American Eagle raises full-year forecast after strong quarterly results, expecting fiscal fourth quarter comparable sales to grow 8-9%, higher than analysts’ 2.1% estimate. Adjusted operating income forecast increased to $303-308 million, up from $255-265 million. Quarterly earnings per share was 53 cents vs. 44 cents expected, revenue was $1.36 billion vs. $1.32 billion expected.

American Eagle shares rose 15% in extended trading after beating third-quarter expectations. Net income for the quarter was $91.34 million, sales rose to $1.36 billion. Sydney Sweeney and Travis Kelce campaigns drove results, with Aerie seeing 11% comparable sales growth. American Eagle comparable sales grew 1%, below expectations.

Despite marketing efforts, campaigns have not been major revenue driver for American Eagle yet. Operating margin was 8.3%, better than expected. Record revenue in third quarter, strong momentum heading into current quarter with record-breaking Thanksgiving weekend. Company optimistic about holiday season following positive results from peers like Abercrombie & Fitch, Gap, and Urban Outfitters.

Discretionary retailers proving resilient ahead of holiday shopping season, higher prices not deterring consumers. Industrywide holiday outlooks unclear, but recent earnings reports from retailers positive for holiday sales. Turnout during Turkey 5 shopping weekend stronger than expected, according to National Retail Federation.

Read more at CNBC: American Eagle (AEO) earnings Q3 2025