American Eagle Outfitters (AEO) surged 10.32% intraday following the release of its third-quarter fiscal 2025 results, which exceeded analyst expectations.
The company reported earnings per share (EPS) of $0.53, beating the consensus estimate of $0.44, and revenue of $1.36 billion, surpassing the $1.32 billion forecast. Comparable sales grew 4%, driven by an 11% increase in Aerie sales. Additionally, American Eagle raised its Q4 operating income guidance to $155-$160 million and its annual comparable sales forecast to low single-digit growth, up from prior flat expectations.
CEO Jay Schottenstein attributed the strong performance to strategic changes in merchandising, marketing, and operations, as well as a record-breaking Thanksgiving weekend. The company's Aerie brand, in particular, showed robust growth across all categories, including intimate apparel and activewear.