American Eagle Outfitters (AEO) reported a 5% increase in gross profit to $552m, with a gross margin of 40.5%, down 40 basis points from last year due to a $20m tariff impact. Operating income rose to $112m and net income to $91m. Aerie saw double-digit comparable sales growth, exceeding expectations.

Executive chairman Jay Schottenstein is pleased with the positive trend change, citing strong sales and lower costs. The company had a record-breaking Thanksgiving weekend, leading to a raised fourth quarter operating income guidance of $155 to $160m, based on positive 8% to 9% comparable sales growth.

Previous fourth quarter guidance was $125m to $130m, but with stronger sales trends, adjusted operating income guidance for the year rises to $303m to $308m. Total revenue growth is also expected to be positive. The company is focused on finishing the season strong and sustaining success into the future.

Read more at Yahoo Finance: AEO reports Q3 sales, profit spike