American Eagle Outfitters surges 11% after raising outlook on 'record' holiday sales
Investing.com | Author Senad Karaahmetovic
Published Jan 08, 2024 08:31AM ET
American Eagle Outfitters (AEO) surges 11% after raising outlook on 'record' holiday sales
American Eagle Outfitters , Inc. (NYSE:AEO) said it expects a robust performance for the fourth quarter-to-date, with revenue up approximately 8% through Saturday, December 30, 2023.
The American Eagle brand is tracking up in the high single digits, while Aerie is showing growth in the low teens, the company said today.
The stock rose nearly 11% in response to this business update.
In response to this positive momentum, the company is revising its fourth-quarter outlook, anticipating revenue to be up low double digits. The revised operating profit expectation is approximately $130 million, reflecting an increase from the previous guidance range of $105 to $115 million.
“The improved outlook is a result of record holiday sales and strong merchandise margins,” AEO said.
“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,” commented Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer.
Abercrombie & Fitch (ANF) also raised its forecast earlier today, citing robust holiday demand.
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