Financial Data and Key Metrics Changes - Total revenue increased by 6% to $1.4 billion, marking a record for the third quarter [5][17] - Operating income reached $113 million, exceeding guidance of $95-$100 million, driven by higher-than-expected demand [5][17] - Diluted EPS for the quarter was $0.53, a 10% increase compared to the adjusted EPS from the previous year [5][17] - Gross profit dollars increased by 5% to $552 million, while gross margin declined by 40 basis points to 40.5% [17][18] Business Line Data and Key Metrics Changes - Aerie's comparable sales (comps) grew by 11%, significantly outperforming American Eagle's 1% comp growth [5][12] - Aerie achieved record revenue, with strong demand across all categories including intimates and apparel [10][11] - American Eagle's denim business showed improvement, particularly in men's clothing, contributing to the overall positive comp growth [12][13] Market Data and Key Metrics Changes - Aerie and Offline are emerging as important customer destinations, with Aerie generating nearly $2 billion in revenue and less than 5% market share, indicating significant growth potential [6][12] - The company reported a 4% increase in comparable sales, a notable improvement from the previous quarter's 1% decrease [5][17] Company Strategy and Development Direction - The company is focused on operational improvements and cost efficiencies to enhance profitability in a dynamic macro environment [5][17] - Incremental investments in advertising are aimed at driving stronger demand and enhancing long-term brand awareness [5][7] - The company plans to continue expanding Aerie and Offline, with 22 Aerie and 26 Offline stores expected to open [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook, citing a meaningful turnaround from the first half of the year and strong performance during the holiday season [8][9] - The fourth quarter is off to an excellent start, with broad-based strength across brands and channels, particularly in Aerie and Offline [21][22] - Management raised fourth quarter operating income guidance to a range of $155-$160 million, based on expected comp sales growth of 8%-9% [22][23] Other Important Information - The company is on track to complete approximately 50 Aerie store remodels and close about 35 lower productivity Aerie stores [20] - The balance sheet remains strong, with cash of $113 million and total liquidity of approximately $560 million [21] Q&A Session Summary Question: Can you discuss the acceleration in fourth quarter guidance and what is driving it? - Management indicated that both brands are trending ahead of expectations, with Aerie expected to see high teens comp growth and American Eagle in the low to mid-single digits [25][26] Question: What are the new denim silhouettes that are working, and how durable are those trends? - Management noted that denim has been strong, particularly in women's, with new silhouettes being tested and performing well [27] Question: What are the drivers of Aerie's same-store sales improvement? - Aerie's strong performance is attributed to core competency businesses, new categories like sleep, and effective marketing strategies [32] Question: What are the expectations for markdowns in the fourth quarter? - Management expects markdowns to be similar to the third quarter, with a focus on maintaining top-line growth despite some increases in markdowns [35] Question: Can you elaborate on customer acquisition trends and retention strategies? - Management reported strong customer acquisition across both brands, with strategies in place to retain these customers through community engagement and product focus [51][53] Question: What are the plans for store openings and closures in the upcoming year? - The company plans to close approximately 35 lower productivity stores while opening a similar number of new Aerie and Offline stores [62][63]

American Eagle raises outlook for the holiday quarter and the year on 'strong momentum' for sales. ...

The apparel retailer now expects comparable sales up 8% to 9% for the fourth quarter thanks to improved sales trends. ...

Exhibit 99.1 AEO Inc. Reports Third Quarter Fiscal 2025 Results Exceeding Expectations; Raises Fourth Quarter Outlook December 2, 2025 – PITTSBURGH – (BUSINESS WIRE) – American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the third quarter ended November 1, 2025. "I'm extremely pleased with the significant trend change across our business reflecting decisive steps taken from merchandising to marketing to operations—all having a positive impact. Record third quarter revenue was hi ...

