American Eagle Outfitters, Inc. (NYSE:AEO) shares are diving premarket Thursday after the company reported mixed second-quarter results.

The company reported adjusted EPS of 39 cents, beating the analyst consensus of $0.38. 

Revenues rose 8% year-over-year (Y/Y) to $1.29 billion, missing the street view of $1.31 billion. American Eagle Comp sales rose  5%, while Aerie Comp sales increased 9%. 

Store revenue rose 7%, and digital revenue increased 12% in the quarter.

Gross profit rose 10% Y/Y to $499 million, with a gross margin rate of 38.6%, up 90 basis points. This growth was driven by higher merchandise margins due to favorable product costs and expense leverage, particularly in rent and digital delivery costs.

Total ending inventory grew by 4% Y/Y to ...