Revenue for the American Eagle business declined by 8% to $778m from a year earlier, while its comparable sales also fell by 10% against Q2 2021.
The Aerie business recorded $372m in revenue, up by 11% from last year, but its comparative sales dropped by 6% versus Q2 2021.
AEO’s consolidated store and total digital revenues for Q2 2022 declined by 2% and 6% respectively.
In the three months to 30 July, AEO’s operating income fell significantly from $168m to $14m year-on-year.
The company also witnessed a 26% decrease in gross profit from $502m to $370m against the same period of last year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
During the 26 weeks to 30 July, AEO reported a slight improvement in total revenue to $2.25bn, against $2.22bn a year earlier.
The company expects its gross-margin rate to be in the mid-30s for the third quarter (Q3) and low-30s for the fourth quarter (Q4) of FY22.
AEO executive board chairman and CEO Jay Schottenstein said: “This is an unprecedented time in retail.
“As we cycle exceptional demand from last year, a tougher macro environment is impacting consumer spending behaviour.
“Second-quarter performance reflected these challenges, constraining revenue and amplifying margin pressure as we fully cleared through excess spring and summer goods.
“In a shifting macro environment, we are focused on controlling the controllable.
“We entered the second half with inventory levels in a much better position and an assortment that is current for the fall season.
“Given ongoing external uncertainties, we have taken additional actions to improve financial performance.”
Based in Pittsburgh, Pennsylvania, AEO supplies lifestyle, clothing and accessory products primarily targeted at male and female university and high school students.