American Eagle Outfitters, Inc.

today's presentation there will be an opportunity to ask questions to ask a question you may press star then one on your telephone keypad to withdraw your question please press star then two please note this event is being recorded i would now like to turn the conference over to judy mehan head of investor relations and corporate communications please go ahead

Good afternoon, everyone. Joining me today for our prepared remarks are Jay Schottenstein, Executive Chairman and Chief Executive Officer, Jen Foyle, President, Executive Creative Director for American Eagle and Aerie, and Mike Mathias, Chief Financial Officer. Before we begin today's call, I need to remind you that we will make certain forward-looking statements. These statements are based upon information that represents the company's current expectations or beliefs. The results actually realized may differ materially based on risk factors included in our SEC filings. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Additionally, please see the second quarter investor presentation in our corporate website at www.aeo-inc.com in the investor relations section. And now I will turn the call over to Jay.

Thanks, Judy, and good afternoon, everyone. Before we get into the quarterly results, I want to step back and acknowledge the team's hard work and our conviction in our long-term plans. We had a good quarter, but more importantly, we continue to strengthen our brands, improve our runway for growth, and manage the business for higher profitability. The consumer backdrop is dynamic. yet we are focused on controlling all that is within our control, providing a leading customer experience while maintaining cost disciplines. I'm pleased to report on encouraging early results of the actions we are taking to reignite performance. Last quarter, I spoke about a series of actions we were implementing, and I'm pleased that the team has moved with urgency to execute. Product initiatives across brands exciting new marketing campaigns, and greater operational disciplines are all contributing to improved business results. We have a lot of hard work ahead, yet we are excited about the progress so far. Total revenue of $1.28 billion was our second highest ever posted for the second quarter, marking meaningful improvement from the first quarter and validating the actions we have taken. Aerie saw a dramatic turn from the first quarter, delivering comp growth of 3%. American Eagle saw nice improvement in key go-forward categories, as Jen will review shortly. Second quarter traffic was positive across brands and channels, and I was pleased to see traffic momentum build throughout the second quarter, which continued into August. Following the first quarter inventory write-down, the team was focused on successfully managing through the season, delivering better sell-throughs with less promotions. We also managed the business with financial discipline, with SG&A down compared to last year. Operating income improved 2% to $103 million, significantly exceeding our expectations. Diluted EPS increased 15% to last year. It was a solid quarter, and we are encouraged by the progress, yet our work is not complete. We are leaving no stone unturned. We are committed to growing our brands by putting our customers first and improving operational efficiencies. One component of this plan is to create greater efficiencies and speed across our supply chain. With respect to tariffs, we will begin to feel the impact in the second half, as Mike will review. We are using all levers to mitigate tariff increases. Early efforts have been successful. We have taken action to assure manufacturing options are in place in countries that make the most sense for our business moving forward. We have a highly seasoned sourcing team and strong partnerships with vendors. We will leverage these relationships as we navigate through evolving trade dynamics. Turning to capital allocations, we continue to strike the right balance between investments to support our long-term growth agenda, and returning capital to shareholders. Year to date, we have returned $276 million to shareholders through dividends and share repurchases. This includes the completion of our $200 million accelerated repurchase program earlier this year. The fall season is off to a good start, fueled by the strength of our product lines and the success of our recent marketing campaigns. The iconic fall denim campaign with Sydney Sweeney affirms we are the American jeans brand. We saw a record-breaking new customer acquisition and brand awareness, cutting across age, demographics, and genders. The most recent collaboration with True Colors by Travis Kelsey has kept the momentum going. We have seen periods of very strong demand from both campaigns, fueling positive traffic in August. which was up consistently throughout the month. I'll end with our commitment to building on this quarter's progress. We have enduring brands with significant potential for more growth. I am confident we will realize our potential and drive sustainable, profitable growth for the long run and create greater value for our shareholders. Let me turn it over to Jay.