American Eagle Outfitters (AEO) Tops Q3 EPS by 10c
American Eagle Outfitters (NYSE: AEO) reported Q3 EPS of $0.53, $0.10 better than the analyst estimate of $0.43. Revenue for the quarter came in at $1.36 billion versus the consensus estimate of $1.32 billion.
Outlook
Based on stronger sales trends, the company is raising its fourth quarter operating income guidance to $155 to $160 million based on comparable sales in the range of positive 8% to 9% with similar growth for total revenue. Previous fourth quarter guidance of operating income of $125 to $130 million was based on comparable sales in the positive low single digits. For the year, adjusted operating income guidance rises to $303 to $308 million, with comparable sales in the low single digits from prior guidance of adjusted operating income of $255 to $265 million on flat comparable sales.
| Fourth Quarter 2025 | Fiscal 2025 |
Comparable Sales | Up 8% to 9% | Low Single Digits |
Gross Margin | Down YoY | Down YoY |
Net Tariff Impact | Approximately $50 million | Approximately $70 million |
SG&A | Dollars up Low to Mid Single Digit | Dollars up Low to Mid Single Digit |
Depreciation & Amortization | Approximately $56 million | Approximately $216 million |
Operating Income | $155 to $160 million | $303 to $308 million* |
Tax Rate | Approximately 28% | Approximately 27% |
Weighted Average Share Count | Approximately 173 million | Approximately 174 million |
* Excludes impairment and restructuring charges of $17 million recorded in the First Quarter 2025, as disclosed in the Company's Form 10-Q filed on June 5, 2025.
For earnings history and earnings-related data on American Eagle Outfitters (AEO) click here.