American Eagle Outfitters raises forecasts

The US clothing group American Eagle Outfitters Inc. (AEO) raised its forecasts for the final quarter of the 2023/24 financial year on Monday due to the positive Christmas business.

In the period from the end of October to December 30th, group sales rose by around eight percent and reached a new record level. The revenues of the main brand American Eagle increased by a high single-digit percentage, while the Aerie label achieved an increase in the low double-digit range.

For the entire fourth quarter, which ends at the end of January, management now expects sales to grow by a low double-digit percentage. The forecast for the operating profit adjusted for special items in the final quarter, which had previously been between 105 and 115 million US dollars, was increased to 130 million US dollars. The company cited record Christmas sales and “strong” gross margins as reasons for the increase.

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