American Eagle Outfitters Raises Q4 Profit Outlook

American Eagle Outfitters Inc. has raised its fourth-quarter profit outlook to approximately $135 million, up from previous estimates, due to better-than-expected holiday sales across its brands, including American Eagle and Aerie. Comparable sales are reportedly up in the low single digits, surpassing earlier guidance of a 1% increase, although total revenue is expected to decline by about 5% due to a calendar shift. CEO Jay Schottenstein attributed the positive sales trends to exciting new product assortments and enhanced customer experiences. Despite this positive outlook, shares of American Eagle fell about 5.4% on the day of the announcement, reflecting a shift in retail sentiment. The company has also returned significant cash to shareholders through dividends and share repurchases, with $231 million returned year-to-date. Looking forward, AEO aims for high-teens operating profit growth in 2024 as it continues to focus on operational efficiencies.