American Eagle Outfitters lifts full-year outlook after Q3 revenue rise

American Eagle Outfitters (AEO) has raised guidance for the 4th fourth (Q4) of fiscal twelvemonth 2025 (FY25) pursuing better-than-expected Q3 results.

The company’s full nett gross for the 4th ended 1 November 2025 grew 6% twelvemonth implicit twelvemonth (YoY) to $1.36bn.

Total comparable income accrued 4%, with show varying crossed brands.

American Eagle Outfitters operates the American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed brands successful the US, Canada and Mexico.

Aerie posted an 11% summation successful comparable sales, portion comparable income astatine American Eagle were up 1%.

Gross nett grew by 5% to $552m. Gross borderline slipped by 40 ground points to 40.5%, which the institution attributed to a $20m nett tariff interaction and higher markdowns.

These pressures were partially offset by little freight costs and benefits from income leverage. Buying, occupancy and warehousing expenses improved by 20 ground points.

Operating nett reached $113m, compared with $106m successful the aforesaid play past year.

Other income totalled $14m, which included a antecedently disclosed unrealised concern summation of $13m.

Diluted net per stock came successful astatine $0.53, an summation of 29% YoY. Adjusted diluted net per stock roseate 10%, based connected 173 cardinal diluted shares.

Ending inventory stood astatine $891m, up 11%, with units expanding 8%.

Year to date, AEO has completed $231m successful stock repurchases, each executed successful the archetypal fractional of the fiscal year.

In Q3, the institution returned $21m to shareholders done its $0.125 quarterly dividend, bringing full dividend payments truthful acold this twelvemonth to $64m.

Full-year superior expenditure is projected to beryllium astir $275m.

On the backmost of improving income trends, AEO has lifted its Q4 operating income forecast to $155m–$160m, assuming comparable income maturation of 8–9%.

The institution has besides raised its full-year adjusted operating income outlook to $303m–$308m, up from its anterior scope of $255m–$265m.

Despite the improved net guidance, AEO expects gross borderline to diminution YoY successful some Q4 and the afloat fiscal year, citing an anticipated nett tariff interaction of astir $50m successful Q4 and $70m for FY25.

AEO enforcement president of the committee and CEO Jay Schottenstein said: “I americium highly pleased with the important inclination alteration crossed our concern reflecting decisive steps taken from merchandising to selling to operations – each having a affirmative impact.”

"American Eagle Outfitters lifts full-year outlook aft Q3 gross emergence " was primitively created and published by Retail Insight Network, a GlobalData owned brand.

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