American Eagle Outfitters announced on January 13, 2025, that it is raising its fourth-quarter operating profit outlook to approximately $135 million, an increase from its previous guidance of $125 million to $130 million. This upward revision is based on stronger-than-expected performance through January 4, 2025.
The company reported that fourth quarter-to-date comparable sales were up in the low single digits, tracking ahead of the prior guidance of positive 1%. Both the American Eagle and Aerie brands showed positive trends, contributing to record sales achieved in December.
Despite the positive comparable sales, total revenue for the fourth quarter is still expected to be down approximately 5%. This decline is attributed to an $85 million adverse impact from one less selling week and a retail calendar shift. The company also repurchased 1.5 million shares for $27 million in the quarter-to-date period, bringing year-to-date repurchases to $158 million.
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