose less than expected and weekly jobless claims rose to a 10-week high. The 10-year T-note yield fell to a 4-month low of 4.17% today, and the swaps market shows the chances of a Fed rate cut this month rising to 99%.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Meanwhile, stocks are being undercut by weakness in chipmakers, led by a -5% fall in Texas Instruments after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped.
The Aug ADP employment change rose +54,000, weaker than expectations of +68,000.
US weekly initial unemployment claims rose by +8,000 to a 10-week high of 237,000, showing a weaker labor market than expectations of 230,000.
US Q2 nonfarm productivity was revised upward to +3.3% from the previously reported +2.4%, better than expectations of +2.7%. Q2 unit labor costs were revised downward to +1.0% from the previously reported +1.6%, weaker than expectations of +1.2%.
The remainder of this week’s USeconomic calendaris busy. Later today, the Aug ISM services index is expected to climb by +0.9 to 51.0. On Friday, Aug nonfarm payrolls are expected to rise by +75,000, and the Aug unemployment rate is expected to rise by 0.1 to 4.3%. Aug average hourly earnings are expected to increase +0.3% m/m and +3.7% y/y.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances of a -25 bp rate cut at 99% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 56% for a second -25 bp rate cut at the following meeting on October 28-29.
Overseas stock markets today are mixed. The Euro Stoxx 50 is up +0.20%. China’s Shanghai Composite fell to a 2-week low and closed down -1.25%. Japan’s Nikkei Stock 225 closed up +1.53%.
Interest Rates
December 10-year T-notes (ZNZ5) today are up +5 ticks, and the 10-year T-note yield is down -2.9 bp to 4.188%.
Dec T-notes climbed to a 4.75-month high today, and the 10-year T-note yields fell to a 4-week low of 4.168%. Signs of a slowdown in the US labor market are bullish for T-notes after today’s weaker-than-expected ADP employment report and the rise in weekly initial unemployment claims to a 10-week high. The labor market weakness has boosted the chances of a Fed rate cut at the September 16-17 FOMC meeting to 99%, according to the swaps market. Also, today’s upward revision to Q2 nonfarm productivity and downward revision to Q2 unit labor cost are supportive for T-note prices. In addition, T-notes garnered support from today’s 1% fall in WTI crude prices to a 2-week low, which reduced inflation expectations as the 10-year breakeven inflation rate fell to a 1.5-week low of 2.395%.
European government bond yields today are moving lower. The 10-year German bund yield is down -2.5 bp to 2.716%. 10-year UK gilt yield is down -2.8 bp to 4.720%.
Eurozone July retail sales fell -0.5% m/m, weaker than expectations of -0.3% m/m and the biggest decline in 13 months.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Homebuilders are climbing today after the 10-year T-note yield fell to a 4-month low, a bullish factor for housing demand. PulteGroup (PHM), Lennar (LEN), DR Horton (DHI), and Toll Brothers (TOL) are up more than +1%.
T. Rowe Price Group (TROW) is up more than +10% to lead gainers in the S&P 500 after Goldman Sachs said it will invest as much as $1 billion in the company and team up with the asset manager to sell private-market products to retail investors.
American Eagle Outfitters (AEO) is up more than +31% after reporting Q2 net revenue of $1.28 billion, better than the consensus of $1.23 billion.
Ciena (CIEN) is up more than +26% after reporting Q3 adjusted EPS of 67 cents, stronger than the consensus of 53 cents.
Credo Technology Group (CRDO) is up more than +10% after reporting Q1 adjusted EPS of 52 cents, well above the consensus of 35 cents.
Brinker International (EAT) is up more than +5% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Genuine Parts (GPC) is up more than +1% after appointing two new directors to its board in cooperation with Elliott Investment Management.
Copart (CPRT) closed up more than +1% after HSBC upgraded the stock to buy from hold with a price target of $62.
Salesforce (CRM) is down more than -7% to lead losers in the S&P 500 and Dow Jones Industrials after forecasting Q3 revenue of $10.24 billion to $10.29 billion, the midpoint below the consensus of $10.29 billion.
Science Applications International (SAIC) is down more than -5% after reporting Q2 revenue of $1.77 billion, weaker than the consensus of $1.86 billion, and cutting its 2026 revenue forecast to $7.25 billion-$7.33 billion from a previous forecast of $7.60 billion-$7.75 billion, well below the consensus of $7.63 billion.
