American Eagle Outfitters Q3 sales up 5 percent

Third quarter revenue at American Eagle Outfitters (AEO) of 1.3 billion dollars was up 5 percent with store revenue up 3 percent and digital revenue increasing 10 percent.

The company said in a release that Aerie brand revenue of 393 million dollars rose 12 percent with comparable sales up 12 percent and American Eagle revenue of 857 million dollars rose 2 percent with comparable sales increase of 2 percent.

“I am pleased with our third quarter results which demonstrated the strength of our brands and reflected continued progress on our growth and profit improvement initiatives,” commented Jay Schottenstein, AEO’s executive chairman and CEO.

Gross profit for the quarter of 544 million dollars increased approximately 13 percent and reflected a gross margin rate of 41.8 percent, up 310 basis points. Operating income of 125 million dollars reflected a 9.6 percent margin and diluted earnings per share of 49 cents increased 17 percent.

For Fiscal 2023, the company added that management expects revenue to be up mid-single digits to last year, compared to prior guidance for revenue up low single digits. Operating income is expected to be in the range of 340 dollars to 350 million dollars, at the high end of prior guidance of 325 dollars to 350 million dollars.

For the fourth quarter, management’s outlook reflects revenue up high-single digits and operating income in the range of 105 to 115 million dollars.