American Eagle Outfitters forecasts $130 mn operating profit in Q4

10 Jan '24

1 min read

Pic: American Eagle Outfitters

Insights

American Eagle Outfitters raises its fourth-quarter revenue outlook to be up low double digits, attributing the positive outlook to record holiday sales and strong merchandise margins.
The company reports a fourth-quarter-to-date revenue increase of approximately 8 per cent, with American Eagle up in high single digits and Aerie up in the low teens.

American Eagle Outfitters has raised its fourth quarter outlook for revenue to be up low double digits, including a four point positive contribution from the 53rd week. Operating profit is now expected to be approximately $130 million, up from previous guidance of $105 to $115 million. The improved outlook is a result of record holiday sales and strong merchandise margins.

The company’s fourth quarter-to-date revenue, through December 30, 2023, is up approximately 8 per cent, with American Eagle tracking up high single digits and Aerie up in the low teens, it said in a press release.

“This holiday season we executed with confidence and precision, delivering winning product assortments and an exciting customer experience which showcased the strength of our brands and operations,” said Jay Schottenstein, AEO’s executive chairman of the board and chief executive officer. “As we build on our strategic priorities, I am incredibly pleased with the momentum we are seeing across brands, which has continued into early January. Looking ahead to 2024, we remain confident in our ability to deliver healthy earnings growth and operating rate improvement as we maintain inventory and promotional discipline, prioritise expense control and benefit from ongoing work on our profit improvement initiative.”

Fibre2Fashion News Desk (RR)

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