Texas Instruments (TXN) is down more than -5% to lead losers in the Nasdaq 100 and weigh on chip makers after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped. Also, NXP Semiconductors NV (NXPI) and Advanced Micro Devices (AMD) are down more than -2%. In addition, GlobalFoundries (GFS), Analog Devices (ADI), Microchip Technology (MCHP), and Qualcomm (QCOM) are down more than -1%.
Caleres (CAL) is down more than -10% after reporting Q2 gross margin of 43.4%, below the consensus of 44.6%.
Gitlab Inc (GTLB) is down more than -7% after forecasting 2026 revenue of $936 million to $942 million, the midpoint below the consensus of $940 million.
Old Dominion Freight Line (ODFL) is down more than -3% after reporting less-than-truckload (LTL) tons per day for Aug fell -9.2% y/y.
Earnings Reports(9/4/2025)
Broadcom Inc (AVGO), Ciena Corp (CIEN), Copart Inc (CPRT), Docusign Inc (DOCU), Guidewire Software Inc (GWRE), Lululemon Athletica Inc (LULU), Samsara Inc (IOT), Science Applications International (SAIC), Toro Co/The (TTC), UiPath Inc (PATH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Gain and Bond Yields Fall as US Labor Market Cools

Key Points
American Eagle beat estimates on the top and bottom lines, helped by share buybacks.
The company is seeing traction from ad campaigns with Travis Kelce and Sydney Sweeney.
It expects positive same-store-sales growth in the second half of the year.
Shares of American Eagle Outfitters (NYSE: AEO) were climbing up the charts today as the teen-focused apparel retailer posted better-than-expected results in its second-quarter earnings report, fueled by recent marketing campaigns with Sydney Sweeney and Travis Kelce.
After a weak first half, its guidance also called for the business to return to growth in the second half of the year.
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As of 9:50 a.m. ET, the stock was up 28.4% on the news.
American Eagle takes flight
Overall comparable sales in the quarter were down 1% with 3% growth in Aerie and a 3% decline in American Eagle.
Revenue fell 1% to $1.28 billion, topping estimates at $1.24 billion. Gross margin inched up from 38.6% to 38.9%, and earnings per share rose 15%, benefiting from aggressive share buybacks, to $0.45, well ahead of the consensus at $0.20, as shares outstanding fell by 13%.
CEO Jay Schottenstein said, "We were pleased to see an improvement in the business during the second quarter driven by higher demand, lower promotions, and well-managed expenses, all of which exceeded our expectations."
What's next for American Eagle
While the second-quarter results clearly pleased the market, the real surprise seemed to be the company's outlook.
Management guided for comparable sales to increase in low single digits for both the third and fourth quarters as Schottenstein said: "The fall season is off to a positive start. Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement, and comparable sales."
If those campaigns continue their momentum, the company could top its guidance in the second half of the year.
Teen apparel retail stocks have been notoriously volatile, but things seem to be clicking for American Eagle right now, and its share buybacks look poised to pay off.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why American Eagle Outfitters Stock Was Soaring Today

Key Points
American Eagle Outfitters reported EPS of $0.45 for fiscal Q2 2025, up 15% year over year.
Revenue of $1.28 billion declined less than expected as Aerie comparable sales grew 3%, offsetting core brand softness.
Operating income and margin both improved year over year, driven by lower promotions and expense control despite ongoing tariff headwinds.
American Eagle Outfitters (NYSE:AEO), the apparel retailer known for its American Eagle and Aerie brands, reported second-quarter fiscal 2025 results on Sept. 3, 2025. The most important news in this release was an improvement in both earnings and margins, with the company delivering earnings per share of $0.45. Operating income reached $103 million, well above the operating income guidance of $40 million–$45 million issued after the prior quarter’s weak performance. While Q2 revenue of $1.28 billion slipped 1% from last year, it beat earlier company guidance of a 5% revenue decline.
Overall, the quarter marked a rebound in profitability, though total sales (GAAP) remained slightly below prior year levels amid ongoing challenges for the core American Eagle brand.
Metric
Q2 FY2025
Q2 FY2024
Y/Y Change
EPS
$0.45
$0.39
15.4%
Revenue
$1,284 million
$1,291 million
(0.6%)
Operating margin
8.0%
7.8%
0.2 pp
Gross margin
38.9%
38.6%
0.3 pp
Merchandise inventory
$718 million
$664 million
8.1%
Cash and cash equivalents
$127 million
$192 million
(33.8%)
Source: American Eagle Outfitters. Note: Fiscal 2025's second quarter ended Aug. 2, 2025. Fiscal 2024's Q2 ended July 29, 2024.
