Prime Highlights:
- American Eagle beat Wall Street expectations in its third quarter, with revenue of $1.36 billion and earnings of 53 cents per share.
- The company raised its full-year forecast and expects holiday-quarter sales to grow 8–9%, signaling strong momentum for the season.
Key Facts:
- Aerie drove growth, posting 11% comparable sales increase and 13% revenue growth.
- Overall operating margin reached 8.3%, higher than expected, reflecting healthy profitability.
Background:
American Eagle Outfitters did well in its latest quarter, and its stock rose up to 15% in after-hours trading on Tuesday. The apparel retailer not only surpassed Wall Street’s expectations but also raised its full-year forecast, signaling a confident outlook heading into the holiday season.
During its fiscal third quarter, the company posted revenue of $1.36 billion, ahead of analysts’ estimates of $1.32 billion. Earnings came in at 53 cents per share, topping the expected 44 cents. Net income rose to $91.34 million, up from $80.02 million a year earlier.
American Eagle now expects comparable sales to climb between 8% and 9% during the holiday quarter, a sharp improvement over the 2.1% growth analysts had predicted. Full-year adjusted operating income is now projected between $303 million and $308 million, significantly higher than its earlier range.
The quarter also reflected the first full impact of the brand’s high-profile marketing partnerships with actress Sydney Sweeney and NFL star Travis Kelce. While these campaigns have boosted brand visibility, growth at the core American Eagle banner remained modest, with comparable sales rising just 1%. Aerie did well, with sales up 11% and revenue up 13%.
American Eagle made good profits, with an 8.3% operating margin, higher than expected. The company also had record third-quarter revenue and strong sales over the Thanksgiving weekend.
American Eagle’s positive results follow similar strong performances from other apparel brands, showing that shoppers are still spending as the holiday season approaches.
