American Eagle takes flight after crushing Q2 results and reinstating full-year guidance

American Eagle shares soared 24% in after-hours trading Wednesday after the teen apparel retailer posted blowout Q2 earnings results and reinstated its full-year guidance.

The retailer delivered earnings per share of $0.45, more than double Wall Street’s estimate of $0.20. Revenue landed at $1.28 billion, also topping expectations of $1.24 billion.

American Eagle had pulled forecasts back in May, but now expects full-year same-store sales to be flat. The company also anticipates lower operating income due to tariffs.

In the press release, management called its recent high-profile celebrity campaigns successful:

“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.” 

Same-store sales fell 1%. Comps for American Eagle’s namesake brand fell 3%, while its popular Aerie intimates line rose 3%, continuing recent trends.

Shares of American Eagle were down 20% year to date prior to the earnings call.