American Eagle Outfitters said same-store sales for its fast-growing Aerie brand slowed down from prior quarters.
The apparel company said Wednesday that total company revenue for the second quarter rose 8% to $1.38 billion. Analysts surveyed by FactSet forecast revenue of $1.37 billion.
Second-quarter total same-store sales rose 6%, just behind the 6.7% growth that Wall Street projected. Same-store sales in American Eagle's namesake brand fell 1%, while Aerie's rose 19%. Aerie's same-store sales increased more than 20% during the previous two quarters.
Shares dropped 11% to $15 in after-hours trading.
American Eagle's second-quarter profit was $134.1 million, or 79 cents a share, up from $77.6 million, or 45 cents a share, a year earlier. Analysts anticipated 22 cents a share.
The company received $196 million in tariff refunds, which benefited second-quarter results and are included in its new guidance.
American Eagle now expects operating income for 2026 to be $540 million to $550 million, up from a previous range of $390 million to $410 million.
In the current third quarter, the retailer expects same-store sales will increase by a mid-to-high single digit percentage. Analysts were forecasting a 3.7% increase.