American Eagle (AEO) earnings Q3 2025

American Eagle It issued a bullish holiday forecast and raised its full-year forecast after a better-than-expected report on Tuesday. quarterly results.

The apparel company expects comparable sales in the fourth quarter to rise between 8% and 9%, according to StreetAccount; That’s nearly four times better than analysts’ forecast of 2.1%.

American Eagle expects full-year adjusted operating income to be between $303 million and $308 million, down from the previous range of $255 million to $265 million.

American Eagle shares rose as much as 15% in extended trading.

The company beat third-quarter expectations on both the top and bottom lines.

Here’s how American Eagle performed this quarter compared to Wall Street’s expectations, according to a survey of analysts conducted by LSEG:

• Earnings per share: 44 cents expected versus 53 cents.
• Revenues: 1.36 billion dollars, while the expectation was 1.32 billion dollars

The company’s reported net income for the three months ended Nov. 1 was $91.34 million, or 53 cents per share, compared to $80.02 million, or 41 cents per share, a year earlier.

Sales rose nearly 6% to $1.36 billion from $1.29 billion a year earlier.

The results show that for the first time, investors saw a quarterly impact from American Eagle’s eye-catching campaigns with Sydney Sweeney and Travis Kelce.

American Eagle saw companywide comparable sales rise 4%, better than analysts’ expectations of 2.7%, according to StreetAccount. While the overall business results were above expectations, these results were primarily driven by Aerie, where comparable sales increased 11% and revenue increased approximately 13%.

At American Eagle, where the campaigns were concentrated, comparable sales rose just 1%, worse than analysts’ expectations of 2.1%, according to StreetAccount.

The company told CNBC that the campaigns “attracted more customers” and created more buzz around the brand, but the results showed they were not yet a significant source of revenue.

But these do not have a big impact on profits either. According to StreetAccount, American Eagle’s operating margin during the quarter was 8.3%, better than analysts’ expectations of 7.5%.

Beyond its marketing campaigns, American Eagle told CNBC that it generated record revenue in the third quarter and that the “strong momentum” carried over into the current quarter, where it experienced a “record-breaking Thanksgiving weekend.”

Pink holiday comment comes after peers Abercrombie and Fitch, Openness And Urban Outfitters It posted better-than-feared results ahead of the critical holiday shopping season. Investors are watching discretionary retailers closely for declines in consumer demand due to tariffs, but most have proven resilient so far. For now, they show that high prices do not deter consumers from shopping as long as they feel they are getting good value for their money.

Outside consulting firms’ industrywide holiday outlooks were relatively dark, but the latest earnings call from discretionary retailers bodes well for holiday sales. Additionally, participation in the so-called Türkiye 5 shopping weekend, the five-day period between Thanksgiving and Cyber ​​Monday, was stronger than expected, according to the National Retail Federation.