American Eagle lifts profit guidance

American Eagle Outfitters (AEO) announced that fourth quarter-to-date comparable sales to January 4, 2025, were up in the low single digits, tracking ahead of recent guidance of positive 1 percent.

The company said trends across American Eagle and Aerie were positive.

As a result, American Eagle is raising its fourth quarter outlook, with operating profit expected to be approximately 135 million dollars, up from previous guidance of 125 million dollars to 130 million dollars based on a comparable sales increase of approximately 2 percent, building on 8 percent growth last year.

“As a top destination for holiday shopping, we achieved record sales in December. We came to market with exciting new product assortments and engaging customer experiences, resulting in growth across brands and selling channels,” said Jay Schottenstein, AEO’s executive chairman and CEO in a statement.

However, the company expects the retail calendar will have an adverse impact on total revenue, resulting in total revenue down approximately 5 percent.

“We also remain focused on driving operational efficiencies, putting us on track to deliver high-teens operating profit growth in 2024,” Schottenstein added.