American Eagle Outfitters Q3 revenue beats estimates, driven by Aerie sales growth

American Eagle Outfitters

02/12/2025 21:20

Overview

American Eagle fiscal Q3 revenue grows 6% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q3 increased 29% yr/yr

The specialty retailer raises Q4 operating income guidance to $155-$160 mln

Outlook

American Eagle raises Q4 operating income guidance to $155-$160 mln on 8%-9% comp sales growth

Company increases full-year adjusted operating income guidance to $303-$308 mln

Result Drivers

AERIE SALES GROWTH - Aerie's comparable sales grew 11%, contributing significantly to overall revenue increase

STRATEGIC CHANGES - Co attributes positive revenue growth to strategic changes in merchandising, marketing, and operations

COST MANAGEMENT - Higher markdowns largely offset by positive sales and lower costs, including favorability in freight

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.36 bln
$1.32 bln (10 Analysts)
Q3 EPS
$0.53
Q3 Net Income
$91.34 mln
Q3 Total Comparable Sales Growth
4.00%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

Wall Street's median 12-month price target for American Eagle Outfitters Inc is $17.00, about 25% below its December 1 closing price of $21.25

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw6qfVPQa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)