American Eagle Outfitters (AEO) surged 16.21% intraday on Wednesday, driven by better-than-expected fiscal third-quarter results and a bullish outlook for the holiday season.
The apparel retailer reported record revenue of $1.36 billion, up 6% year-over-year, surpassing analyst estimates. Earnings per share of $0.53 also topped expectations. Comparable sales rose 4%, with the Aerie brand jumping 11%.
CEO Jay Schottenstein credited strategic marketing campaigns featuring actress Sydney Sweeney and NFL star Travis Kelce for driving customer engagement and attracting new shoppers. The company raised its Q4 operating income guidance to $155-$160 million and upgraded its annual comparable sales forecast to low single-digit growth.
Analysts responded positively, with JP Morgan upgrading the stock to Neutral and raising its price target to $20, citing "strong momentum" in the Aerie brand.
Comments