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US' AEO raises financial forecasts for Q4, up from previous guidance

16 Jan '25
2 min read
US' AEO raises financial forecasts for Q4, up from previous guidance
Pic: AEO

Insights

  • American Eagle Outfitters raised its forecast for Q4, expecting $135 million in operating profit, up from $125-$130 million, driven by a 2 per cent rise in comparable sales.
  • Despite strong trends across American Eagle and Aerie, total revenue is projected to decline 5 per cent due to the retail calendar.
  • AEO repurchased 7.5 million shares YTD, returning $231 million to shareholders.
American Eagle Outfitters (AEO), Inc, an American clothing and accessories retailer, has raised its fourth-quarter financial forecast after reporting stronger-than-anticipated comparable sales performance. The company in its fourth quarter outlook expects operating profit to be $135 million, up from previous guidance of $125-$130 million.

The above forecast is based on a comparable sales increase of 2 per cent, building on 8 per cent growth last year. The retail calendar will have an adverse impact on total revenue, resulting in total revenue down approximately 5 per cent. Trends across American Eagle and Aerie were positive, AEO said in a press release.

“As a top destination for holiday shopping, we achieved record sales in December. We came to market with exciting new product assortments and engaging customer experiences, resulting in growth across brands and selling channels,” said Jay Schottenstein, executive chairman of the Board and chief executive officer at AEO. “We also remain focused on driving operational efficiencies, putting us on track to deliver high-teens operating profit growth in 2024.”

Fourth quarter-to-date, the company has repurchased 1.5 million shares for $27 million, bringing year-to-date (YTD) repurchases to 7.5 million shares for $158 million. The company continues to have 22.5 million shares remaining for repurchase under the current authorisation. In YTD, the company has returned $231 million in cash to shareholders through a combination of dividends and share repurchases.

Fibre2Fashion News Desk (SG)

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