49 minutes ago
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.
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 expectedRevenue: $1.36 billion vs. $1.32 billion expectedThe 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.
