American Eagle Outfitters Reports Record Revenue Growth

American Eagle Outfitters ( (AEO) ) has released its Q3 earnings. Here is a breakdown of the information American Eagle Outfitters presented to its investors.

American Eagle Outfitters, Inc. is a global specialty retailer known for its popular apparel brands, including American Eagle and Aerie, offering casual and comfortable clothing options across the United States, Canada, Mexico, and other international markets through a robust e-commerce platform and physical stores.

In its third quarter fiscal 2025 earnings report, American Eagle Outfitters reported a record total revenue of $1.4 billion, marking a 6% increase from the previous year. The company attributes this growth to a 4% rise in comparable sales, with Aerie leading the charge with an 11% increase and American Eagle posting a 1% rise. The company has also raised its fourth-quarter operating income guidance, reflecting strong momentum and a successful start to the holiday season.

Key financial highlights from the report include a gross profit of $552 million, a 5% increase from last year, despite a slight decline in gross margin due to tariff impacts. Operating profit stood at $113 million, with a notable 29% increase in diluted earnings per share to $0.53. The company also reported a significant 11% increase in inventory, driven by rising demand and new store openings.

American Eagle Outfitters has been active in shareholder returns, completing $231 million in share repurchases and distributing $21 million in cash dividends this quarter. The company plans to continue its strategic investments, with capital expenditures expected to reach $275 million for the year.

Looking ahead, American Eagle Outfitters is optimistic about sustaining its growth trajectory into 2026, with expectations of continued sales momentum and strategic investments to enhance its market position.