American Eagle Outfitters (NYSE: AEO) surged 11.95% in pre-market trading after reporting better-than-expected third-quarter fiscal 2025 results. The company posted earnings per share (EPS) of $0.53, beating the consensus estimate of $0.44, while revenue rose 6% year-over-year to $1.36 billion, surpassing forecasts. Comparable sales grew 4%, driven by an 11% jump in its Aerie brand sales.
The retailer raised its Q4 operating income guidance to $155-$160 million and upgraded its annual comparable sales forecast to low single-digit growth, up from prior flat expectations. CEO Jay Schottenstein attributed the strong performance to strategic merchandising and marketing changes, as well as a record-breaking Thanksgiving weekend.
Analysts responded positively, with Jefferies, JP Morgan, and Barclays raising their target prices for AEO shares, citing momentum in the Aerie brand and improved profitability outlook.