"On Tuesday, December 2, apparel retail company American Eagle Outfitters (AEO) shared its third-quarter earnings for fiscal 2025, including $1.36 billion in revenue. The 6% increase year-over-year (YOY) beat Wall Street's predicted $1.32 billion in revenue, according to consensus estimates cited by CNBC. The company also reported earnings per share of 53 cents, compared to 44 cents expected. American Eagle's namesake brand-and home to the "Sydney Sweeney has great jeans" advertisements-can't claim much responsibility for the jump."
"Its comparable sales grew by only 1% YOY, while Aerie's comparable sales jumped 11% YOY. "Resurgence in intimates" Looking at the fiscal year to date, Aerie also reported higher revenue than last year, while the American Eagle brand lagged behind itself YOY. In an earnings call, president and executive creative director of American Eagle and Aerie, Jennifer Foyle, pointed to a "resurgence in intimates" and "strength" across all of the brand's offerings, as key to Aerie's success. Foyle added that the brand has seen an "acceleration in demand" since the spring."
American Eagle Outfitters reported $1.36 billion in revenue for Q3 fiscal 2025, a 6% year-over-year increase that beat consensus estimates and delivered earnings per share of $0.53 versus $0.44 expected. Aerie drove the improvement with an 11% comparable-sales gain and broad strength across intimates and other categories, while the American Eagle namesake brand posted only 1% comparable-sales growth. Management cited an acceleration in demand since spring, highlighted a resurgence in intimates, noted Aerie's anti-AI advertising pledge, and raised fourth-quarter guidance after a record Thanksgiving weekend and strength at Aerie and Offline.
Read at Fast Company
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