An American Eagle commercial that includes actress Sydney Sweeney on a billboard in Instances Sq. in New York, US, on Thursday, Aug. 7, 2025.
Michael Nagle | Bloomberg | Getty Photos
American Eagle issued bullish vacation steerage and raised its full-year forecast on Tuesday after posting better-than-expected quarterly outcomes.
The attire firm is anticipating fiscal fourth quarter comparable gross sales to develop between 8% and 9% – about 4 occasions higher than the two.1% analysts had anticipated, based on StreetAccount.
American Eagle is now anticipating its full yr adjusted working earnings to be between $303 million and $308 million – up from its earlier vary of $255 million to $265 million.
American Eagle shares rose as a lot as 15% in prolonged buying and selling.
The corporate beat third-quarter expectations on the highest and backside traces.
This is how American Eagle did through the quarter in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG:
- Earnings per share: 53 cents vs. 44 cents anticipated
- Income: $1.36 billion vs. $1.32 billion anticipated
The corporate’s reported web earnings for the three-month interval that ended Nov. 1 was $91.34 million, or 53 cents per share, in contrast with $80.02 million, or 41 cents per share, a yr earlier.
Gross sales rose to $1.36 billion, up about 6% from $1.29 billion a yr earlier.
The outcomes are the primary time traders are seeing a full quarter of impression from American Eagle’s splashy campaigns with Sydney Sweeney and Travis Kelce.
Companywide, American Eagle noticed comparable gross sales develop 4%, higher than the two.7% analysts had anticipated, based on StreetAccount. Whereas the enterprise’s total outcomes topped expectations, they have been primarily pushed by Aerie, which noticed comparable gross sales rise 11% and income leap about 13%.
At American Eagle, the place the campaigns have been targeted, comparable gross sales grew simply 1%, worse than the two.1% analysts had anticipated, based on StreetAccount.
The corporate instructed CNBC the campaigns are “attracting extra prospects” and creating extra consideration across the model, however the outcomes present they haven’t but been a serious income driver.
Nonetheless, they don’t seem to be having a serious impression on earnings, both. Throughout the quarter, American Eagle’s working margin was 8.3%, higher than the 7.5% analysts had anticipated, based on StreetAccount.
Past its advertising campaigns, American Eagle instructed CNBC it noticed file income in its third quarter and that “sturdy momentum” carried into the present quarter, the place it noticed a “file breaking Thanksgiving weekend.”
The rosy vacation commentary comes after friends like Abercrombie & Fitch, Hole and City Outfitters posted higher than feared outcomes forward of the essential vacation procuring season. Buyers have been watching discretionary retailers intently to search for slides in shopper demand due to tariffs, however many have confirmed resilient thus far. They’re exhibiting that for now, greater costs aren’t stopping customers from procuring, so long as they really feel like they’re getting good worth for his or her cash.
Industrywide vacation outlooks from outdoors consulting companies have been comparatively murky, however the newest slate of earnings from discretionary retailers have been a constructive omen for vacation gross sales. Plus, turnout through the so-called Turkey 5 procuring weekend, the 5 day stretch between Thanksgiving and Cyber Monday, was stronger than anticipated, based on the Nationwide Retail Federation.
