AEO ▼ -11.9% - American Eagle Outfitters, Inc. $AEO Q2 REVENUE $1.380B, UP 8%, WITH COMPS UP 6% - Revenue: $1.380375B vs $1.372B est, beat, +8% year-over-year - Diluted EPS: $0.79, from $0.45 - Comparable sales: +6% total, Aerie +19%, American Eagle -1% - Gross profit: $672M, +34%, margin 48.7%, up 980bps - Operating income: $211M, from $103M, margin 15.3% from 8.0% - Net income: $133.685M The quarter includes a $179M net gross profit benefit from tariff refunds, which drove 1,300bps of the gross margin expansion, and a $161M net operating income benefit, worth 1,170bps of operating margin. The company received $196M in IEEPA tariff refunds including interest, and says it has received substantially all refunds for which it submitted claims. Merchandise margins fell 330bps. Q3 guidance: - Comparable sales: mid-to-high single digits - Operating income: $110-115M FY2026 guidance: - Comparable sales: mid single digits - Operating income: $540-550M American Eagle reported a 8% revenue beat and strong earnings growth in Q2, but the stock declined 11.9% as investors recognized that much of the improvement was driven by a one-time $179 million tariff refund that inflated gross margins by 1,300 basis points and won't recur. While the core business showed promise with Aerie comps up 19%, the company's merchandise margins actually fell 330 basis points, and forward guidance for Q3 and FY2026 suggests a significant deceleration in comp sales growth and operating income that reflects the absence of tariff benefits going forward. 09-SEP-2026 04:08 PM ET