American Eagle (AEO) earnings Q3 2025

American Eagle Soars with Bullish Holiday Guidance

American Eagle has issued bullish holiday guidance and raised its full-year forecast after posting better-than-expected quarterly results. The apparel company is expecting fiscal fourth quarter comparable sales to grow between 8% and 9%, significantly outpacing the 2.1% analysts had anticipated. This impressive forecast has sent American Eagle shares rising as much as 15% in extended trading.

The company’s reported net income for the three-month period that ended November 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. These results are a testament to the company’s successful marketing campaigns, including its partnership with actress Sydney Sweeney and NFL player Travis Kelce.

Strong Quarterly Performance

American Eagle beat third-quarter expectations on the top and bottom lines, with earnings per share of 53 cents vs. 44 cents expected, and revenue of $1.36 billion vs. $1.32 billion expected. The company’s operating margin was 8.3%, better than the 7.5% analysts had expected. These strong results were driven primarily by the company’s Aerie brand, which saw comparable sales rise 11% and revenue jump about 13%.

While the American Eagle brand itself saw comparable sales grow just 1%, worse than the 2.1% analysts had expected, the company told CNBC that its marketing campaigns are “attracting more customers” and creating more attention around the brand. Although these campaigns have not yet been a major revenue driver, they have not had a major impact on profits either.

Rosy Holiday Outlook

American Eagle’s 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 due to tariffs, but many have proven resilient so far. The company saw record revenue in its third quarter and a “record breaking Thanksgiving weekend,” indicating strong momentum heading into the holiday season.

Industrywide holiday outlooks from outside consulting firms have been relatively murky, but the latest slate of earnings from discretionary retailers has been a positive omen for holiday sales. The National Retail Federation reported stronger-than-expected turnout during the so-called Turkey 5 shopping weekend, the five-day stretch between Thanksgiving and Cyber Monday. As the holiday season approaches, American Eagle’s bullish guidance and strong quarterly performance position the company for a successful finish to the year.