The US clothing group American Eagle Outfitters Inc. (AEO) closed the third quarter of the 2023/24 financial year with increases in sales and earnings. Management is now also more optimistic about the outlook for the year as a whole.
According to an interim report published on Tuesday, group sales in the most recent quarter, which ended on October 28, amounted to 1.30 billion US dollars (1.19 billion euros). This exceeded the level of the same period last year by five percent. The Aerie brand achieved an increase of twelve percent to 393 million US dollars, the American Eagle label increased by two percent to 857 million US dollars.
Management is raising its sales forecast for the current year
Thanks to lower product and freight costs as well as lower discounts, operating income grew seven percent to $125.4 million. Net profit reached 96.7 million US dollars (88.2 million euros), 19 percent above the corresponding previous year’s value.
In view of the current figures and a successful start to the final quarter, the company now expects sales to increase by a mid-single-digit percentage for the current financial year. Previously, only an increase in the low single-digit percentage range was expected. The forecast for operating profit, which had previously been between 325 and 350 million US dollars, was increased to between 340 and 350 million US dollars.