Revenue during the quarter grew 3.16 percent to $822.59 million from $797.43 million in the previous year period. Gross margin for the quarter expanded 159 basis points over the previous year period to 37.33 percent. Total expenses were 91.65 percent of quarterly revenues, down from 93.34 percent for the same period last year. This has led to an improvement of 168 basis points in operating margin to 8.35 percent.

Operating income for the quarter was $68.66 million, compared with $53.14 million in the previous year period.

Jay Schottenstein, chief executive officer commented, "For the past few years, we have worked hard to lift our brands through merchandise leadership and innovation, strengthen our customer focus and invest in technology. Our efforts around these priorities are clearly paying off, as again evidenced by our strong earnings growth in the second quarter. As we enter the fall season, our execution, focus and market opportunities are greater than ever. In today’s evolving retail landscape, we are committed to offering the very best product and customer experience to position AEO’s brands as leaders in a new generation of successful retail brands."

For the third-quarter 2016, American Eagle Outfitters, Inc. forecasts revenue to grow in the range of percent to percent. The company expects diluted earnings per share to be in the range of $0.40 to $0.41 for the third-quarter.