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American Eagle Outfitters, Inc. (AEO) reported a 3.2% year-over-year increase in revenues for its Aerie brand during the second quarter of fiscal 2025. AEO’s comparable store sales rose by 3% in the same period, with expectations for a 4.1% increase in sales for the third quarter. The company plans to open about 30 Aerie locations and remodel 40-50 AE stores, while shutting down 35-40 American Eagle locations by the end of the year.
AEO is focusing on improving its digital platform and supply chain, particularly reducing sourcing exposure to China. The forward price-to-earnings ratio for AEO stands at 12.22, compared to the industry average of 17.7. The Zacks Consensus Estimate reveals a 37.4% decline in earnings per share (EPS) for fiscal 2025, but a projected growth of 25.1% in fiscal 2026.
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