The US clothing group American Eagle Outfitters Inc. (AEO) presented mixed figures for the third quarter of the 2024/25 financial year on Wednesday evening and revised its sales forecast downwards.
In the 13 weeks prior to November 2nd, group sales reached $1.29 billion (1.22 billion euros). This means that it fell by one percent compared to the same quarter of the previous year. Adjusted for calendar effects, revenues increased by three percent, the company said. Sales of the core American Eagle brand fell three percent to $831.9 million. The lingerie label Aerie, on the other hand, achieved an increase of four percent to 410.4 million US dollars.
Despite successful cost-cutting measures, the operating result fell by 15 percent to $106.1 million, not least due to extensive price discounts as well as value adjustments and restructuring costs. Net profit fell by 17 percent to 80.0 million US dollars (75.8 million euros).
The latest figures and uncertainties regarding demand in the Christmas business prompted management to lower its sales forecast for the current financial year. The group now only expects sales growth of one percent, after previously expecting an increase of two to three percent.