American Eagle sales rise on strong performance by Aerie; raises Q4 outlook
American Eagle Outfitters Inc. sustained its momentum during the third quarter as the company delivered earnings and “record” sales that topped Wall Street expectations.
The apparel retailer also raised its full-year forecast and sounded a confident note about the holiday season, saying its “strong momentum” had continued into the fourth quarter.
High-profile campaigns with actress Sidney Sweeney and NFL star — and Taylor Swift fiancé — Travis Kelce for American Eagle have put a spotlight on the namesake brand. But the company’s “record” third-quarter revenue was mostly fueled by its intimates and loungewear banner, Aerie, whose comparable sales jumped 11%. In contrast, American Eagle comparable sales increased 1%.
The company reported net income of $91.34 million, or $0.53 per share, for the quarter ended Nov. 1, compared with $80.02 million, or $0.41 per share, in the year-ago period. Analysts had expected earnings of $0.44 per share.
Total net revenue increased 6% to $1.36 billion, topping estimates of $1.32 billion. Total comparable sales rose 4%.
“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,” stated Jay Schottenstein, executive chairman and CEO of AEO Inc. “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.”
[READ MORE: American Eagle launches holiday campaign with Martha Stewart]
Schottenstein said the company had a “record-breaking Thanksgiving weekend," led by an acceleration in demand across brands and channels, with outstanding growth at Aerie.
“We are focused on finishing the season strong and sustaining our success into 2026 and beyond,” he said.
Based on its sales trends, the company raised its fourth quarter operating income guidance to $155 to $160 million based on comparable sales in the range of positive 8% to 9% with similar growth for total revenue. American Eagle’s previous fourth quarter guidance was for operating income of $125 to $130 million, based on comparable sales in the positive low single digits.
For the full year, American Eagle rose its operating income guidance to $303 to $308 million, with comparable sales in the low single digits. Prior guidance called for an adjusted operating income of $255 to $265 million on flat comparable sales.
The retailer operated 1,190 stores at the end of the quarter, including 830 American Eagle stores, 329 Aerie stores and 23 Todd Snyder stores.
