American Eagle Outfitters celebrated a successful holiday season with impressive sales figures for December 2024. Fourth quarter-to-date comparable sales increased in the low single digits, surpassing the recent guidance of a 1% rise. Positive trends were observed across both the American Eagle and Aerie brands.
Raising Fourth Quarter Outlook
As a result of this strong performance, the company raised its fourth quarter outlook, projecting an operating profit of approximately $135 million, up from the previous range of $125 million to $130 million. This outlook is supported by a comparable sales increase of about 2%, building on an 8% growth from the prior year. However, the retail calendar will adversely impact total revenue, which is forecasted to decrease by approximately 5%.
Jay Schottenstein, AEO’s Executive Chairman of the Board and Chief Executive Officer, remarked, “As a top destination for holiday shopping, we achieved record sales in December. We came to market with exciting new product assortments and engaging customer experiences, resulting in growth across brands and selling channels. We also remain focused on driving operational efficiencies, putting us on track to deliver high-teens operating profit growth in 2024.”
Shareholder Returns
Throughout the fourth quarter, AEO repurchased 1.5 million shares for $27 million, bringing the year-to-date total to 7.5 million shares for $158 million. Currently, 22.5 million shares remain authorized for repurchase. In total, the company has returned $231 million in cash to shareholders through dividends and share repurchases this year.
Overall, American Eagle Outfitters’ strategic focus on innovative product assortments and customer engagement has paid off, setting the company up for continued success and profitability.