Company overview and key success factors
American Eagle Outfitters operates as a specialty retailer focused on casual wear for teens and young adults. Its two main product families are the American Eagle brand—offering jeans and apparel—and Aerie, which features intimates, activewear, apparel, and swim collections. The company’s footprint includes 1,185 consolidated stores and a growing international presence through franchise partners.
Recent strategy has centered on brand differentiation, supply chain efficiency, and investments in digital capabilities. Critical to its business are the strength of the Aerie brand, sustainability initiatives through the Real Good product line, and managing operational efficiency amid changing retail trends. Digital integration and inclusivity policies also support its position in a highly competitive sector.
Quarterly performance and developments
Management reported, “an improvement in the business driven by higher demand, lower promotions, and well-managed expenses, all of which exceeded our expectations.” Diluted EPS (GAAP) rose to $0.45, comfortably outpacing both last year’s figure and analyst forecasts, while operating income (GAAP) reached $103 million, more than double the company’s May guidance.
Gross margin, a key indicator of merchandising and inventory management health, expanded to 38.9%. This was helped by a reduction in promotional activity and improved merchandise margins, despite overall revenue (GAAP) remaining just below the year-ago period. The company’s operating margin also edged up, indicating improved expense control. The Aerie business stood out, delivering a 3.2% increase in net revenue (GAAP) compared to fiscal Q2 2024 and 3% comparable sales growth. In contrast, the American Eagle brand saw net revenue decline 3.3% on a GAAP basis and a 3% drop in comparable sales, offsetting softness in the core brand.
The period also highlighted the benefits of focused marketing, with campaigns featuring celebrities like Sydney Sweeney and Travis Kelce credited for higher customer engagement. Inventory management remained disciplined, with units up only 3%, though inventory costs climbed 8% due to tariff impacts.
The balance sheet reflects some shifts in financial health. Cash and equivalents (GAAP) dropped by nearly $65 million from fiscal Q2 2024, now at $127 million, while long-term debt rose from zero last year to $203 million. The company completed $200 million in accelerated share repurchases, reducing its diluted share count by about 10%. A regular quarterly dividend of $0.125 per share was paid, consistent with prior periods.
Looking ahead: Guidance and investor watch points
Management projected full-year operating income (non-GAAP) in the range of $255 million to $265 million and comparable sales approximately flat. Gross margin is expected to decline year over year, reflecting ongoing input cost pressures—mainly from tariffs. Capital expenditures are forecast to total about $275 million.
Investors should monitor the performance of the Aerie brand relative to core American Eagle. The rising debt level and cash outflows, especially with ongoing buybacks and dividends, also warrant ongoing attention. The quarterly dividend was maintained at $0.125 per share.
Note: Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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American Eagle EPS Jumps 15%

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Eagle Outfitters, Inc. (Symbol: AEO), where a total volume of 70,749 contracts has been traded thus far today, a contract volume which is representative of approximately 7.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 54.8% of AEO's average daily trading volume over the past month, of 12.9 million shares. Particularly high volume was seen for the $19 strike call option expiring February 20, 2026, with 6,913 contracts trading so far today, representing approximately 691,300 underlying shares of AEO. Below is a chart showing AEO's trailing twelve month trading history, with the $19 strike highlighted in orange:
JPMorgan Chase & Co (Symbol: JPM) options are showing a volume of 37,128 contracts thus far today. That number of contracts represents approximately 3.7 million underlying shares, working out to a sizeable 54% of JPM's average daily trading volume over the past month, of 6.9 million shares. Particularly high volume was seen for the $290 strike call option expiring November 21, 2025, with 2,414 contracts trading so far today, representing approximately 241,400 underlying shares of JPM. Below is a chart showing JPM's trailing twelve month trading history, with the $290 strike highlighted in orange:
And Starbucks Corp. (Symbol: SBUX) options are showing a volume of 42,557 contracts thus far today. That number of contracts represents approximately 4.3 million underlying shares, working out to a sizeable 52.4% of SBUX's average daily trading volume over the past month, of 8.1 million shares. Especially high volume was seen for the $87 strike call option expiring September 05, 2025, with 3,354 contracts trading so far today, representing approximately 335,400 underlying shares of SBUX. Below is a chart showing SBUX's trailing twelve month trading history, with the $87 strike highlighted in orange:
For the various different available expirations for AEO options, JPM options, or SBUX options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Wednesday Option Activity: AEO, JPM, SBUX

The following companies are expected to report earnings after hours on 09/03/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Salesforce, Inc. (CRM)is reporting for the quarter ending July 31, 2025. The computer software company's consensus earnings per share forecast from the 16 analysts that follow the stock is $2.12. This value represents a 10.42% increase compared to the same quarter last year. In the past year CRM has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 3.74%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CRM is 29.61 vs. an industry ratio of 22.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Hewlett Packard Enterprise Company (HPE)is reporting for the quarter ending July 31, 2025. The computer company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.36. This value represents a 20.00% decrease compared to the same quarter last year. HPE missed the consensus earnings per share in the 1st calendar quarter of 2025 by -11.36%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for HPE is 14.63 vs. an industry ratio of 25.90.
