American Eagle Outfitters is flying high. Q2 2025 results are in. Operating income up 2% YoY to $103 million. Diluted EPS jumped 15% YoY. Pretty impressive.

Sydney Sweeney and Travis Kelce? Marketing gold. Over 700,000 new customers. Denim's selling out fast.

Tariffs? They've got it covered. Exposure down from $180 million to $70 million. Smart move. Shifting away from China. CFO Mike Mathias is pulling some strings. Cost negotiations, freight optimization, strategic pricing. It's a whole thing.

Aerie's back in the game. 3% comp growth in Q2. Parisian romance capsule was a hit. Fall's looking good. Intimates are booming. New fits, new fabrics. Customers are loving it.

Q3's off to a solid start. Mid-single digit comp sales growth. They're aiming for $95-100 million in operating income. Extra $20 million in tariffs? No sweat. Q4 looks promising too. $125-130 million target. Absorbing up to $50 million in tariffs. Bold move.

Store strategy's evolving. Closing 35-40 spots. Opening 30 new Aerie/offline stores. Capital expenditures steady at $275 million.

It seems AEO's got a plan. Not entirely clear if it'll all pan out, but they're certainly not holding back. Kind of surprising how confident they are with all these tariffs flying around. We'll see how it goes.