Non-GAAP Measures
This presentation includes information on non-GAAP financial measures
("non-GAAP" or "adjusted"), including operating income, net income and net income per diluted share. These financial measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles ("GAAP") and are not necessarily comparable to similar measures presented by other companies. Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Management believes that this non-GAAP information is useful for an alternate presentation of the company's performance, when reviewed in conjunction with the company's GAAP consolidated financial statements and provides a higher degree of transparency. These amounts are not determined in accordance with GAAP and, therefore, should not be used exclusively in evaluating our business and operations.
We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures. The tables included in this presentation reconcile the GAAP financial measures to the
non-GAAP financial measures discussed within for the 26 weeks ended August 2, 2025.
Our outlook also includes operating income presented on an adjusted or
"non-GAAP" basis, which is a non-GAAP financial measure. The company is not able to provide a quantitative reconciliation of forward-looking adjusted operating income to the most directly comparable forward-looking GAAP financial measure because the Company is unable to provide a meaningful or accurate reconciliation or estimation of certain reconciling items without unreasonable effort, due to the inherent difficulty in forecasting and quantifying measures that are necessary for such reconciliation.
"We were pleased to see an improvement in the business during the second quarter driven by higher
demand, lower promotions and well managed expenses, all of which exceeded our expectations. The actions we have taken to better align inventory and strengthen execution laid the groundwork for our results this quarter. Highlighted by Aerie's top-line increase and better sell-throughs overall, we achieved our second highest enterprise revenues ever recorded for the second quarter.
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. We look forward to building on our progress and the continued strength of our iconic brands to drive higher profitability, long-term growth and shareholder value."
Jay Schottenstein
AEO's Executive Chairman of the Board and Chief Executive Officer
Our Core Brands
Seeded from Within, Set Up For Success
Rankings reflect U.S. Market Only; Source: Circana, LLC, Retail Tracking Service, US, Jeans, Wearer Age: 15 - 25; Women's Leggings, Activewear, Sports Bras & Intimates, Wearer Age: 15 - 35; Dollar Share, Aug 2024 -Jul 2025
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