Credo Technology Group Holding Ltd (CRDO)is reporting for the quarter ending July 31, 2025. The electric company company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.27. This value represents a 550.00% increase compared to the same quarter last year. CRDO missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -100%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CRDO is 108.06 vs. an industry ratio of 62.30, implying that they will have a higher earnings growth than their competitors in the same industry.
The Descartes Systems Group Inc. (DSGX)is reporting for the quarter ending July 31, 2025. The computer software company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.49. This value represents a 22.50% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for DSGX is 50.72 vs. an industry ratio of 22.40, implying that they will have a higher earnings growth than their competitors in the same industry.
GitLab Inc. (GTLB)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 8 analysts that follow the stock is $-0.09. This value represents a 12.50% decrease compared to the same quarter last year. GTLB missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -75%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for GTLB is -164.45 vs. an industry ratio of 40.50.
American Eagle Outfitters, Inc. (AEO)is reporting for the quarter ending July 31, 2025. The retail (shoe) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.20. This value represents a 48.72% decrease compared to the same quarter last year. AEO missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -16%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AEO is 16.89 vs. an industry ratio of 21.50.
C3.ai, Inc. (AI)is reporting for the quarter ending July 31, 2025. The information technology services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.81. This value represents a 62.00% decrease compared to the same quarter last year. In the past year AI has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 11.94%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AI is -5.57 vs. an industry ratio of 15.20.
Asana, Inc. (ASAN)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.17. This value represents a 45.16% increase compared to the same quarter last year. ASAN missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -6.9%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ASAN is -21.42 vs. an industry ratio of 40.50.
PagerDuty, Inc. (PD)is reporting for the quarter ending July 31, 2025. The internet software company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.02. This value represents a 66.67% increase compared to the same quarter last year. In the past year PD has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 100%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PD is 161.20 vs. an industry ratio of 40.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Methode Electronics, Inc. (MEI)is reporting for the quarter ending July 31, 2025. The electrical connectors company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.40. This value represents a 29.03% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for MEI is -9.37 vs. an industry ratio of 13.40.
ChargePoint Holdings, Inc. (CHPT)is reporting for the quarter ending July 31, 2025. The auto (truck) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-1.95. This value represents a 35.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CHPT is -1.41 vs. an industry ratio of 14.80.
Tilly's, Inc. (TLYS)is reporting for the quarter ending July 31, 2025. The retail (shoe) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.04. This value represents a 0.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for TLYS is -1.21 vs. an industry ratio of 21.50.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After-Hours Earnings Report for September 3, 2025 : CRM, HPE, CRDO, DSGX, GTLB, AEO, AI, ASAN, PD, MEI, CHPT, TLYS

Dollar Tree, Inc. DLTR is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 results on Sept. 3, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $4.5 billion, indicating a drop of 39.6% from the prior-year quarter’s figure.
The consensus estimate for earnings is pegged at 38 cents per share, indicating a decrease of 43.3% from the year-ago period’s figure. The consensus mark has increased 2 cents in the past 30 days.
DLTR has a trailing four-quarter negative earnings surprise of 6.9%, on average. In the last reported quarter, the Chesapeake, VA-based company’s earnings surpassed the Zacks Consensus Estimate by 5.9%.
