An American Eagle advertisement featuring actress Sydney Sweeney on a billboard in Times Square in New York, US, on Thursday, Aug. 7, 2025.
Michael Nagle | Bloomberg | Getty Images
American Eagle issued bullish holiday guidance and raised its full-year forecast on Tuesday after posting better-than-expected quarterly results.
The apparel company is expecting fiscal fourth quarter comparable sales to grow between 8% and 9% – about four times better than the 2.1% analysts had anticipated, according to StreetAccount.
American Eagle is now expecting its full year adjusted operating income to be between $303 million and $308 million – up from its previous range of $255 million to $265 million.
American Eagle shares rose as much as 15% in extended trading.
The company beat third-quarter expectations on the top and bottom lines.
Here’s how American Eagle did during the quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:
- Earnings per share: 53 cents vs. 44 cents expected
- Revenue: $1.36 billion vs. $1.32 billion expected
The company’s reported net income for the three-month period that ended Nov. 1 was $91.34 million, or 53 cents per share, compared with $80.02 million, or 41 cents per share, a year earlier.
Sales rose to $1.36 billion, up about 6% from $1.29 billion a year earlier.
The results are the first time investors are seeing a full quarter of impact from American Eagle’s splashy campaigns with Sydney Sweeney and Travis Kelce.
Companywide, American Eagle saw comparable sales grow 4%, better than the 2.7% analysts had expected, according to StreetAccount. While the business’s overall results topped expectations, they were primarily driven by Aerie, which saw comparable sales rise 11% and revenue jump about 13%.
At American Eagle, where the campaigns were focused, comparable sales grew just 1%, worse than the 2.1% analysts had expected, according to StreetAccount.
The company told CNBC the campaigns are “attracting more customers” and creating more attention around the brand, but the results show they have not yet been a major revenue driver.
However, they’re not having a major impact on profits, either. During the quarter, American Eagle’s operating margin was 8.3%, better than the 7.5% analysts had expected, according to StreetAccount.
Beyond its marketing campaigns, American Eagle told CNBC it saw record revenue in its third quarter and that “strong momentum” carried into the current quarter, where it saw a “record breaking Thanksgiving weekend.”
The rosy holiday commentary comes after peers like Abercrombie & Fitch, Gap and Urban Outfitters posted better than feared results ahead of the crucial holiday shopping season. Investors have been watching discretionary retailers closely to look for slides in consumer demand because of tariffs, but many have proven resilient so far. They’re showing that for now, higher prices aren’t stopping consumers from shopping, as long as they feel like they’re getting good value for their money.
Industrywide holiday outlooks from outside consulting firms have been relatively murky, but the latest slate of earnings from discretionary retailers have been a positive omen for holiday sales. Plus, turnout during the so-called Turkey 5 shopping weekend, the five day stretch between Thanksgiving and Cyber Monday, was stronger than expected, according to the National Retail Federation.
Source: https://www.cnbc.com/2025/12/02/american-eagle-aeo-earnings-q3-2025.html
