Today, American Eagle’s shares jumped 13% in pre-market trading after the retailer issued optimistic holiday guidance and upgraded its full-year outlook, buoyed by stronger-than-expected quarterly results.
In its latest earnings report, AEO announced that its total revenue increased 6 percent in the third quarter to a record $1.36 billion, fueled by a 4 percent rise in comparable sales.
Comparable sales for the Aerie brand increased by 11 percent. For the American Eagle brand, comparable sales went up by 1 percent.
Net income increased 6.7 percent to $91.34 million, compared to $80 million in the same period last year.
Moving forward, American Eagle forecasts fiscal Q4 comparable sales to increase by 8% to 9%, raising its fourth-quarter operating income guidance to $155 million to $160 million based on comp sales growth of 8 to 9 percent.
Jay Schottenstein, Executive Chairman of the Board and Chief Executive Officer, told investors, “I’m extremely pleased with the significant trend change across our business reflecting decisive steps taken from merchandising to marketing to operations — all having a positive impact. Record third-quarter revenue was highlighted by Aerie’s double-digit comparable sales increase and positive growth at American Eagle, contributing to results that exceeded expectations.”
“Strong momentum has continued into the fourth quarter, including an excellent start to the holiday season. We delivered a record-breaking Thanksgiving weekend, led by an acceleration in demand across brands and channels and underscored by outstanding growth at Aerie and Offline. We are focused on finishing the season strong and sustaining our success into 2026 and beyond.”
Regarding the company’s recent controversial headlines, AEO stated: “AEO sparked controversy last summer with its ad campaign featuring Sydney Sweeney but the campaign proved to be a major hit with consumers, investors and on social media. Last month the brand named Martha Stewart as its newest face.”
By CEO NA Editorial Staff