Trends to Watch Before Dollar Tree’s Q2 Release
Dollar Tree’s second-quarter fiscal 2025 is likely to be weighed down by near-term challenges despite a strong start to the year. The company expects continued pressure on discretionary demand in the quarter under discussion as the quarter traditionally lacks major seasonal sales drivers compared with the second halves of the year. Adverse foreign currency translations also continue to act as deterrents.
To mitigate these impacts, Dollar Tree is actively deploying its five levers of cost management, including supplier negotiations, product re-specifications, shifting sourcing to alternative countries, eliminating uneconomical items and leveraging its multi-price strategy. While these measures should offset much of the tariff impact over time, transitional inefficiencies and the lag in execution are likely to weigh on the fiscal second-quarter results.
Additionally, the company anticipates higher selling, general and administrative (SG&A) expenses in the quarter due to incremental labor and store investments aimed at supporting stronger execution and future growth. These combined headwinds, softer discretionary demand, tariff-driven cost pressures and elevated SG&A expenses are expected to result in a sharp year-over-year decline in earnings for the to-be-reported quarter.
On the last reported quarter’searnings call management expected comparable net sales growth toward the higher end of its full-year outlook of 3-5%. DLTR envisions second-quarter adjusted EPS from continuing operations to decline 45-50% year over year, before accelerating again in the third and fourth quarters to achieve the fiscal 2025 earnings outlook.
On the positive front, Dollar Tree is expected to have displayed continued progress on its expansion initiatives, marked by steady store openings and investments in distribution centers, which likely supported revenue momentum. The pending sale of Family Dollar also positions the company to sharpen its operational focus and improve cash flow, further strengthening its growth trajectory.
Dollar Tree’s Zacks Model Findings
Our proven model conclusively predicts an earnings beat for Dollar Tree this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Dollar Tree has an Earnings ESP of +7.90% and currently carries a Zacks Rank of 3.
DLTR’s Stock Price & Valuation Picture
From a valuation perspective, Dollar Tree shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 18.31X, above the five-year median of 17.76X and below the Retail-Discount Stores industry’s average of 31.77X, the company’s shares offer compelling value for investors seeking exposure to the sector.
Image Source: Zacks Investment Research
Recent market movements show that Dollar Tree’s shares have gained 19.7% in the past three months against the industry’s 3.7% decline.
Image Source: Zacks Investment Research
Other Stocks With the Favorable Combination
American Eagle Outfitters AEO currently has an Earnings ESP of +7.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS is pegged at 20 cents, which implies a 48.7% plunge year over year. The consensus mark has increased a penny in the past 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for AEO’s quarterly revenues is pegged at $1.23 billion, which indicates a drop of 4.5% from the figure reported in the prior-year quarter. AEO delivered a negative trailing four-quarter earnings surprise of 0.3%, on average.
The Kroger Co. KR currently has an Earnings ESP of +0.29% and a Zacks Rank of 3. KR’s top line is anticipated to advance year over year when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $34.12 billion, which indicates a 0.6% rise from the figure reported in the year-ago quarter.
The company is expected to register an increase in the bottom line. The consensus estimate for Kroger’s second-quarter earnings is pegged at $1.00 per share, up 7.5% from the year-ago quarter. KR delivered a trailing four-quarter earnings surprise of 3.5%, on average.
Torrid Holdings CURV presently has an Earnings ESP of +71.43% and a Zacks Rank of 2. The company is likely to register a decline in both top and bottom lines when it reports second-quarter fiscal 2025 results. The consensus mark for CURV’s quarterly revenues is pegged at $259.6 million, which indicates an 8.8% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 3 cents, which indicates a decrease of 50% from the year-ago quarter’s actual. CURV has a negative trailing four-quarter earnings surprise of 10.5%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dollar Tree to Report Q2 Earnings: What Surprise Awaits Investors?

American Eagle Outfitters, Inc. AEO is scheduled to report second-quarter fiscal 2025 results on Sept. 3, after the opening bell.
The Zacks Consensus Estimate for AEO’s fiscal second-quarter revenues is pegged at $1.2 billion, suggesting a 4.5% decline from the year-ago quarter. For fiscal second-quarter earnings, the consensus mark is pegged at 20 cents per share, implying a 48.7% decline from earnings of 39 cents reported in the year-ago quarter. The consensus mark has increased by a penny in the past 30 days.
