American Eagle Outfitters (AEO) has raised Q4 FY25 guidance after a strong Q3, with total net revenue up 6% YoY to $1.36bn. Aerie saw an 11% increase in comparable sales, while American Eagle was up 1%. Gross profit grew by 5% to $552m, but gross margin slipped due to tariffs and markdowns.

Operating profit reached $113m, with diluted earnings per share at $0.53, a 29% increase YoY. Ending inventory rose by 11% to $891m. AEO completed $231m in share repurchases year to date. The company expects Q4 operating income of $155m–$160m.

Despite raising its outlook, AEO anticipates a YoY gross margin decline due to tariff impacts. CEO Jay Schottenstein praised positive business changes. Retail Insight Network reported the news.

Read more at Yahoo Finance: American Eagle Outfitters lifts full-year outlook after Q3 revenue rise