Core Insights - The Q3 earnings season has shown solid performance, with a projected 13.4% increase in earnings per share for S&P 500 companies, marking the fourth consecutive quarter of double-digit growth [2][25] - Retailers are under scrutiny as they report results, particularly in light of softening consumer sentiment ahead of the holiday shopping season [4] Earnings Reports - Macy's reported a surprise profit with its strongest comparable sales in over three years, but its elevated sales guidance fell short of last year's numbers, leading to a 3% drop in stock [5] - American Eagle Outfitters experienced an 11% stock surge after reporting a profit per share of $0.53, exceeding estimates, and a 6% year-over-year revenue increase to $1.36 billion [7][8] - CrowdStrike raised its full-year revenue guidance after reporting a 22% year-over-year revenue increase to $1.23 billion, despite a diluted loss per share of $0.14 [10][11][12] - Okta's revenue rose 12% to $742 million, beating estimates, but the stock fell due to market reactions [15][16] - Marvell reported earnings per share of $2.20 on revenue of $2.07 billion, but its stock slid 6% after announcing a $3.25 billion acquisition of Celestial AI [17][18] - Credo's stock surged 20% after reporting a profit of $0.44 per share and revenue of $268 million, both exceeding expectations [20][21] - MongoDB's stock soared 15% after reporting revenue of $628.3 million, a 19% year-over-year increase, and a smaller-than-expected loss per share [22][23][24] Market Reactions - Despite solid earnings, market reactions have been more negative than usual, with stocks of companies that missed earnings estimates dropping by an average of 5% [25][27] - Companies that beat earnings estimates saw an average stock price increase of only 0.4%, below the five-year average of 0.9% [26] Sector-Specific Insights - Deere's stock fell 5% after its outlook for the year fell short of expectations amid uncertainty in the US farm economy [28] - Dick's Sporting Goods reported a GAAP earnings per diluted share of $2.07, missing estimates, leading to a 2% drop in stock [40] - Abercrombie & Fitch's stock surged over 18% after reporting earnings per share of $2.36, driven by strong sales at its Hollister brand [42][43] - Best Buy's stock rose 3% after beating analysts' estimates and raising its full-year outlook [46] - Kohl's stock soared 42% after reporting better-than-expected results and increasing its full-year outlook [47] - Alibaba's stock rose 4% after beating quarterly revenue estimates, driven by investments in one-hour delivery and strong growth in its cloud division [48]

Third Quarter 2025 Performance - The company's operating income increased by 6% to $113 million, based on revenue of $136 billion[29] - Comparable sales increased by 4%[28] - Aerie's comparable sales increased by 11%[28] - Earnings per diluted share (EPS) were $053[28] - The company repurchased shares totaling $231 million in the first half of the year, including $21 million this quarter, and returned $64 million in cash dividends year-to-date[29] Fiscal Year 2025 Outlook - The company anticipates comparable sales to be up in the low single digits[30] - The company expects operating income to be between $303 million and $308 million on an adjusted basis[30] - The company projects depreciation and amortization to be approximately $216 million[30] Inventory - Ending inventory increased by 11% to $891232 thousand compared to the previous year[39]

Core Viewpoint - American Eagle Outfitters has raised its annual comparable sales forecast, indicating confidence in marketing-driven demand for its apparel and accessories during the holiday season [1] Group 1 - The company is betting on increased consumer demand driven by marketing efforts [1]

Dec 2, 2025 4:10 PM Eastern Standard Time AEO Inc. Reports Third Quarter Fiscal 2025 Results Exceeding Expectations; Raises Fourth Quarter Outlook Share PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the third quarter ended November 1, 2025. "I'm extremely pleased with the significant trend change across our business reflecting decisive steps taken from merchandising to marketing to operations—all having a positive impact. Record third quarter ...

Core Viewpoint - American Eagle has issued optimistic holiday guidance and raised its full-year forecast following better-than-expected quarterly results, with significant growth anticipated in comparable sales for the fiscal fourth quarter [1][2]. Financial Performance - The company expects full-year adjusted operating income to be between $303 million and $308 million, an increase from the previous range of $255 million to $265 million [2]. - American Eagle's reported net income for the third quarter was $91.34 million, or 53 cents per share, compared to $80.02 million, or 41 cents per share, a year earlier [2]. - Revenue for the quarter rose to $1.36 billion, up approximately 6% from $1.29 billion a year earlier [3][6]. Sales and Campaign Impact - Comparable sales companywide grew by 4%, surpassing the 2.7% expected by analysts, primarily driven by Aerie, which saw an 11% increase in comparable sales and a 13% rise in revenue [4]. - At American Eagle, where marketing campaigns were focused, comparable sales grew by only 1%, falling short of the 2.1% expected by analysts [4]. - The campaigns featuring Sydney Sweeney and Travis Kelce are attracting more customers and generating brand attention, but have not yet significantly impacted revenue [5]. Profitability Metrics - American Eagle's operating margin for the quarter was 8.3%, exceeding the 7.5% expected by analysts [5].

American Eagle Outfitters, Inc. (NYSE:AEO) will release earnings results for the third quarter after the closing bell on Tuesday, Dec. 2.Analysts expect the company to report quarterly earnings at 44 cents per share. That’s down from 48 cents per share in the year-ago period. The consensus estimate for American Eagle’s quarterly revenue is $1.32 billion ($1.29 billion a year earlier), according to Benzinga Pro.With the recent buzz around American Eagle, some investors may be eyeing potential gains from the ...