In the last reported quarter, American Eagle's earnings missed the consensus estimate by 16%. Moreover, the company has delivered a negative earnings surprise of 0.3%, on average, in the trailing four quarters.
Earnings Whispers for AEO Stock
Our proven model conclusively predicts an earnings beat for American Eagle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
American Eagle has an Earnings ESP of +7.69% and carries a Zacks Rank of 3 at present.
Things to Know About AEO’s Upcoming Results
American Eagle’s second-quarter fiscal 2025 results are likely to be negatively impacted by persistent macroeconomic pressures that are weighing on consumer discretionary spending. Elevated household debt, inflationary headwinds and ongoing uncertainty around employment are dampening consumer confidence, particularly among its core demographic of younger, price-sensitive shoppers. As a result, spending on non-essential categories like apparel is expected to remain subdued, affecting both traffic and conversion in stores and online.
Merchandising missteps remain one of the biggest hurdles. At Aerie, categories like lace tops and shorts failed to resonate with customers, while at American Eagle, out-of-stocks in core denim and weakness in men’s pants and shorts constrained growth. Although certain categories, such as women’s denim and fleece, performed well, overall product performance was uneven, forcing the company to rely more heavily on markdowns that further hurt profitability.
Another significant challenge lies in margin pressure. Beyond the inventory write-down, higher product costs, increased freight expenses and elevated promotional activity weighed on profitability. Tariffs also remain a looming headwind, with management estimating about $40 million in costs this year, a portion of which will impact the fiscal second quarter. While some mitigation is underway, continued pricing pressure and the need to clear seasonal goods suggest margin recovery may take time.
On the last reported quarter’searnings call management expected the top-line trend in the fiscal second quarter to be similar to the first quarter. For the second quarter of fiscal 2025, the company expects revenues to decline 5% and comps to decrease 3%. Gross margin is projected to be down year over year, thanks to an increase in in-season markdowns and a deleveraged BOW cost on lower comps. Operating income is anticipated to be $40-$45 million for the said quarter.
Despite these challenges, AEO has taken corrective actions that could strengthen performance in the back half of the year. Inventory levels are better aligned with current demand, assortments are being refined to emphasize proven categories like denim, intimates and activewear, and sourcing diversification should ease tariff exposure. Marketing investments are being ramped up ahead of back-to-school, and capital spending is being paced more carefully to preserve cash while still supporting growth. These steps position AEO to stabilize results and rebuild momentum heading into the fall and holiday seasons.
AEO’s Valuation Picture
From a valuation perspective, American Eagle’s shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 12.58X, below the Retail-Apparel & Shoes industry’s average of 18.67X, the stock offers compelling value for investors seeking exposure to the sector.
AEO Stock's Valuation
Image Source: Zacks Investment Research
The recent market movements show that American Eagle’s shares have gained 5.3% in the past six months compared with the industry's growth of 5.6%.
AEO Stock's Price Performance
Image Source: Zacks Investment Research
Other Stocks With the Favorable Combination
Dollar Tree Inc. DLTR currently has an Earnings ESP of +7.90% and a Zacks Rank of 3. The company is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 results. The consensus mark for DLTR’s quarterly revenues is pegged at $4.5 billion, which indicates a plunge of 39.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dollar Tree’s earnings has moved up by a penny in the past seven days to 37 cents per share. The consensus estimate indicates a drop of 43.3% from the year-ago quarter’s actual. DLTR delivered a negative trailing four-quarter earnings surprise of 6.9%, on average.
The Kroger Co. KR currently has an Earnings ESP of +0.29% and a Zacks Rank of 3. KR’s top line is anticipated to advance year over year when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $34.12 billion, which indicates a 0.6% rise from the figure reported in the year-ago quarter.
The company is expected to register an increase in the bottom line. The consensus estimate for Kroger’s second-quarter earnings is pegged at $1.00 per share, up 7.5% from the year-ago quarter. KR delivered a trailing four-quarter earnings surprise of 3.5%, on average.
Torrid Holdings CURV presently has an Earnings ESP of +71.43% and a Zacks Rank of 2. The company is likely to register a decline in both top and bottom lines when it reports second-quarter fiscal 2025 results. The consensus mark for CURV’s quarterly revenues is pegged at $259.6 million, which indicates an 8.8% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 3 cents, which indicates a decrease of 50% from the year-ago quarter’s actual. CURV has a negative trailing four-quarter earnings surprise of 10.5%, on average.
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Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.