American Eagle’s (AEO) Q3 2025 Earnings

American eagle It issued bullish holiday guidance and raised its full-year outlook on Tuesday after posting better-than-expected quarterly results.

The apparel company expects comparable sales for the fiscal fourth quarter to grow between 8% and 9% — about four times better than the 2.1% analysts expected, according to StreetAccount.

American Eagle now expects its full-year adjusted operating income to be between $303 million and $308 million – compared to its previous range of $255 million to $265 million.

American Eagle shares rose as much as 15% in extended trading.

The company beat third-quarter expectations in terms of both top and bottom line results.

Here’s how American Eagle performed this quarter compared to what Wall Street expected, based on a survey of analysts conducted by LSEG:

• EPS: 53 cents versus 44 cents expected
• profit: $1.36 billion versus $1.32 billion expected

The company’s reported net income for the three-month period 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 the previous year.

These results mark the first time investors have seen a full quarter of the impact from American Eagle’s impressive advertising campaigns with Sidney Sweeney and Travis Kelce.

Companywide, American Eagle saw comparable sales growth of 4%, better than the 2.7% analysts expected, according to StreetAccount. While overall business results exceeded expectations, they were primarily driven by Aerie, which saw a comparable sales rise of 11% and a revenue increase of approximately 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 that the campaigns “attract more customers” and create more interest around the brand, but the results show they are not yet a major driver of revenue.

However, it does not have a significant impact on profits either. During the quarter, American Eagle’s operating margin was 8.3%, better than the 7.5% analysts expected, according to StreetAccount.